Destiny Media (DSNY) 10-Q 14 Apr 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Feb. 28, 2021	Apr. 12, 2021
Document and Entity Information [Abstract]
Entity Registrant Name	DESTINY MEDIA TECHNOLOGIES INC
Entity Central Index Key	0001099369
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2021
Current Fiscal Year End Date	--08-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		10,385,571
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED INTERIM

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS - USD ($)	Feb. 28, 2021	Aug. 31, 2020
Current
Cash and cash equivalents	$ 3,011,715	$ 1,841,340
Short-term investments		781,490
Accounts receivable, net of allowance for doubtful accounts of $19,537, [August 31, 2020 – $23,412]	328,131	426,832
Other receivables	41,844	26,083
Prepaid expenses	96,764	78,562
Total current assets	3,478,454	3,154,307
Deposits	35,185	34,316
Property and equipment, net	169,809	194,277
Intangible assets, net	15,736	22,952
Right of use asset	301,228	403,961
Total assets	4,000,412	3,809,813
Current
Accounts payable	138,062	119,399
Accrued liabilities	369,697	353,235
Deferred revenue	18,269	19,638
Current portion of operating lease liability	235,659	238,261
Total current liabilities	761,687	730,533
Operating lease liability, net of current portion	114,170	219,063
Total liabilities	875,857	949,596
Stockholders' equity
Common stock, par value $0.001 Authorized: 20,000,000 shares Issued and outstanding: 10,409,361 shares [August 31, 2020 - issued and outstanding 10,450,656 shares]	10,409	10,451
Additional paid-in capital	9,347,311	9,366,290
Accumulated deficit	(5,949,832)	(6,171,068)
Accumulated other comprehensive loss	(283,333)	(345,456)
Total stockholders' equity	3,124,555	2,860,217
Total liabilities and stockholders' equity	$ 4,000,412	$ 3,809,813

CONDENSED CONSOLIDATED INTERI_2

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Parentheticals) - USD ($)	Feb. 28, 2021	Aug. 31, 2020
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 19,537	$ 23,412
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	10,409,361	10,450,646
Common Stock, Shares, Outstanding	10,409,361	10,450,646

CONDENSED CONSOLIDATED INTERI_3

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Unaudited - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Service revenue	$ 930,699	$ 806,729	$ 2,054,676	$ 1,852,585
Cost of revenue	91,899	69,120	182,212	154,402
Gross Margin	838,800	737,609	1,872,464	1,698,183
Operating expenses
General and administrative	164,395	216,094	323,943	435,597
Sales and marketing	340,954	362,400	643,428	646,156
Product development	337,392	287,752	635,480	607,726
Depreciation and amortization	26,400	35,478	50,715	67,550
Total Operating Expenses	869,141	901,724	1,653,566	1,757,029
Income (loss) from operations	(30,341)	(164,115)	218,898	(58,846)
Other income
Interest income	875	8,110	2,338	14,477
Other income	0	674	0	696
Net income (loss)	(29,466)	(155,331)	221,236	(43,673)
Other comprehensive income (loss)
Foreign currency translation adjustments	34,081	(15,108)	62,123	(13,556)
Total comprehensive income (loss)	$ 4,615	$ (170,439)	$ 283,359	$ (57,229)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ 0	$ (0.01)	$ 0.02	$ 0
Weighted average common shares outstanding:
Basic and diluted (in shares)	10,442,752	10,629,438	10,446,726	10,665,834
Hosting costs [Member]
Cost of revenue	$ 29,667	$ 15,839	$ 59,709	$ 42,456
Internal engineering support [Member]
Cost of revenue	7,296	6,516	13,623	13,363
Customer support [Member]
Cost of revenue	41,343	36,351	77,195	75,722
Third party and transaction costs [Member]
Cost of revenue	$ 13,593	$ 10,414	$ 31,685	$ 22,861

