Destiny Media (DSNY) 10-Q 17 Jan 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Nov. 30, 2022	Jan. 11, 2023
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	Nov. 30, 2022
Current Fiscal Year End Date	--08-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		10,122,261
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Document Transition Report	false
Document Quarterly Report	true
Entity File Number	0-28259
Entity Address, Address Line One	428 - 1575 West Georgia Street
Entity Address, City or Town	Vancouver
Entity Address, Postal Zip Code	V6G 2V3
Entity Incorporation, State or Country Code	NV
Entity Address, State or Province	BC
Entity Tax Identification Number	84-1516745
Local Phone Number	609-7736
City Area Code	604
Entity Address, Country	CA

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Current
Cash and cash equivalents	$ 2,246,205	$ 2,095,928
Accounts receivable, net of allowance for doubtful accounts of $36,924 (August 31, 2022- $39,518)	380,092	483,774
Other receivables	36,735	29,600
Prepaid expenses	51,829	83,242
Deposits	32,270	33,305
Total current assets	2,747,131	2,725,849
Property and equipment, net	268,314	311,792
Intangible assets, net	758,313	529,717
Total assets	3,773,758	3,567,358
Current
Accounts payable	105,069	116,290
Accrued liabilities	338,570	319,738
Deferred revenue	16,893	21,043
Total current liabilities	460,532	457,071
Total liabilities	460,532	457,071
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 10,122,261 shares (August 31, 2022 - issued and outstanding 10,122,261 shares)	10,122	10,122
Additional paid-in capital	9,153,005	9,115,848
Accumulated deficit	(5,381,199)	(5,639,465)
Accumulated other comprehensive loss	(468,702)	(376,218)
Total stockholders' equity	3,313,226	3,110,287
Total liabilities and stockholders' equity	$ 3,732,603	$ 3,567,358

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (parentheticals) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 36,924	$ 39,518
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	10,122,261	10,122,261
Common Stock, Shares, Outstanding	10,122,261	10,122,261

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Service revenue	$ 1,020,737	$ 1,134,151
Cost of revenue	129,447	117,563
Gross Margin	$ 891,290	$ 1,016,588
Percentage of gross margin	87%	90%
Operating expenses
General and administrative	$ 163,061	$ 150,624
Sales and marketing	174,226	415,810
Product development	263,426	258,424
Depreciation and amortization	36,379	27,172
Total Operating Expenses	637,092	852,030
Income from operations	254,198	164,558
Other income
Interest and other income	7,668	1,043
Income before income tax	261,866	165,601
Current income tax expense	(3,600)	0
Net income	258,266	165,601
Foreign currency translation adjustments	(92,484)	(38,768)
Total comprehensive income	$ 165,782	$ 126,833
Net income per common share
Basic	$ 0.03	$ 0.02
Diluted	$ 0.03	$ 0.02
Weighted average common shares outstanding:
Basic	10,122,261	10,257,964
Diluted	10,122,261	10,337,338
Hosting costs [Member]
Cost of revenue	$ 27,959	$ 42,184
Internal engineering support [Member]
Cost of revenue	12,570	8,400
Customer support [Member]
Cost of revenue	71,228	47,603
Third party and transaction costs [Member]
Cost of revenue	$ 17,690	$ 19,376

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common stock [Member]	Additional Paid-in capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning Balance at Aug. 31, 2021	$ 10,266	$ 9,157,804	$ (5,788,539)	$ (261,133)	$ 3,118,398
Beginning Balance (Shares) at Aug. 31, 2021	10,265,361
Total comprehensive income			165,601	(38,768)	126,833
Common shares retired	$ (31)	(44,135)			(44,166)
Common shares retired (Shares)	(30,300)
Stock-based compensation		25,906			25,906
Ending Balance at Nov. 30, 2021	$ 10,235	9,139,575	(5,622,938)	(299,901)	3,226,971
Ending Balance (Shares) at Nov. 30, 2021	10,235,061
Beginning Balance at Aug. 31, 2022	$ 10,122	9,115,848	(5,639,465)	(376,218)	3,110,287
Beginning Balance (Shares) at Aug. 31, 2022	10,122,261
Total comprehensive income			258,266	(92,484)	165,782
Stock-based compensation		37,157			37,157
Ending Balance at Nov. 30, 2022	$ 10,122	$ 9,153,005	$ (5,381,199)	$ (468,702)	$ 3,313,226
Ending Balance (Shares) at Nov. 30, 2022	10,122,261

