Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2023 | Jul. 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 | May 31, 2023 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,116,576 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
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 ($) | May 31, 2023 | Aug. 31, 2022 |
Current | ||
Cash and cash equivalents | $ 1,825,172 | $ 2,095,928 |
Accounts receivable, net of allowance for doubtful accounts of $41,166 (August 31, 2022 - $39,518) | 561,424 | 483,774 |
Other receivables | 51,042 | 29,600 |
Prepaid expenses | 47,073 | 83,242 |
Deposits | 32,083 | 33,305 |
Total current assets | 2,516,794 | 2,725,849 |
Property and equipment, net | 206,427 | 311,792 |
Intangible assets, net | 1,199,648 | 529,717 |
Total assets | 3,922,869 | 3,567,358 |
Current | ||
Accounts payable | 108,779 | 116,290 |
Accrued liabilities | 300,116 | 319,738 |
Deferred revenue | 40,758 | 21,043 |
Total current liabilities | 449,653 | 457,071 |
Total liabilities | 449,653 | 457,071 |
Contingencies | ||
Stockholders' equity | ||
Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 10,116,576 shares (August 31, 2022 - 10,122,261 shares) | 10,122 | 10,122 |
Additional paid-in capital | 9,224,712 | 9,115,848 |
Accumulated deficit | (5,275,423) | (5,639,465) |
Accumulated other comprehensive loss | (486,195) | (376,218) |
Total stockholders' equity | 3,473,216 | 3,110,287 |
Total liabilities and stockholders' equity | $ 3,922,869 | $ 3,567,358 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 41,166 | $ 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 | 10,116,576 | 10,122,261 |
Common stock, shares outstanding | 10,116,576 | 10,122,261 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Service revenue | $ 1,068,007 | $ 999,282 | $ 2,987,786 | $ 3,029,853 |
Cost of revenue | 133,753 | 209,605 | 389,794 | 478,479 |
Gross margin | 934,254 | 789,677 | 2,597,992 | 2,551,374 |
Operating expenses | ||||
General and administrative | 314,387 | 318,995 | 652,793 | 800,173 |
Sales and marketing | 237,834 | 113,172 | 670,360 | 772,163 |
Product development | 247,392 | 326,125 | 823,722 | 944,941 |
Depreciation and amortization | 37,182 | 36,313 | 109,513 | 90,059 |
Total operating expenses | 836,795 | 794,605 | 2,256,388 | 2,607,336 |
Income (loss) from operations | 97,459 | (4,928) | 341,604 | (55,962) |
Other income | ||||
Interest and other income | 9,593 | 1,686 | 26,038 | 4,693 |
Gain on disposal of assets | 0 | 0 | 0 | 11,018 |
Net income (loss) before income tax | 107,052 | (3,242) | 367,642 | (40,251) |
Current income tax expense | 0 | 0 | (3,600) | 0 |
Net income (loss) | 107,052 | (3,242) | 364,042 | (40,251) |
Foreign currency translation adjustments | 1,429 | 28,168 | (109,977) | (8,639) |
Total comprehensive income (loss) | $ 108,481 | $ 24,926 | $ 254,065 | $ (48,890) |
Net income (loss) per common share | ||||
Basic | $ 0.01 | $ 0 | $ 0.04 | $ 0 |
Diluted | $ 0.01 | $ 0 | $ 0.04 | $ 0 |
Hosting costs [Member] | ||||
Cost of revenue | $ 30,555 | $ 50,604 | $ 84,040 | $ 138,399 |
Internal engineering support [Member] | ||||
Cost of revenue | 12,707 | 21,497 | 38,160 | 43,709 |
Customer support [Member] | ||||
Cost of revenue | 72,001 | 121,816 | 216,237 | 247,685 |
Third party and transaction costs [Member] | ||||
Cost of revenue | $ 18,490 | $ 15,688 | $ 51,357 | $ 48,686 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common stock [Member] | Additional Paid-in capital [Member] | 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 (loss) | (40,251) | (8,639) | (48,890) | ||
Stock-based compensation | 169,857 | 169,857 | |||
Stock options repurchased and retired | (11,275) | (11,275) | |||
Common shares held for retirement | $ (144) | (179,257) | (179,401) | ||
Common shares held for retirement (Shares) | (143,100) | ||||
Ending Balance at May. 31, 2022 | $ 10,122 | 9,137,129 | (5,828,790) | (269,772) | 3,048,689 |
Ending Balance (Shares) at May. 31, 2022 | 10,122,261 | ||||
Beginning Balance at Feb. 28, 2022 | $ 10,122 | 9,064,465 | (5,825,548) | (297,940) | 2,951,099 |
Beginning Balance (Shares) at Feb. 28, 2022 | 10,122,261 | ||||
Total comprehensive income (loss) | (3,242) | 28,168 | 24,926 | ||
Stock-based compensation | 75,163 | 75,163 | |||
Stock options repurchased and retired | (2,499) | (2,499) | |||
Ending Balance at May. 31, 2022 | $ 10,122 | 9,137,129 | (5,828,790) | (269,772) | 3,048,689 |
Ending Balance (Shares) at May. 31, 2022 | 10,122,261 | ||||
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 (loss) | 364,042 | (109,977) | 254,065 | ||
Stock-based compensation | 113,327 | $ 113,327 | |||
Stock options repurchased and retired (Shares) | 5,685 | ||||
Common shares held for retirement | (4,463) | $ (4,463) | |||
Common shares held for retirement (Shares) | (5,685) | ||||
Ending Balance at May. 31, 2023 | $ 10,122 | 9,224,712 | (5,275,423) | (486,195) | 3,473,216 |
Ending Balance (Shares) at May. 31, 2023 | 10,116,576 | ||||