CONDENSED CONSOLIDATED INTERI_4

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Unaudited - USD ($)	Common stock [Member]	Additional paid-in capital [Member]	Accumulated Deficit [Member]	Accumulated other comprehensive Loss [Member]	Total
Beginning Balance at Aug. 31, 2019	$ 11,001	$ 9,850,348	$ (6,340,483)	$ (391,859)	$ 3,129,007
Beginning Balance (Shares) at Aug. 31, 2019	11,000,796
Total comprehensive income (loss)			(43,673)	(13,556)	(57,229)
Stock based compensation		20,633			20,633
Common shares retired	$ (550)	(532,673)			$ (533,223)
Common shares retired (Shares)	(550,140)				(550,140)
Ending Balance at Feb. 29, 2020	$ 10,451	9,338,308	(6,384,156)	(405,415)	$ 2,559,188
Ending Balance (Shares) at Feb. 29, 2020	10,450,656
Beginning Balance at Nov. 30, 2019	$ 10,702	9,576,694	(6,228,825)	(390,307)	2,968,264
Beginning Balance (Shares) at Nov. 30, 2019	10,702,041
Total comprehensive income (loss)			(155,331)	(15,108)	(170,439)
Stock based compensation		2,697			2,697
Common shares retired	$ (251)	(241,083)			(241,334)
Common shares retired (Shares)	(251,385)
Ending Balance at Feb. 29, 2020	$ 10,451	9,338,308	(6,384,156)	(405,415)	2,559,188
Ending Balance (Shares) at Feb. 29, 2020	10,450,656
Beginning Balance at Aug. 31, 2020	$ 10,451	9,366,290	(6,171,068)	(345,456)	2,860,217
Beginning Balance (Shares) at Aug. 31, 2020	10,450,646
Total comprehensive income (loss)			221,236	62,123	283,359
Stock based compensation		25,983			25,983
Common shares retired	$ (42)	(44,962)			$ (45,004)
Common shares retired (Shares)	(41,285)				(41,285)
Ending Balance at Feb. 28, 2021	$ 10,409	9,347,311	(5,949,832)	(283,333)	$ 3,124,555
Ending Balance (Shares) at Feb. 28, 2021	10,409,361
Beginning Balance at Nov. 30, 2020	$ 10,451	9,379,139	(5,920,366)	(317,414)	3,151,810
Beginning Balance (Shares) at Nov. 30, 2020	10,450,646
Total comprehensive income (loss)			(29,466)	34,081	4,615
Stock based compensation		13,134			13,134
Common shares retired	$ (42)	(44,962)			$ (45,004)
Common shares retired (Shares)	(41,285)				(41,285)
Ending Balance at Feb. 28, 2021	$ 10,409	$ 9,347,311	$ (5,949,832)	$ (283,333)	$ 3,124,555
Ending Balance (Shares) at Feb. 28, 2021	10,409,361

CONDENSED CONSOLIDATED INTERI_5

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
OPERATING ACTIVITIES
Net income (loss)	$ 221,236	$ (43,673)
Items not involving cash:
Depreciation and amortization	50,715	67,550
Stock-based compensation	25,983	20,633
Allowance for doubtful accounts	(4,465)	0
Unrealized foreign exchange (gain) loss	315	(7,927)
Changes in non-cash working capital:
Accounts receivable	113,910	(240,907)
Other receivables	(15,222)	4,386
Prepaid expenses and deposits	(16,966)	6,646
Accounts payable	24,925	57,321
Accrued liabilities	(618)	13,350
Deferred revenue	(1,863)	(16,399)
Operating lease liability	(6,110)	5,447
Net cash provided by (used in) operating activities	391,840	(133,573)
INVESTING ACTIVITIES
Sale (Purchase) of short-term investments, net	800,624	(753,185)
Purchase of property, equipment and intangibles	(13,557)	(43,666)
Net cash provided by (used in) investing activities	787,067	(796,851)
FINANCING ACTIVITY
Repurchase of common stock for retirement	(45,004)	(533,223)
Net cash used in financing activity	(45,004)	(533,223)
Effect of foreign exchange rate changes on cash	36,472	1,686
Net increase (decrease) in cash and cash equivalents	1,170,375	(1,461,961)
Cash and cash equivalents, beginning of period	1,841,340	2,512,138
Cash and cash equivalents, end of period	3,011,715	1,050,177
Supplementary disclosure
Interest paid	0	0
Income taxes paid	$ 0	$ 0