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Operating Activities
Net income	$ 258,266	$ 165,601
Adjustments to reconcile net income to net cash provided (used) in operations:
Depreciation and amortization	36,379	27,172
Stock-based compensation	37,157	25,906
Allowance for doubtful accounts	1,370	0
Unrealized foreign exchange loss	(12,869)	3,436
Changes in non-cash working capital:
Accounts receivable	99,817	(177,303)
Other receivables	(6,951)	(6,212)
Prepaid expenses and deposits	30,234	(4,971)
Accounts payable	442	(94,434)
Accrued liabilities	19,200	12,709
Deferred revenue	(3,508)	(4,530)
Net cash provided by (used in) operating activities	459,537	(52,626)
Investing Activities
Development of software	(248,309)	(72,290)
Purchase of property, equipment, and intangibles	0	(7,997)
Net cash used in investing activities	(248,309)	(80,287)
Financing Activities
Common stock repurchased for cancellation	0	(44,166)
Net cash used in financing activities	0	(44,166)
Effect of foreign exchange rate changes on cash	(60,951)	(39,157)
Net increase (decrease) in cash and cash equivalents	150,277	(216,236)
Cash and cash equivalents, beginning of period	2,095,928	2,752,662
Cash and cash equivalents, end of period	2,246,205	2,536,426
Supplementary disclosure:
Interest paid	0	0
Income taxes paid	$ 3,600	$ 0

ORGANIZATION

ORGANIZATION	3 Months Ended
	Nov. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION [Text Block]	NOTE 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 (the "TSX") 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, 2022
Basis Of Presentation [Abstract]
BASIS OF PRESENTATION [Text Block]	2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the consolidated accounts of the Company and its wholly owned subsidiaries: Destiny Software Productions, Inc. ("DSNY"), MPE Distributions, Inc. ("MPE"), Tonality, Inc. ("Tonality"), and Sonox Digital Inc. ("Sonox"). All intercompany transactions have been eliminated on consolidation. The accompanying unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with generally accepted accounting principles in the U.S. ("U.S. GAAP"). The unaudited condensed consolidated financial statements presented in this Quarterly Report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K filed with the SEC on November 14, 2022 (the "2022 Form 10-K"). The balance sheet as of August 31, 2022 was derived from audited consolidated financial statements included in the 2022 Form 10-K but does not include all disclosures required by U.S. GAAP for complete financial statements. The Company's significant accounting policies are described in Note 2 to those consolidated financial statements. Interim results may not be indicative of the results that may be expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from these interim financial statements. The unaudited condensed consolidated financial statements reflect all adjustments which in the opinion of management are necessary for a fair statement of results of operations, financial condition, cash flows and stockholders' equity for the periods presented. Except as otherwise disclosed, all such adjustments are of a normal recurring nature. Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make use of certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant estimates are related to the recoverability of long-term assets including property and equipment, intangible assets, amortization expense, and valuation of stock-based compensation.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS	3 Months Ended
	Nov. 30, 2022
Cash and Cash Equivalents [Abstract]
CASH AND CASH EQUIVALENTS [Text Block]	3. CASH AND CASH EQUIVALENTS The Company's cash includes cash in readily available checking accounts. The Company's cash equivalents consist of one-year Guaranteed Investment Certificates ("GIC") with a major Canadian financial institution that earn interest at variable interest rates ranging from 0.10% - 2.36% and had reached their maturity.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Nov. 30, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT [Text Block]	4. PROPERTY AND EQUIPMENT November 30, 2022 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 132,130 $ (119,161 ) $ 12,969 Computer hardware 310,306 (255,705 ) 54,601 Computer software 652,753 (452,009 ) 200,744 Leasehold improvements - - - Total property and equipment $ 1,095,189 $ (826,875 ) $ 268,314 August 31, 2022 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 136,369 $ (122,279 ) $ 14,090 Computer hardware 320,260 (259,339 ) 60,921 Computer software 673,691 (436,910 ) 236,781 Leasehold improvements - - - Total property and equipment $ 1,130,320 $ (818,528 ) $ 311,792 Depreciation and amortization for the three months ended November 30, 2022 was $33,902 (November 30, 2021 - $16,905).

