Destiny Media (DSNY) 10-Q 15 Jul 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May 31, 2016	Jul. 15, 2016
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2016
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	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	May 31, 2016	Aug. 31, 2015
Current
Cash and cash equivalents	$ 756,402	$ 387,316
Accounts receivable, net of allowance for doubtful accounts of $9,304 [Aug 31, 2015 - $6,129]	438,430	399,148
Other receivables	7,734	15,471
Current portion of long term receivable	106,899	98,180
Prepaid expenses	32,395	36,042
Total current assets	1,341,860	936,157
Deposits	23,055	32,222
Long term receivable	87,597	167,350
Property and equipment, net	399,153	401,461
Total assets	1,851,665	1,537,190
Current
Accounts payable	87,876	139,879
Accrued liabilities	199,360	189,672
Deferred leasehold inducement	37,777	63,217
Deferred revenue	24,887	24,712
Obligation under capital lease - current portion	5,151	5,205
Total current liabilities	355,051	422,685
Obligation under capital lease - long term portion	7,967	12,071
Total liabilities	363,018	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	9,653,678	9,122,132
Accumulated deficit	(7,887,264)	(7,708,061)
Accumulated other comprehensive (loss)	(332,781)	(364,631)
Total stockholders' equity	1,488,647	1,102,434
Total liabilities and stockholders' equity	$ 1,851,665	$ 1,537,190

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	May 31, 2016	Aug. 31, 2015
Allowance for Doubtful Accounts Receivable, Current	$ 9,304	$ 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 OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
Revenue	$ 875,502	$ 803,409	$ 2,487,120	$ 2,501,672
Operating expenses
General and administrative	202,016	267,967	595,605	808,547
Sales and marketing	257,536	360,925	910,322	1,114,431
Research and development	362,920	348,680	1,013,682	1,123,931
Amortization	60,746	53,595	163,771	128,378
Total Operating Expenses	883,218	1,031,167	2,683,380	3,175,287
(Loss) from operations	(7,716)	(227,758)	(196,260)	(673,615)
Other income
Other income	0	289	0	289
Interest income	4,903	9,040	17,057	34,131
Net (loss)	(2,813)	(218,429)	(179,203)	(639,195)
Other comprehensive income (loss)
Foreign currency translation adjustments	68,915	(1,824)	31,850	(267,611)
Total comprehensive income (loss)	$ 66,102	$ (220,253)	$ (147,353)	$ (906,806)
Net (loss) per common share, basic and diluted	$ 0	$ 0	$ 0	$ (0.01)
Weighted average common shares outstanding:
Basic	55,013,874	52,993,874	54,645,261	52,993,874
Diluted	55,013,874	52,993,874	54,645,261	52,993,874

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - 9 months ended May 31, 2016 - 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)			(179,203)	31,850	(147,353)
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		(8,640)			(8,640)
Stock based compensation		37,206			37,206
Ending Balance at May. 31, 2016	$ 55,014	$ 9,653,678	$ (7,887,264)	$ (332,781)	$ 1,488,647
Ending Balance (Shares) at May. 31, 2016	55,013,874

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	May 31, 2016	May 31, 2015
OPERATING ACTIVITIES
Net loss	$ (179,203)	$ (639,195)
Items not involving cash:
Amortization	163,771	128,378
Stock-based compensation	37,206	19,147
Deferred leasehold inducement	(25,557)	80,167
Unrealized foreign exchange	(3,590)	25,987
Changes in non-cash working capital:
Accounts receivable	(33,979)	(40,972)
Other receivables	7,733	60,989
Prepaid expenses and deposits	13,283	71,807
Accounts payable	(57,454)	49,160
Accrued liabilities	8,233	35,330
Deferred revenue	(101)	(16,128)
Long term receivable	75,932	74,753
Net cash provided by (used in) operating activities	6,274	(150,577)
INVESTING ACTIVITY
Purchase of property and equipment	(157,083)	(282,461)
Net cash used in investing activity	(157,083)	(282,461)
FINANCING ACTIVITY
Common stock issued in private placements, net	496,360	0
Net cash provided by financing activity	496,360	0
Effect of foreign exchange rate changes on cash	23,535	(137,578)
Net increase (decrease) in cash during the period	369,086	(570,616)
Cash, beginning of the period	387,316	990,007
Cash, end of the period	756,402	419,391
Supplementary disclosure
Interest paid	0	442
Income taxes paid	$ 0	$ 0