ORGANIZATION

ORGANIZATION	6 Months Ended
	Feb. 28, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 OTCQB U.S. in the United States, under the symbol "DSY" on the TSX Venture Exchange and under the symbol "DME" on the Berlin, Frankfurt, Xetra and Stuttgart exchanges in Germany.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Feb. 28, 2021
Basis Of Presentation [Abstract]
BASIS OF PRESENTATION [Text Block]	2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States for interim financial information pursuant to the rules and regulations of the United States Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended February 28, 2021 are not necessarily indicative of the results that may be expected for the year ended August 31, 2021. The balance sheet at August 31, 2020 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, 2020. COVID-19 Pandemic In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses, including the Company's. This outbreak could decrease spending, adversely affect demand for the Company's product and harm the Company's business and results of operations. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company's business or results of operations at this time.

SHORT TERM INVESTMENTS

SHORT TERM INVESTMENTS	6 Months Ended
	Feb. 28, 2021
Short-term Investments [Abstract]
SHORT TERM INVESTMENTS [Text Block]	3. SHORT TERM INVESTMENTS The Company's short-term investments consists of one-year Guaranteed Investment Certificates with a major Canadian financial institution that earn interest at variable interest rates ranging from 0.10% - 2.36%. As at February 28, 2021, the Company's short-term investments had reached maturity, and are included in cash and cash equivalents.

PROPERTY AND EQUIPMENT AND INTA

PROPERTY AND EQUIPMENT AND INTANGIBLES	6 Months Ended
	Feb. 28, 2021
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT AND INTANGIBLES [Text Block]	4. PROPERTY AND EQUIPMENT AND INTANGIBLES Accumulated Net book Cost amortization value $ $ $ February 28, 2021 Property and equipment Furniture and fixtures 135,298 114,914 20,384 Computer hardware 279,677 224,268 55,409 Computer software 384,626 319,746 64,880 Leasehold improvement 161,048 131,912 29,136 960,649 790,840 169,809 Intangibles Patents, trademarks and lists 437,607 421,871 15,736 Accumulated Net book Cost amortization value August 31, 2020 $ $ $ Property and equipment Furniture and fixtures 134,629 112,540 22,089 Computer hardware 264,701 215,916 48,785 Computer software 382,852 298,523 84,329 Leasehold improvements 160,295 121,221 39,074 942,477 748,200 194,277 Intangibles Patents, trademarks and lists 436,780 413,828 22,952 Depreciation and amortization for the six months ended February 28, 2021 was $50,715 (2020: $67,550)