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	3 Months Ended
	Nov. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET [Text Block]	5. INTANGIBLE ASSETS, NET November 30, 2022 Intangible Assets Cost Accumulated Net Book Value Software under development $ 747,815 $ - $ 747,815 Patents, trademarks, and lists 449,916 (439,418 ) 10,499 Total intangible assets $ 1,195,765 $ (439,418 ) $ 758,313 August 31, 2022 Intangible Assets Cost Accumulated Net Book Value Software under development $ 516,397 $ - $ 516,397 Patents, trademarks, and lists 464,285 (450,965 ) 13,320 Total intangible assets $ 980,682 $ (450,965 ) $ 529,717 Depreciation and amortization for the three months ended November 30, 2022 was $2,477 (November 30, 2021 - $10,267).

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Nov. 30, 2022
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. During the three months ended November 30, 2022 the Company did not issue any common stock . [b] Stock option plans Pursuant to the Company's 2015 Stock Option Plan (the "2015 Plan"), 530,000 shares of common stock have been reserved for issuance. A total of 420,000 common shares remain eligible for issuance under the 2015 Plan. On February 18, 2022, the Company received shareholder approval for the 2022 Stock Option Plan (the "2022 Plan") (together with the 2015 Plan, the "Plans"), whereby 1,000,000 common shares are reserved for issuance. As of November 30, 2022, 524,000 common shares remain eligible for issuance under the 2022 Plan. The options generally vest over a range of periods from the date of grant, some are immediate, and others vest over 12 or 24 months. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the underlying common shares 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 November 30, 2022, and changes during the period were the following: Number of Weighted Average Weighted Aggregate Intrinsic Outstanding at August 31, 2021 410,000 $ 1.34 2.26 $ - Granted 561,000 $ 1.50 5.00 $ - Forfeited (91,583 ) $ 1.38 3.85 $ - Repurchased (82,500 ) $ 1.00 2.25 $ - Expired (203,917 ) $ 1.46 0.50 $ - Outstanding at August 31, 2022 593,000 $ 1.49 3.79 $ - Forfeited (4,250 ) $ 1.50 3.92 $ - Expired (2,750 ) $ 1.50 3.92 $ - Outstanding at November 30, 2022 586,000 $ 1.49 3.54 $ - Exercisable at November 30, 2022 330,083 $ 1.48 3.24 $ - 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 as of November 30, 2022. The following table summarizes information regarding the non-vested options outstanding as of November 30, 2022, and changes during the period: Number of Options Weighted Non-vested options at August 31, 2021 98,750 $ 0.48 Granted 561,000 $ 1.50 Forfeited (91,583 ) $ 1.38 Vested (239,958 ) $ 1.44 Expired (7,667 ) $ 1.50 Non-vested options at August 31, 2022 320,542 $ 1.50 Vested (60,375 ) $ 1.50 Forfeited (4,250 ) $ 1.50 Non-vested options at November 30, 2022 255,917 $ 1.50 As of November 30, 2022, there was $141,020 (November 30, 2021 - $534,838) 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 1 year (November 30, 2021 - 2.21 years). During the three months ended November 30, 2022, the total stock-based compensation expense is reported in the statement of comprehensive income as follows: Three Months Ended November 30 , Stock-based compensation 2022 2021 General and administrative $ 19,149 $ 2,424 Sales and marketing 6,686 13,950 Product development 11,322 9,532 Total stock-based compensation $ 37,157 $ 25,906 [c] Employee Stock Purchase Plan The Company's 2011 Employee Stock Purchase Plan (the "ESPP") became effective on February 22, 2011. Under the ESPP, employees of the Company can contribute up to 5% of their annual salary into a pool which is matched equally by the Company in order to purchase the Company's common shares under certain terms. Directors can 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 ESPP on behalf of the Company and the participants. During the three-month period ended November 30, 2022, the Company recognized compensation expense of $18,672 (November 30, 2021 - $17,227) in salaries and wages on the consolidated statement of comprehensive income in respect of the ESPP, representing the Company's employee matching of cash contributions to the ESPP. The shares were purchased on the open market at an average price of $0.53 (November 30, 2021 - $1.48). The shares are held in trust by the Company for a period of one year from the date of purchase. [d] Earnings Per Share Net income (loss) per common share (basic) is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Net income (loss) per common share (diluted) is calculated by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding common share equivalents. This method requires that the dilutive effect of outstanding options and warrants issued be calculated using the treasury stock method. Under the treasury stock method, all common share equivalents have been exercised at the beginning of the period (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase common shares of the Company at the average trading price of common shares during the period, but only if dilutive. For the three ended November 30, 2022 the outstanding options, in the amount of 586,000, were anti-dilutive and have been excluded from the calculation of diluted income (loss) per share.