ORGANIZATION

ORGANIZATION	9 Months Ended
	May 31, 2016
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, 2016
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, 2016 are not necessarily indicative of the results that may be expected for the year ended August 31, 2016. The consolidated 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 generally accepted accounting principles in the United States 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	9 Months Ended
	May 31, 2016
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, 2016, aggregate installments of $788,450 AUD including interest of $232,445 AUD have been received. The following table summarizes the changes regarding the carrying value of the remaining receivable balance during the nine-month period ended May 31, 2016 and for the year ended August 31, 2015: May 31, 2016 August 31, 2015 $ $ Beginning balance 265,530 461,294 Gross installments received (91,718 ) (135,403 ) Interest included in above 18,176 36,089 Foreign exchange impact 2,508 (96,450 ) Ending balance 194,496 265,530 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 25,711 4,766 30,477 2017 109,662 12,244 121,906 2018 59,123 1,779 60,902 194,496 18,789 213,285

STOCKHOLDERS EQUITY

STOCKHOLDERS EQUITY	9 Months Ended
	May 31, 2016
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, 2016, 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 Plan, under which up to 7,750,000 shares of the common stock, has been reserved for issuance. A total of 2,053,181 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 May 31, 2016, 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 (270,000 ) 0.98 — — Exercised — — — — Outstanding at May 31, 2016 950,000 0.40 1.83 — Exercisable at May 31, 2016 575,000 0.40 1.37 — The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money at May 31, 2016. The following table summarizes information regarding the non-vested stock purchase options outstanding as of May 31, 2016: Weighted Average Exercise Number of Options Price Non-vested options at September 1, 2015 736,250 0.90 Granted — — Forfeited (80,000 ) 1.70 Vested (281,250 ) 0.40 Non-vested options at May 31, 2016 375,000 0.40 As of May 31, 2016, there was $49,607 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 0.98 years. During the three and nine months ended May 31, 2016 and 2015, stock-based compensation expense has been reported in the condensed consolidated statement of operations and comprehensive income as follows: Three Months Ended Nine months Ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 $ $ $ $ Stock-based compensation: General and administrative 7,152 5,249 21,455 13,171 Sales and marketing 3,266 587 9,798 5,389 Research and development 1,984 - 5,953 587 Total stock-based compensation 12,402 5,836 37,206 19,147 [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, 2016, the Company recognized compensation expense of $25,896 (2015 - $81,949) in salaries and wages on the condensed 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 $0.2237 (2015 - $0.3937). 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, 2016
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 67,463 2017 224,878 During the three and nine months ended May 31, 2016, the Company incurred rent expense of $73,021 and $193,908, respectively (2015 - $63,989 and $230,038, respectively) 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, 2016 has included the allocation of rental payments on a straight-line basis. 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: $ 2016 1,086 2017 6,513 2018 6,730 Total lease payments 14,329 Less: Amounts representing interest (1,211 ) Balance of obligation 13,118 Less: Current Less: Current portion (5,151 ) Long term portion 7,967

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	May 31, 2016
RELATED PARTY TRANSACTIONS [Text Block]	6. RELATED PARTY TRANSACTIONS The Company entered into a consulting agreement with a family member of a former Director to provide project management service effective March 1, 2014. During the nine months ended May 31, 2016, the Company paid consulting fees of $Nil (2015 - $69,290) under this agreement. The family member’s service terminated at the end of May, 2015.

INCOME TAX

INCOME TAX	9 Months Ended
	May 31, 2016
INCOME TAX [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 May 31, 2016. 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, 2016
CONTINGENCIES [Text Block]	8. CONTINGENCIES On November 8, 2011, the Company was served with a Notice of Civil Claim in the Supreme Court of British Columbia from Noramco Capital Corporation for $100,000. The claim asserts that the Company has repudiated a subscription agreement entered into in August 2000. Management believes the claim is without merit and that the likelihood that the outcome of this matter will have a material adverse impact on its result of operations, cash flows and financial condition of the Company is remote. The Company has filed a counterclaim against Noramco and the alleged major beneficial shareholder of Noramco, R. A. Bruce McDonald, for damages arising from a proposed private placement in 2000 which did not close.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	May 31, 2016
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") No. 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In February 2016, FASB issued ASU 2016-02, Leases