RIGHT OF USE ASSET

RIGHT OF USE ASSET	6 Months Ended
	Feb. 28, 2021
Leases [Abstract]
RIGHT OF USE ASSET [Text Block]	5. RIGHT OF USE ASSET The Company entered into a lease agreement commencing July 1, 2017 and expiring June 30, 2022 consisting of approximately 6,600 square feet of office space. On adoption of ASC 842, Lease Accounting, the Company recognized right-of-use assets and a corresponding increase in lease liabilities, in the amount of $671,911 which represented the present value of future lease payments using a discount rate of 8% per year. Property tax and insurance payments paid to the lessor are included in the calculation of future lease payments. Right of Use Asset Continuity February 28, 2021 August 31, 2020 $ $ Balance, September 1 403,961 671,911 Lease Inducement — (47,607 ) 403,961 624,304 Depreciation (111,091 ) (213,935 ) Foreign Currency Translation Adjustment 8,358 (6,408 ) Balance, End of Period 301,228 403,961 The Company has operating lease payments committed as follows: $ 2021 276,915 2022 93,171 Total lease payments payable 370,086 Less amounts representing interest (20,257 ) Total Operating Lease Liability 349,829 Less current portion of operating lease liability (235,659 ) Long term portion of operating lease liability 114,170 Operating Lease Liability Continuity February 28, 2021 August 31, 2020 $ $ Balance, September 1 457,324 671,911 Less Lease Payments (133,612 ) (253,040 ) Interest 16,780 44,692 Foreign Currency Translation Adjustment 9,337 (6,239 ) Balance, End of Period 349,829 457,324 During the three and six month periods ended February 28, 2021 the Company recorded depreciation expense of $56,455 and $111,091 respectively (February 29, 2020: $52,821 and $107,457 respectively) which has been allocated between general and administrative expenses, research and development and sales and marketing on the consolidated statement of comprehensive income (loss). The total rent commitment, net of the leasehold improvement allowance, is being amortized to rent expense on a straight-line basis over the term of the lease.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Feb. 28, 2021
Stockholders' Equity Note [Abstract]
STOCKHOLDERS EQUITY [Text Block]	6. STOCKHOLDERS' EQUITY [a] Common stock issued and authorized The Company is authorized to issue up to 20,000,000 shares of common stock, par value $0.001 per share. Effective January 15, 2021, the Company commenced a Normal Course Issuer Bid (NCIB), pursuant to which the Company may purchase up to a maximum of 522,532 common shares, through the TSX Venture Exchange (the "TSX") at the market price at the time of purchase, subject to daily limits and compliance with the applicable rules of the TSX and Canadian securities laws. During the three and six month periods ended February 28, 2021, the Company repurchased and cancelled 41,285 common shares for $45,004 (February 29, 2020: 550,140 common shares for $533,223 under a NCIB Effective September 16, 2019). [b] Stock option plans The Company has a stock option plan, namely the 2015 Stock Option Plan (the "Plan"), under which up to 530,000 shares of common stock, has been reserved for issuance. A total of 180,000 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 stock option activity under the Plans as of February 28, 2021, and changes during the period then ended is presented below: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Price Contractual Value Options Shares $ Term $ Outstanding at August 31, 2020 400,000 1.35 3.24 — Granted 10,000 1.00 5.00 500 Outstanding at February 28, 2021 410,000 1.34 2.77 16,000 Exercisable at February 28, 2021 285,000 1.40 2.28 9,750 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 February 28, 2021. The following table summarizes information regarding the non-vested options outstanding as of February 28, 2021 and changes during the period then ended: Weighted Average Grant Date Number of Options Fair Value $ Non-vested options at August 31, 2020 203,750 0.48 Granted 10,000 0.34 Vested (88,750 ) 0.48 Non-vested options at February 28, 2021 125,000 0.47 As of February 28, 2021, there was $43,192 of total unrecognized compensation cost related to non-vested stock-based compensation awards. The unrecognized compensation cost is expected to be recognized over a weighted average period of 0.74 years. During the six months ended February 28, 2021, the total stock-based compensation expense of $25,983 $20,633) 2021 2020 $ $ Stock-based compensation General and administrative 9,063 6,336 Sales and marketing 9,573 8,045 Product development 7,347 6,252 Total stock-based compensation 25,983 20,633 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: 2021 2020 Expected term of stock options (years) 3.25 3.25 Expected volatility 105.4% 116.2% Risk-free interest rate 0.35% 1.3% Dividend yields — — Weighted average grant date fair value $0.34 $0.49 Expected volatilities are based on historical volatility of the Company's stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that options granted 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 grant. [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 the Company are able to contribute up to 5% of their annual salary into a pool which is matched equally by the Company in order to purchase Company shares under certain terms. 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 is also responsible for the administration of the Plan on behalf of the Company and the participants. During the six months ended February 28, 2021, the Company recognized compensation expense of $52,857 (February 29, 2020 - $32,422) $0.81 1.00). The shares are held in trust by the Company for a period of one year from the date of purchase.

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Feb. 28, 2021
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES [Text Block]	7. CONTINGENCIES The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company's financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements. On September 5, 2017, the Company's former President and Chief Executive Officer filed a Notice of Civil Claim in the Supreme Court of British Columbia against the Company, its subsidiaries, independent directors and current Chief Executive Officer, claiming damages for conspiracy, breach of contract, wrongful dismissal, defamation and aggravated and punitive damages. The Company believes the claims are without merit and is defending itself against the claims. The quantum of loss, if any, is not determinable at this time and management believes it is unlikely that the outcome of this matter will have an adverse impact on its results of operations, cash flows and financial condition.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Feb. 28, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS [Text Block]	8. NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). Financial Instruments-Credit Losses (Topic 326) amends guidance on reporting credit losses for assets held on an amortized cost basis and available-for-sale debt securities. For assets held on an amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for the Company on September 1, 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The amendments in this ASU was effective for the Company on September 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