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Nov. 30, 2022
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. Risk and Uncertainties Starting in late 2019, a novel strain of the coronavirus, or COVID-19, began to rapidly spread around the world. At this time, there continues to be significant volatility and uncertainty relating to the full extent to which the COVID-19 pandemic and the various responses to it will impact our business, operations, and financial results. Most countries have at various times instituted quarantines, restrictions on travel, "stay at home" rules, social distancing measures and restrictions on the types of businesses that could continue to operate, as well as guidance in response to the pandemic and the need to contain it. The spread of COVID-19 has adversely impacted global economic activity and has contributed to significant volatility and negative pressure in financial markets. The pandemic has resulted, and may continue to result, in a significant disruption of global financial markets, which may reduce our ability to access capital in the future, which could negatively affect our liquidity. If the COVID-19 pandemic does not continue to slow and the spread of COVID-19 is not contained, our business operations, including those of our customers, could be interrupted. The duration of any business disruption cannot be reasonably estimated at this time but may materially affect our ability to operate our business and result in additional costs. It is not possible to reliably measure or quantify the impact COVID-19 has had on the financial results of the Company. If the COVID-19 pandemic continues for an extended period, it may materially adversely impact business operations and, consequently, future financial results.

CONCENTRATIONS AND ECONOMIC DEP

CONCENTRATIONS AND ECONOMIC DEPENDENCE	3 Months Ended
	Nov. 30, 2022
Geographic Areas, Revenues from External Customers [Abstract]
CONCENTRATIONS AND ECONOMIC DEPENDENCE [Text Block]	8. 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 earned during the three months ended November 30, 2022 and 2021, by product and location of customer, was as follows: Three Months Ended November 30, 2022 2021 Play MPE® North America $ 534,844 $ 577,149 Europe 438,681 484,336 Australasia 40,024 64,032 Africa 7,188 6,954 Total Play MPE® 1,020,737 1,132,471 Clipstream® North America - 1,680 Total $ 1,020,737 $ 1,134,151 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 three months ended November 30, 2022, the Company generated 39% of total revenue from one customer (November 30, 2021 - 37%). It is in management's opinion that the Company is not exposed to significant credit risk. As at November 30, 2022, one customer represented $137,858 (or 35.7%) of the trade receivables balance (November 30, 2021 - one customer represented $272,449 or 48%). The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Nov. 30, 2022
Accounting Policies [Abstract]