CONCENTRATIONS AND ECONOMIC DEP

CONCENTRATIONS AND ECONOMIC DEPENDENCE	9 Months Ended
	May 31, 2016
CONCENTRATIONS AND ECONOMIC DEPENDENCE [Text Block]	10. CONCENTRATIONS AND ECONOMIC DEPENDENCE The Company operates solely in the digital media software segment and all revenue from its products and services are made in this segment. Revenue from external customers, by product and location of customer, is as follows: Three Months Ended Nine months Ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 $ $ $ $ Play MPE® North America 368,449 319,130 1,020,476 967,447 Europe 422,699 398,490 1,224,132 1,295,423 Australasia 69,345 78,295 201,388 216,148 Total Play MPE® 860,493 795,915 2,445,996 2,479,018 Clipstream ® North America 15,009 7,494 41,124 22,654 Outside of North America — — — — Total Clipstream ® 15,009 7,494 41,124 22,654 Total revenue 875,502 803,409 2,487,120 2,501,672 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, 2016, the Company generated 42% of total revenue from one customer [2015 – 45%]. It is in management’s opinion that the Company is not exposed to significant credit risk. As at May 31, 2016, one customer represented $236,189 ( 50%) 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)	9 Months Ended
	May 31, 2016
Schedule of Long Term Receivable [Table Text Block]	May 31, 2016 August 31, 2015 $ $ Beginning balance 265,530 461,294 Gross installments received (91,718 ) (135,403 ) Interest included in above 18,176 36,089 Foreign exchange impact 2,508 (96,450 ) Ending balance 194,496 265,530
Schedule of Financing Receivables, Minimum Payments [Table Text Block]	Principal Interest Total $ $ $ 2016 25,711 4,766 30,477 2017 109,662 12,244 121,906 2018 59,123 1,779 60,902 194,496 18,789 213,285

STOCKHOLDERS EQUITY (Tables)

STOCKHOLDERS EQUITY (Tables)	9 Months Ended
	May 31, 2016
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 (270,000 ) 0.98 — — Exercised — — — — Outstanding at May 31, 2016 950,000 0.40 1.83 — Exercisable at May 31, 2016 575,000 0.40 1.37 —
Schedule of Non-vested Stock Options Activity [Table Text Block]	Weighted Average Exercise Number of Options Price Non-vested options at September 1, 2015 736,250 0.90 Granted — — Forfeited (80,000 ) 1.70 Vested (281,250 ) 0.40 Non-vested options at May 31, 2016 375,000 0.40
Schedule of Stock-based Compensation Expense [Table Text Block]	Three Months Ended Nine months Ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 $ $ $ $ Stock-based compensation: General and administrative 7,152 5,249 21,455 13,171 Sales and marketing 3,266 587 9,798 5,389 Research and development 1,984 - 5,953 587 Total stock-based compensation 12,402 5,836 37,206 19,147

COMMITMENTS (Tables)

COMMITMENTS (Tables)	9 Months Ended
	May 31, 2016
Schedule of Sub-Lease Payments [Table Text Block]	$ 2016 67,463 2017 224,878
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	$ 2016 1,086 2017 6,513 2018 6,730 Total lease payments 14,329 Less: Amounts representing interest (1,211 ) Balance of obligation 13,118 Less: Current Less: Current portion (5,151 ) Long term portion 7,967

CONCENTRATIONS AND ECONOMIC D20

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	9 Months Ended
	May 31, 2016
Schedule of Revenue by Customer [Table Text Block]	Three Months Ended Nine months Ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 $ $ $ $ Play MPE® North America 368,449 319,130 1,020,476 967,447 Europe 422,699 398,490 1,224,132 1,295,423 Australasia 69,345 78,295 201,388 216,148 Total Play MPE® 860,493 795,915 2,445,996 2,479,018 Clipstream ® North America 15,009 7,494 41,124 22,654 Outside of North America — — — — Total Clipstream ® 15,009 7,494 41,124 22,654 Total revenue 875,502 803,409 2,487,120 2,501,672

LONG TERM RECEIVABLE (Narrative

LONG TERM RECEIVABLE (Narrative) (Details)	9 Months Ended
	May 31, 2016USD ($)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	$ 788,450
Long Term Receivable 7	$ 232,445

STOCKHOLDERS EQUITY (Narrative)