CONCENTRATIONS AND ECONOMIC DEP

CONCENTRATIONS AND ECONOMIC DEPENDENCE	6 Months Ended
	Feb. 28, 2021
Geographic Areas, Revenues from External Customers [Abstract]
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 Six Months Ended February 28 February 29 February 28 February 29 2021 2020 2021 2020 $ $ $ $ Play MPE® North America 379,034 305,697 912,494 790,929 Europe 484,159 447,967 992,476 910,397 Australasia 62,999 48,259 138,778 130,837 Africa 938 — 4,466 — Total Play MPE® 927,130 801,923 2,048,214 1,832,163 Clipstream ® North America 3,569 4,806 6,462 20,422 Total revenue 930,699 806,729 2,054,676 1,852,585 Revenue in the above table is based on location of the customer's billing address. Some of these customers have distribution centers located around the globe and distribute around the world. During the six months ended February 28, 2021, the Company generated 42% of total revenue from one customer (February 29, 2020 - 44%). It is in management's opinion that the Company is not exposed to significant credit risk. As at February 28, 2021, one customer represented $145,541 (or 44%) of the trade receivables balance (August 31, 2020, two customers represented $275,620 (or 65%)). The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada.

COMPARATIVE FIGURES

COMPARATIVE FIGURES	6 Months Ended
	Feb. 28, 2021
Comparative figures [Abstract]
COMPARATIVE FIGURES [Text Block]	11. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to the current period's presentation. These reclassifications did not affect prior periods' net earnings.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Feb. 28, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS [Text Block]	12. SUBSEQUENT EVENTS On March 31, 2020, a further 23,800 shares of common stock were repurchased under the NCIB and cancelled.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Feb. 28, 2021
Accounting Policies [Abstract]
BASIS OF PRESENTATION [Policy Text Block]	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States for interim financial information pursuant to the rules and regulations of the United States Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended February 28, 2021 are not necessarily indicative of the results that may be expected for the year ended August 31, 2021. The balance sheet at August 31, 2020 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, 2020. COVID-19 Pandemic In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses, including the Company's. This outbreak could decrease spending, adversely affect demand for the Company's product and harm the Company's business and results of operations. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company's business or results of operations at this time.
NEW ACCOUNTING PRONOUNCEMENTS [Policy Text Block]	NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). Financial Instruments-Credit Losses (Topic 326) amends guidance on reporting credit losses for assets held on an amortized cost basis and available-for-sale debt securities. For assets held on an amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for the Company on September 1, 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The amendments in this ASU was effective for the Company on September 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

PROPERTY AND EQUIPMENT AND IN_2

PROPERTY AND EQUIPMENT AND INTANGIBLES (Tables)	6 Months Ended
	Feb. 28, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment [Table Text Block]	Accumulated Net book Cost amortization value $ $ $ February 28, 2021 Property and equipment Furniture and fixtures 135,298 114,914 20,384 Computer hardware 279,677 224,268 55,409 Computer software 384,626 319,746 64,880 Leasehold improvement 161,048 131,912 29,136 960,649 790,840 169,809 Intangibles Patents, trademarks and lists 437,607 421,871 15,736 Accumulated Net book Cost amortization value August 31, 2020 $ $ $ Property and equipment Furniture and fixtures 134,629 112,540 22,089 Computer hardware 264,701 215,916 48,785 Computer software 382,852 298,523 84,329 Leasehold improvements 160,295 121,221 39,074 942,477 748,200 194,277 Intangibles Patents, trademarks and lists 436,780 413,828 22,952

RIGHT OF USE ASSET (Tables)