Use of Estimates [Policy Text Block]	Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make use of certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant estimates are related to the recoverability of long-term assets including property and equipment, intangible assets, amortization expense, and valuation of stock-based compensation.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Nov. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment [Table Text Block]	November 30, 2022 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 132,130 $ (119,161 ) $ 12,969 Computer hardware 310,306 (255,705 ) 54,601 Computer software 652,753 (452,009 ) 200,744 Leasehold improvements - - - Total property and equipment $ 1,095,189 $ (826,875 ) $ 268,314 August 31, 2022 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 136,369 $ (122,279 ) $ 14,090 Computer hardware 320,260 (259,339 ) 60,921 Computer software 673,691 (436,910 ) 236,781 Leasehold improvements - - - Total property and equipment $ 1,130,320 $ (818,528 ) $ 311,792

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	3 Months Ended
	Nov. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of finite-lived intangible assets [Table Text Block]	November 30, 2022 Intangible Assets Cost Accumulated Net Book Value Software under development $ 747,815 $ - $ 747,815 Patents, trademarks, and lists 449,916 (439,418 ) 10,499 Total intangible assets $ 1,195,765 $ (439,418 ) $ 758,313 August 31, 2022 Intangible Assets Cost Accumulated Net Book Value Software under development $ 516,397 $ - $ 516,397 Patents, trademarks, and lists 464,285 (450,965 ) 13,320 Total intangible assets $ 980,682 $ (450,965 ) $ 529,717

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Nov. 30, 2022
Stockholders' Equity Note [Abstract]
Schedule of stock option activity [Table Text Block]	Number of Weighted Average Weighted Aggregate Intrinsic Outstanding at August 31, 2021 410,000 $ 1.34 2.26 $ - Granted 561,000 $ 1.50 5.00 $ - Forfeited (91,583 ) $ 1.38 3.85 $ - Repurchased (82,500 ) $ 1.00 2.25 $ - Expired (203,917 ) $ 1.46 0.50 $ - Outstanding at August 31, 2022 593,000 $ 1.49 3.79 $ - Forfeited (4,250 ) $ 1.50 3.92 $ - Expired (2,750 ) $ 1.50 3.92 $ - Outstanding at November 30, 2022 586,000 $ 1.49 3.54 $ - Exercisable at November 30, 2022 330,083 $ 1.48 3.24 $ -
Schedule of non-vested options activity [Table Text Block]	Number of Options Weighted Non-vested options at August 31, 2021 98,750 $ 0.48 Granted 561,000 $ 1.50 Forfeited (91,583 ) $ 1.38 Vested (239,958 ) $ 1.44 Expired (7,667 ) $ 1.50 Non-vested options at August 31, 2022 320,542 $ 1.50 Vested (60,375 ) $ 1.50 Forfeited (4,250 ) $ 1.50 Non-vested options at November 30, 2022 255,917 $ 1.50
Schedule of stock-based compensation expense [Table Text Block]	Three Months Ended November 30 , Stock-based compensation 2022 2021 General and administrative $ 19,149 $ 2,424 Sales and marketing 6,686 13,950 Product development 11,322 9,532 Total stock-based compensation $ 37,157 $ 25,906

CONCENTRATIONS AND ECONOMIC D_2

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables)	3 Months Ended
	Nov. 30, 2022
Geographic Areas, Revenues from External Customers [Abstract]
Schedule of revenue from external customers [Table Text Block]	Three Months Ended November 30, 2022 2021 Play MPE® North America $ 534,844 $ 577,149 Europe 438,681 484,336 Australasia 40,024 64,032 Africa 7,188 6,954 Total Play MPE® 1,020,737 1,132,471 Clipstream® North America - 1,680 Total $ 1,020,737 $ 1,134,151