STOCKHOLDERS EQUITY (Narrative) (Details)	9 Months Ended
	May 31, 2016USD ($)modyr$ / 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	2,053,181
Stockholders Equity 12	12
Stockholders Equity 13 | mo	24
Stockholders Equity 14	$ 49,607
Stockholders Equity 15 | yr	0.98
Stockholders Equity 16	5.00%
Stockholders Equity 17	$ 12,500
Stockholders Equity 18	25,000
Stockholders Equity 19	400,000
Stockholders Equity 20	25,896
Stockholders Equity 21	81,949
Stockholders Equity 22	0.2237
Stockholders Equity 23	$ 0.3937

COMMITMENTS (Narrative) (Detail

COMMITMENTS (Narrative) (Details)	9 Months Ended
	May 31, 2016USD ($)
Commitments 1	$ 73,021
Commitments 2	193,908
Commitments 3	63,989
Commitments 4	$ 230,038

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details)	9 Months Ended
	May 31, 2016USD ($)
Related Party Transactions 1	$ 0
Related Party Transactions 2	$ 69,290

CONTINGENCIES (Narrative) (Deta

CONTINGENCIES (Narrative) (Details)	9 Months Ended
	May 31, 2016USD ($)
Contingencies 1	$ 100,000

CONCENTRATIONS AND ECONOMIC D26

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details)	9 Months Ended
	May 31, 2016USD ($)
Concentrations And Economic Dependence 1	42.00%
Concentrations And Economic Dependence 2	45.00%
Concentrations And Economic Dependence 3	$ 236,189
Concentrations And Economic Dependence 4	50.00%
Concentrations And Economic Dependence 6	59.00%

Schedule of Long Term Receivabl

Schedule of Long Term Receivable (Details)	9 Months Ended
	May 31, 2016USD ($)
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	(91,718)
Long Term Receivable Schedule Of Long Term Receivable 4	(135,403)
Long Term Receivable Schedule Of Long Term Receivable 5	18,176
Long Term Receivable Schedule Of Long Term Receivable 6	36,089
Long Term Receivable Schedule Of Long Term Receivable 7	2,508
Long Term Receivable Schedule Of Long Term Receivable 8	(96,450)
Long Term Receivable Schedule Of Long Term Receivable 9	194,496
Long Term Receivable Schedule Of Long Term Receivable 10	$ 265,530

Schedule of Financing Receivabl

Schedule of Financing Receivables, Minimum Payments (Details)	9 Months Ended
	May 31, 2016USD ($)
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 1	$ 25,711
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 2	4,766
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 3	30,477
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 4	109,662
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 5	12,244
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 6	121,906
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 7	59,123
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 8	1,779
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 9	60,902
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 10	194,496
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 11	18,789
Long Term Receivable Schedule Of Financing Receivables, Minimum Payments 12	$ 213,285

Schedule of Stock Option Activi

Schedule of Stock Option Activity (Details)	9 Months Ended
	May 31, 2016USD ($)
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	$ (270,000)
Stockholders Equity Schedule Of Stock Option Activity 10	0.98
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	$ 950,000
Stockholders Equity Schedule Of Stock Option Activity 18	0.40
Stockholders Equity Schedule Of Stock Option Activity 19	1.83
Stockholders Equity Schedule Of Stock Option Activity 20	$ 0
Stockholders Equity Schedule Of Stock Option Activity 21	$ 575,000
Stockholders Equity Schedule Of Stock Option Activity 22	0.40
Stockholders Equity Schedule Of Stock Option Activity 23	1.37
Stockholders Equity Schedule Of Stock Option Activity 24	$ 0

Schedule of Non-vested Stock Op

Schedule of Non-vested Stock Options Activity (Details)	9 Months Ended
	May 31, 2016USD ($)
Stockholders Equity Schedule Of Non-vested Stock Options Activity 1	$ 736,250
Stockholders Equity Schedule Of Non-vested Stock Options Activity 2	0.90
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	$ (80,000)
Stockholders Equity Schedule Of Non-vested Stock Options Activity 6	1.70
Stockholders Equity Schedule Of Non-vested Stock Options Activity 7	$ (281,250)
Stockholders Equity Schedule Of Non-vested Stock Options Activity 8	0.40
Stockholders Equity Schedule Of Non-vested Stock Options Activity 9	$ 375,000
Stockholders Equity Schedule Of Non-vested Stock Options Activity 10	0.40