RIGHT OF USE ASSET (Tables)	6 Months Ended
	Feb. 28, 2021
Leases [Abstract]
Schedule of Right of Use Asset Continuity	Right of Use Asset Continuity February 28, 2021 August 31, 2020 $ $ Balance, September 1 403,961 671,911 Lease Inducement — (47,607 ) 403,961 624,304 Depreciation (111,091 ) (213,935 ) Foreign Currency Translation Adjustment 8,358 (6,408 ) Balance, End of Period 301,228 403,961
Schedule of operating lease payments	$ 2021 276,915 2022 93,171 Total lease payments payable 370,086 Less amounts representing interest (20,257 ) Total Operating Lease Liability 349,829 Less current portion of operating lease liability (235,659 ) Long term portion of operating lease liability 114,170
Schedule of Operating Lease Liability Continuity	Operating Lease Liability Continuity February 28, 2021 August 31, 2020 $ $ Balance, September 1 457,324 671,911 Less Lease Payments (133,612 ) (253,040 ) Interest 16,780 44,692 Foreign Currency Translation Adjustment 9,337 (6,239 ) Balance, End of Period 349,829 457,324

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Feb. 28, 2021
Stockholders' Equity Note [Abstract]
Schedule of stock option activity [Table Text Block]	Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Price Contractual Value Options Shares $ Term $ Outstanding at August 31, 2020 400,000 1.35 3.24 — Granted 10,000 1.00 5.00 500 Outstanding at February 28, 2021 410,000 1.34 2.77 16,000 Exercisable at February 28, 2021 285,000 1.40 2.28 9,750
Schedule of non-vested options activity [Table Text Block]	Weighted Average Grant Date Number of Options Fair Value $ Non-vested options at August 31, 2020 203,750 0.48 Granted 10,000 0.34 Vested (88,750 ) 0.48 Non-vested options at February 28, 2021 125,000 0.47
Schedule of stock-based compensation expense [Table Text Block]	2021 2020 $ $ Stock-based compensation General and administrative 9,063 6,336 Sales and marketing 9,573 8,045 Product development 7,347 6,252 Total stock-based compensation 25,983 20,633
Schedule of fair value assumptions using Black-Scholes option-pricing model [Table Text Block]	2021 2020 Expected term of stock options (years) 3.25 3.25 Expected volatility 105.4% 116.2% Risk-free interest rate 0.35% 1.3% Dividend yields — — Weighted average grant date fair value $0.34 $0.49

CONCENTRATIONS AND ECONOMIC D_2

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	6 Months Ended
	Feb. 28, 2021
Geographic Areas, Revenues from External Customers [Abstract]
Schedule of revenue from external Customers [Table Text Block]	Three Months Ended Six Months Ended February 28 February 29 February 28 February 29 2021 2020 2021 2020 $ $ $ $ Play MPE® North America 379,034 305,697 912,494 790,929 Europe 484,159 447,967 992,476 910,397 Australasia 62,999 48,259 138,778 130,837 Africa 938 — 4,466 — Total Play MPE® 927,130 801,923 2,048,214 1,832,163 Clipstream ® North America 3,569 4,806 6,462 20,422 Total revenue 930,699 806,729 2,054,676 1,852,585

SHORT TERM INVESTMENTS (Narrati

SHORT TERM INVESTMENTS (Narrative) (Details)	Feb. 28, 2021
Minimum [Member]
Schedule of Investments [Line Items]
Rate of investment interest	0.10%
Maximum [Member]
Schedule of Investments [Line Items]
Rate of investment interest	2.36%

PROPERTY AND EQUIPMENT AND IN_3

PROPERTY AND EQUIPMENT AND INTANGIBLES (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 26,400	$ 35,478	$ 50,715	$ 67,550

PROPERTY AND EQUIPMENT AND IN_4

PROPERTY AND EQUIPMENT AND INTANGIBLES - Schedule of Property, Plant and Equipment (Details) - USD ($)	Feb. 28, 2021	Aug. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	$ 960,649	$ 942,477
Property and equipment, Accumulated amortization	790,840	748,200
Property and equipment, Net book value	169,809	194,277
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	135,298	134,629
Property and equipment, Accumulated amortization	114,914	112,540
Property and equipment, Net book value	20,384	22,089
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	279,677	264,701
Property and equipment, Accumulated amortization	224,268	215,916
Property and equipment, Net book value	55,409	48,785
Computer software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	384,626	382,852
Property and equipment, Accumulated amortization	319,746	298,523
Property and equipment, Net book value	64,880	84,329
Leasehold improvement [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	161,048	160,295
Property and equipment, Accumulated amortization	131,912	121,221
Property and equipment, Net book value	29,136	39,074
Patents, trademarks and lists [Member]
Property, Plant and Equipment [Line Items]
Intangibles, Cost	437,607	436,780
Intangibles, Accumulated amortization	421,871	413,828
Intangibles, Net book value	$ 15,736	$ 22,952