CASH AND CASH EQUIVALENTS (Narr

CASH AND CASH EQUIVALENTS (Narrative) (Details)	Nov. 30, 2022
Minimum [Member]
Schedule of Investments [Line Items]
Rate of investment interest	10%
Maximum [Member]
Schedule of Investments [Line Items]
Rate of investment interest	236%

PROPERTY AND EQUIPMENT (Narrati

PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 33,902	$ 16,905

PROPERTY AND EQUIPMENT - Schedu

PROPERTY AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	$ 1,095,189	$ 1,130,320
Property and equipment, Accumulated amortization	(826,875)	(818,528)
Property and equipment, Net book value	268,314	311,792
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	132,130	136,369
Property and equipment, Accumulated amortization	(119,161)	(122,279)
Property and equipment, Net book value	12,969	14,090
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	310,306	320,260
Property and equipment, Accumulated amortization	(255,705)	(259,339)
Property and equipment, Net book value	54,601	60,921
Computer software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	652,753	673,691
Property and equipment, Accumulated amortization	(452,009)	(436,910)
Property and equipment, Net book value	200,744	236,781
Leasehold improvement [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	0	0
Property and equipment, Accumulated amortization	0	0
Property and equipment, Net book value	$ 0	$ 0

INTANGIBLE ASSETS, NET (Narrati

INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 2,477	$ 10,267

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of finite-lived intangible assets (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangibles, Cost	$ 1,195,765	$ 980,682
Intangibles, Accumulated Amortization	(439,418)	(450,965)
Intangibles, Net book value	758,313	529,717
Software under development [Member]
Finite-Lived Intangible Assets [Line Items]
Intangibles, Cost	747,815	516,397
Intangibles, Accumulated Amortization	0	0
Intangibles, Net book value	747,815	516,397
Patents, trademarks and lists [Member]
Finite-Lived Intangible Assets [Line Items]
Intangibles, Cost	449,916	464,285
Intangibles, Accumulated Amortization	(439,418)	(450,965)
Intangibles, Net book value	$ 10,499	$ 13,320

STOCKHOLDERS' EQUITY (Narrative

STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2015
Schedule of Stockholders Equity [Line Items]
Common Stock, Shares, Issued	10,122,261		10,122,261
Common Stock, Shares Authorized	20,000,000		20,000,000
Common stock, par or stated value per share	$ 0.001		$ 0.001
Compensation cost not yet recognized	$ 141,020	$ 534,838
Compensation cost not yet recognized, period for recognition	1 year	2 years 2 months 15 days
Stock-based compensation	$ 37,157	$ 25,906
Defined contribution plan, maximum annual contributions per director,amount	12,500
Defined contribution plan, combine maximum annual contributions for directors,amount	25,000
Defined contribution plan, maximum annual contributions amount	400,000
Employee stock ownership plan (ESOP), compensation expense	$ 18,672	$ 17,227
Employee stock ownership plan (ESOP), weighted average purchase price of shares purchased	$ 0.53	$ 1.48
Aggregate of stock options outstanding.	586,000		593,000	410,000
2015 Stock Option Plan [Member]
Schedule of Stockholders Equity [Line Items]
Common stock reserved for issuance under stock option plan					530,000
2022 Stock Option Plan [Member]
Schedule of Stockholders Equity [Line Items]
Common stock shares reserved for issuance under stock option plan	524,000				420,000
Common stock reserved for issuance under stock option plan	1,000,000