Schedule of Stock-based Compens

Schedule of Stock-based Compensation Expense (Details)	9 Months Ended
	May 31, 2016USD ($)
Stockholders Equity Schedule Of Stock-based Compensation Expense 1	$ 7,152
Stockholders Equity Schedule Of Stock-based Compensation Expense 2	5,249
Stockholders Equity Schedule Of Stock-based Compensation Expense 3	21,455
Stockholders Equity Schedule Of Stock-based Compensation Expense 4	13,171
Stockholders Equity Schedule Of Stock-based Compensation Expense 5	3,266
Stockholders Equity Schedule Of Stock-based Compensation Expense 6	587
Stockholders Equity Schedule Of Stock-based Compensation Expense 7	9,798
Stockholders Equity Schedule Of Stock-based Compensation Expense 8	5,389
Stockholders Equity Schedule Of Stock-based Compensation Expense 9	1,984
Stockholders Equity Schedule Of Stock-based Compensation Expense 10	0
Stockholders Equity Schedule Of Stock-based Compensation Expense 11	5,953
Stockholders Equity Schedule Of Stock-based Compensation Expense 12	587
Stockholders Equity Schedule Of Stock-based Compensation Expense 13	12,402
Stockholders Equity Schedule Of Stock-based Compensation Expense 14	5,836
Stockholders Equity Schedule Of Stock-based Compensation Expense 15	37,206
Stockholders Equity Schedule Of Stock-based Compensation Expense 16	$ 19,147

Schedule of Sub-Lease Payments

Schedule of Sub-Lease Payments (Details)	9 Months Ended
	May 31, 2016USD ($)
Commitments Schedule Of Sub-lease Payments 1	$ 67,463
Commitments Schedule Of Sub-lease Payments 2	$ 224,878

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments for Capital Leases (Details)	9 Months Ended
	May 31, 2016USD ($)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 1	$ 1,086
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 2	6,513
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 3	6,730
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 4	14,329
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 5	(1,211)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 6	13,118
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 7	(5,151)
Commitments Schedule Of Future Minimum Lease Payments For Capital Leases 8	$ 7,967

Schedule of Revenue by Customer

Schedule of Revenue by Customer (Details)	9 Months Ended
	May 31, 2016USD ($)
Concentrations And Economic Dependence Schedule Of Revenue By Customer 1	$ 368,449
Concentrations And Economic Dependence Schedule Of Revenue By Customer 2	319,130
Concentrations And Economic Dependence Schedule Of Revenue By Customer 3	1,020,476
Concentrations And Economic Dependence Schedule Of Revenue By Customer 4	967,447
Concentrations And Economic Dependence Schedule Of Revenue By Customer 5	422,699
Concentrations And Economic Dependence Schedule Of Revenue By Customer 6	398,490
Concentrations And Economic Dependence Schedule Of Revenue By Customer 7	1,224,132
Concentrations And Economic Dependence Schedule Of Revenue By Customer 8	1,295,423
Concentrations And Economic Dependence Schedule Of Revenue By Customer 9	69,345
Concentrations And Economic Dependence Schedule Of Revenue By Customer 10	78,295
Concentrations And Economic Dependence Schedule Of Revenue By Customer 11	201,388
Concentrations And Economic Dependence Schedule Of Revenue By Customer 12	216,148
Concentrations And Economic Dependence Schedule Of Revenue By Customer 13	860,493
Concentrations And Economic Dependence Schedule Of Revenue By Customer 14	795,915
Concentrations And Economic Dependence Schedule Of Revenue By Customer 15	2,445,996
Concentrations And Economic Dependence Schedule Of Revenue By Customer 16	2,479,018
Concentrations And Economic Dependence Schedule Of Revenue By Customer 17	15,009
Concentrations And Economic Dependence Schedule Of Revenue By Customer 18	7,494
Concentrations And Economic Dependence Schedule Of Revenue By Customer 19	41,124
Concentrations And Economic Dependence Schedule Of Revenue By Customer 20	22,654
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	15,009
Concentrations And Economic Dependence Schedule Of Revenue By Customer 26	7,494
Concentrations And Economic Dependence Schedule Of Revenue By Customer 27	41,124
Concentrations And Economic Dependence Schedule Of Revenue By Customer 28	22,654
Concentrations And Economic Dependence Schedule Of Revenue By Customer 29	875,502
Concentrations And Economic Dependence Schedule Of Revenue By Customer 30	803,409
Concentrations And Economic Dependence Schedule Of Revenue By Customer 31	2,487,120
Concentrations And Economic Dependence Schedule Of Revenue By Customer 32	$ 2,501,672