RIGHT OF USE ASSET (Narrative)

RIGHT OF USE ASSET (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Lessee, Lease, Description [Line Items]
Recognition of right of use asset			$ 671,911
Recognition of lease liabilities			$ 671,911
Weighted-average discount rate - operating leases	8.00%		8.00%
General and administrative expenses, research and development and sales and marketing [Member]
Lessee, Lease, Description [Line Items]
Depreciation	$ 56,455	$ 52,821	$ 111,091	$ 107,457

RIGHT OF USE ASSET - Schedule o

RIGHT OF USE ASSET - Schedule of Right of Use Asset Continuity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2021	Aug. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, Start of period	$ 403,961
Balance, End of Period	301,228	$ 403,961
Adoption of ASC 842 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, Start of period	403,961	671,911
Lease Inducement	0	(47,607)
Right of Use Asset after lease inducement	403,961	624,304
Depreciation	(111,091)	(213,935)
Foreign Currency Translation Adjustment	8,358	(6,408)
Balance, End of Period	$ 301,228	$ 403,961

RIGHT OF USE ASSET - Schedule_2

RIGHT OF USE ASSET - Schedule of operating lease payment committed (Details) - USD ($)	Feb. 28, 2021	Aug. 31, 2020	Aug. 31, 2019
Leases [Abstract]
2021	$ 276,915
2022	93,171
Total lease payments payable	370,086
Less amounts representing interest	(20,257)
Total operating lease liability	349,829	$ 457,324	$ 671,911
Less current portion of operating lease liability	(235,659)	(238,261)
Long term portion of operating lease liability	$ 114,170	$ 219,063

RIGHT OF USE ASSET - Schedule_3

RIGHT OF USE ASSET - Schedule of Operating Lease Liability Continuity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2021	Aug. 31, 2020
Leases [Abstract]
Balance, September 1	$ 457,324	$ 671,911
Less Lease Payments	(133,612)	(253,040)
Interest	16,780	44,692
Foreign Currency Translation Adjustment	9,337	(6,239)
Balance, End of Period	$ 349,829	$ 457,324

STOCKHOLDERS' EQUITY (Narrative

STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($)	Jan. 15, 2021	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020	Aug. 31, 2020	Aug. 31, 2015
Schedule of Stockholders Equity [Line Items]
Common Stock, Shares Authorized		20,000,000		20,000,000		20,000,000
Common stock, par or stated value per share		$ 0.001		$ 0.001		$ 0.001
Number of shares repurchased		41,285		41,285	550,140
Value of shares repurchased		$ 45,004	$ 241,334	$ 45,004	$ 533,223
Common stock reserved for issuance under stock option plan		180,000		180,000			530,000
Compensation cost not yet recognized		$ 43,192		$ 43,192
Compensation cost not yet recognized, period for recognition				8 months 26 days
Stock-based compensation				$ 25,983	20,633
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent				5.00%
Defined Contribution Plan, Maximum Annual Contributions Per Director, Amount				$ 12,500
Defined Contribution Plan, Maximum Annual Contributions for Directors, Amount				25,000
Defined Contribution Plan, Maximum Annual Contributions Amount				400,000
Employee Stock Ownership Plan (ESOP), Compensation Expense				$ 52,857	$ 32,422
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased				$ 0.81	$ 1
Normal Course Issuer Bid ("NCIB") [Member]
Schedule of Stockholders Equity [Line Items]
Number of common shares purchase	522,532

STOCKHOLDERS' EQUITY - Schedule

STOCKHOLDERS' EQUITY - Schedule of Stock Option Activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2021	Aug. 31, 2020
Shares
Outstanding Balance	400,000
Granted	10,000
Outstanding Balance	410,000	400,000
Exercisable	285,000
Weighted Average Exercise Price
Outstanding Balance	$ 1.35
Granted	1
Outstanding Balance	1.34	$ 1.35
Exercisable	$ 1.40
Weighted Average Remaining Contractual Term
Granted	5 years
Weighted Average Remaining Contractual Term Outstanding Balance	2 years 9 months 7 days	3 years 2 months 26 days
Weighted Average Remaining Contractual Term Exercisable	2 years 3 months 10 days
Aggregate Intrinsic Value
Outstanding Balance	$ 0
Granted	500
Outstanding Balance	16,000	$ 0
Exercisable	$ 9,750