STOCKHOLDERS' EQUITY - Schedule

STOCKHOLDERS' EQUITY - Schedule of Stock Option Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Nov. 30, 2022	Aug. 31, 2022	Aug. 31, 2021
Shares
Outstanding Balance	593,000	410,000
Granted		561,000
Forfeited	(4,250)	(91,583)
Repurchased		(82,500)
Expired	(2,750)	(203,917)
Outstanding Balance	586,000	593,000	410,000
Exercisable	330,083
Weighted Average Exercise Price
Outstanding Balance	$ 1.49	$ 1.34
Granted		1.5
Forfeited	1.5	1.38
Repurchased		1
Expired	1.5	1.46
Outstanding Balance	1.49	$ 1.49	$ 1.34
Exercisable	$ 1.48
Weighted Average Remaining Contractual Term
Granted		5 years
Forfeited	3 years 11 months 1 day	3 years 10 months 6 days
Repurchased		2 years 3 months
Expired	3 years 11 months 1 day	6 months
Weighted Average Remaining Contractual Term Outstanding Balance	3 years 6 months 14 days	3 years 9 months 14 days	2 years 3 months 3 days
Weighted Average Remaining Contractual Term Exercisable	3 years 2 months 26 days
Aggregate Intrinsic Value
Outstanding Balance	$ 0	$ 0
Outstanding Balance	0	$ 0	$ 0
Exercisable	$ 0

STOCKHOLDERS' EQUITY - Schedu_2

STOCKHOLDERS' EQUITY - Schedule of Non-vested Stock Options Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Nov. 30, 2022	Aug. 31, 2022
Stockholders' Equity Note [Abstract]
Outstanding Balance	320,542	98,750
Weighted Average Grant Date Fair Value	$ 1.5	$ 0.48
Granted		561,000
Options Weighted Average Grant Date Fair Value		$ 1.5
Vested	(60,375)	(239,958)
Vested, Weighted Average Grant Date Fair Value	$ 1.5	$ 1.44
Expired		(7,667)
Expired, Weighted Average Grant Date Fair Value		$ 1.5
Forfeited	(4,250)	(91,583)
Forfeited, Weighted Average Grant Date Fair Value	$ (1.5)	$ (1.38)
Outstanding Balance	255,917	320,542
Weighted Average Grant Date Fair Value	$ 1.5	$ 1.5

STOCKHOLDERS' EQUITY - Schedu_3

STOCKHOLDERS' EQUITY - Schedule of Stock-based Compensation Expense (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Stockholders' Equity Note [Abstract]
General and administrative	$ 19,149	$ 2,424
Sales and marketing	6,686	13,950
Product development	11,322	9,532
Total stock-based compensation	$ 37,157	$ 25,906

CONCENTRATIONS AND ECONOMIC D_3

CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Nov. 30, 2022	Nov. 30, 2021	Aug. 31, 2022
Concentration Risk [Line Items]
Accounts receivable, net of allowance for doubtful accounts	$ 380,092		$ 483,774
Customer Concentration Risk [Member] | Customer One [Member] | Revenue Benchmark [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	39%	37%
Customer Concentration Risk [Member] | Customer One [Member] | Trade Accounts Receivable [Member]
Concentration Risk [Line Items]
Accounts receivable, net of allowance for doubtful accounts	$ 137,858		$ 272,449
Concentration risk, percentage	35.70%		48%

CONCENTRATIONS AND ECONOMIC D_4

CONCENTRATIONS AND ECONOMIC DEPENDENCE - Schedule of Revenue by Customer (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Concentration Risk [Line Items]
Revenue	$ 1,020,737	$ 1,134,151
Play MPE [Member]
Concentration Risk [Line Items]
Revenue	1,020,737	1,132,471
Play MPE [Member] | North America [Member]
Concentration Risk [Line Items]
Revenue	534,844	577,149
Play MPE [Member] | Europe [Member]
Concentration Risk [Line Items]
Revenue	438,681	484,336
Play MPE [Member] | Australasia [Member]
Concentration Risk [Line Items]
Revenue	40,024	64,032
Play MPE [Member] | Africa [Member]
Concentration Risk [Line Items]
Revenue	7,188	6,954
Clipstream [Member] | North America [Member]
Concentration Risk [Line Items]
Revenue	$ 0	$ 1,680