Beginning Balance at Feb. 28, 2023 | $ 10,122 | 9,191,090 | (5,382,475) | (487,624) | 3,331,113 |
Beginning Balance (Shares) at Feb. 28, 2023 | 10,122,261 | ||||
Total comprehensive income (loss) | 107,052 | 1,429 | 108,481 | ||
Stock-based compensation | 38,085 | 38,085 | |||
Common shares held for retirement | (4,463) | (4,463) | |||
Common shares held for retirement (Shares) | (5,685) | ||||
Ending Balance at May. 31, 2023 | $ 10,122 | $ 9,224,712 | $ (5,275,423) | $ (486,195) | $ 3,473,216 |
Ending Balance (Shares) at May. 31, 2023 | 10,116,576 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Operating Activities | ||
Net income (loss) | $ 364,042 | $ (40,251) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and amortization | 109,513 | 90,059 |
Stock-based compensation | 113,327 | 169,857 |
Allowance for doubtful accounts | (3,119) | 18,772 |
Gain on disposal of assets | 0 | (11,018) |
Unrealized foreign exchange loss | 0 | 29,607 |
Changes in non-cash working capital: | ||
Accounts receivable | (95,790) | (457,136) |
Other receivables | (22,283) | 29,680 |
Prepaid expenses and deposits | 34,795 | 38,382 |
Accounts payable | 16,787 | (59,699) |
Accrued liabilities | (30,082) | (33,315) |
Deferred revenue | 20,626 | 17,045 |
Operating lease liability | 0 | (9,498) |
Net cash provided by (used in) operating activities | 507,816 | (217,515) |
Investing Activities | ||
Development of software | (689,691) | (88,099) |
Purchase of property, equipment, and intangibles | (19,254) | (294,916) |
Net cash used in investing activities | (708,945) | (383,015) |
Financing Activities | ||
Repurchase of common stock for cancellation | (4,463) | (179,401) |
Repurchase of stock options for retirement | 0 | (11,275) |
Net cash used in financing activities | (4,463) | (190,676) |
Effect of foreign exchange rate changes on cash | (65,164) | (8,002) |
Net decrease in cash and cash equivalents | (270,756) | (799,208) |
Cash and cash equivalents, beginning of period | 2,095,928 | 2,752,662 |
Cash and cash equivalents, end of period | 1,825,172 | 1,953,454 |
Supplementary disclosure: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ (3,600) | $ 0 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
May 31, 2023 | |
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 | 9 Months Ended |
May 31, 2023 | |
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. All figures are in United States dollars unless otherwise stated. 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 unaudited condensed 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 condensed 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 intangible assets, amortization expense, and valuation of stock-based compensation. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 9 Months Ended |
May 31, 2023 | |
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 are in a highly liquid cashable instrument with a major Canadian financial institution paying variable interest rates around 4.30%. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET [Text Block] | 4. PROPERTY AND EQUIPMENT, NET May 31, 2023 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 131,364 $ (119,828 ) $ 11,536 Computer hardware 315,507 (263,728 ) 51,779 Computer software 649,708 (506,596 ) 143,112 Total property and equipment $ 1,096,579 $ (890,152 ) $ 206,427 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 Total property and equipment $ 1,130,320 $ (818,528 ) $ 311,792 Depreciation and amortization for the three and nine months ended May 31, 2023 was $34,315 and $102,401, respectively (three and nine months ended May 31, 2022 - $32,851 and $66,190, respectively). |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET [Text Block] | 5. INTANGIBLE ASSETS, NET May 31, 2023 Intangible Assets Cost Accumulated Net Book Value Software under development $ 1,182,477 $ - $ 1,182,477 Patents, trademarks, and lists 458,698 (441,527 ) 17,171 Total intangible assets $ 1,641,175 $ (441,527 ) $ 1,199,648 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 and nine months ended May 31, 2023 was $2,867 and $7,112, respectively (three and nine months ended May 31, 2022 - $3,462 and $23,869, respectively). |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