STOCKHOLDERS' EQUITY - Schedu_2

STOCKHOLDERS' EQUITY - Schedule of Non-vested Stock Options Activity (Details)	6 Months Ended
	Feb. 28, 2021$ / sharesshares
Stockholders' Equity Note [Abstract]
Outstanding Balance | shares	203,750
Weighted Average Grant Date Fair Value | $ / shares	$ 0.48
Granted | shares	10,000
Options Weighted Average Grant Date Fair Value | $ / shares	$ 0.34
Vested | shares	(88,750)
Vested, Weighted Average Grant Date Fair Value | $ / shares	$ 0.48
Outstanding Balance | shares	125,000
Weighted Average Grant Date Fair Value | $ / shares	$ 0.47

STOCKHOLDERS' EQUITY - Schedu_3

STOCKHOLDERS' EQUITY - Schedule of Stock-based Compensation Expense (Details) - USD ($)	6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
Stockholders' Equity Note [Abstract]
General and administrative	$ 9,063	$ 6,336
Sales and marketing	9,573	8,045
Product development	7,347	6,252
Total stock-based compensation	$ 25,983	$ 20,633

STOCKHOLDERS' EQUITY - Schedu_4

STOCKHOLDERS' EQUITY - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares	6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
Schedule of Stockholders Equity [Line Items]
Expected term of stock options (years)	3 years 3 months	3 years 3 months
Expected volatility	105.40%	116.20%
Risk-free interest rate	0.35%	1.30%
Dividend yields	0.00%	0.00%
Weighted average grant date fair value	$ 0.34	$ 0.49

CONCENTRATIONS AND ECONOMIC D_3

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) - USD ($)	6 Months Ended		12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Aug. 31, 2020
Concentration Risk [Line Items]
Accounts receivable, net of allowance for doubtful accounts	$ 328,131		$ 426,832
Revenue [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	42.00%	44.00%
Trade receivables [Member] | One customer [Member]
Concentration Risk [Line Items]
Accounts receivable, net of allowance for doubtful accounts	$ 145,541
Concentration risk, percentage	44.00%
Trade receivables [Member] | Two customers [Member]
Concentration Risk [Line Items]
Accounts receivable, net of allowance for doubtful accounts			$ 275,620
Concentration risk, percentage			65.00%

CONCENTRATIONS AND ECONOMIC D_4

CONCENTRATIONS AND ECONOMIC DEPENDENCE - Schedule of Revenue by Customer (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Concentration Risk [Line Items]
Revenue	$ 930,699	$ 806,729	$ 2,054,676	$ 1,852,585
Play MPE [Member]
Concentration Risk [Line Items]
Revenue	927,130	801,923	2,048,214	1,832,163
Play MPE [Member] | North America [Member]
Concentration Risk [Line Items]
Revenue	379,034	305,697	912,494	790,929
Play MPE [Member] | Europe [Member]
Concentration Risk [Line Items]
Revenue	484,159	447,967	992,476	910,397
Play MPE [Member] | Australasia [Member]
Concentration Risk [Line Items]
Revenue	62,999	48,259	138,778	130,837
Play MPE [Member] | Africa [Member]
Concentration Risk [Line Items]
Revenue	938	0	4,466	0
Clipstream [Member] | North America [Member]
Concentration Risk [Line Items]
Revenue	$ 3,569	$ 4,806	$ 6,462	$ 20,422

SUBSEQUENT EVENTS (Narrative) (

SUBSEQUENT EVENTS (Narrative) (Details) - shares	1 Months Ended	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Feb. 28, 2021	Feb. 28, 2021	Feb. 29, 2020
Subsequent Event [Line Items]
Number of shares repurchased		41,285	41,285	550,140
Normal Course Issuer Bid ("NCIB") [Member]
Subsequent Event [Line Items]
Number of shares repurchased	23,800