May 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY [Text Block] | 6. STOCKHOLDERS' EQUITY [a] Common stock issued and authorized On May 1, 2023, the Company commenced a Normal Course Issuer Bid ("NCIB"), pursuant to which the Company may purchase up to a maximum of 599,092 common shares, through the TSX Venture Exchange 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 nine-month period ended May 31, 2022, the Company did not issue any common stock. During the nine-month period ended May 31, 2023, the Company repurchased and cancelled 5,685 common shares for $4,463. 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 41,250 options to be granted 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 at May 31, 2023, 549,000 options to be granted 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 options 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 May 31, 2023, and changes during the period were the following: Number of Weighted Average Weighted Average 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 as at August 31, 2022 593,000 $ 1.49 3.79 $ - Forfeited (19,806 ) $ 1.50 3.68 $ - Expired (17,194 ) $ 1.50 3.68 $ - Outstanding at May 31, 2023 563,000 $ 1.49 3.15 $ - Exercisable at May 31, 2023 441,208 $ 1.49 3.16 $ - 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 May 31, 2023. As of May 31, 2023, there was $72,153 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 1.5 years. [b] Stock option plans During the three and nine months ended May 31, 2023, the total stock-based compensation expense is reported in the condensed consolidated statement of comprehensive income (loss) as follows: Three Months Ended May 31, Nine Months Ended May 31, Stock-based compensation 2023 2022 2023 2022 General and administrative $ 19,177 $ 53,916 $ 57,503 $ 82,324 Sales and marketing 7,587 1,151 21,860 39,029 Product development 11,321 20,096 33,964 48,504 Total stock-based compensation $ 38,085 $ 75,163 $ 113,327 $ 169,857 [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 TSX Venture 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 and nine months period ended May 31, 2023, the Company recognized compensation expense of $112,046 and $182,216 respectfully (May 31, 2022 - $18,429 and $95,956) in salaries and wages on the condensed consolidated statement of comprehensive income (loss) 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 $1.09 (May 31, 2022 - $1.25). 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 and nine months ended May 31, 2023 the outstanding options, in the amount of 549,000, were anti-dilutive and have been excluded from the calculation of diluted income (loss) per share. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
May 31, 2023 | |
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. |
CONCENTRATIONS AND ECONOMIC DEP
CONCENTRATIONS AND ECONOMIC DEPENDENCE | 9 Months Ended |
May 31, 2023 | |
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 and nine months ended May 31, 2023 and 2022, by product and location of customer, was as follows: Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 Play MPE® North America $ 534,667 $ 498,465 $ 1,476,444 $ 1,460,020 Europe 477,912 461,703 1,367,190 1,414,265 Australasia 49,553 31,781 123,402 133,476 Africa 5,875 6,563 20,750 19,642 Total Play MPE® 1,068,007 998,512 2,987,786 3,027,403 Clipstream® North America - 770 - 2,450 Total $ 1,068,007 $ 999,282 $ 2,987,786 $ 3,029,853 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 nine months ended May 31, 2023, the Company generated 42% of total revenue from one customer (May 31, 2022 - 41%). It is in management's opinion that the Company is not exposed to significant credit risk. As at May 31, 2023, one customer represented $185,858 (or 33%) of the trade receivables balance (August 31, 2022, one customer represented $283,144 (or 59%)). The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
May 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS [Text Block] | 9. SUBSEQUENT EVENTS On June 15, 2023, the Company successfully resolved the first of two outstanding wrongful dismissal claims from 2017, both which pertained to the same case. In a ruling in the Supreme Court of British Columbia, the Court found the Company had just cause to dismiss the plaintiff. The Company was awarded costs as a result. The cost award is not currently accrued in these financial statements because the cost has not been determined and the collection is uncertain. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of the unaudited condensed 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 condensed 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 intangible assets, amortization expense, and valuation of stock-based compensation. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment [Table Text Block] | May 31, 2023 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 131,364 $ (119,828 ) $ 11,536 Computer hardware 315,507 (263,728 ) 51,779 Computer software 649,708 (506,596 ) 143,112 Total property and equipment $ 1,096,579 $ (890,152 ) $ 206,427 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 Total property and equipment $ 1,130,320 $ (818,528 ) $ 311,792 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets [Table Text Block] | May 31, 2023 Intangible Assets Cost Accumulated Net Book Value Software under development $ 1,182,477 $ - $ 1,182,477 Patents, trademarks, and lists 458,698 (441,527 ) 17,171 Total intangible assets $ 1,641,175 $ (441,527 ) $ 1,199,648 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) | 9 Months Ended |
May 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock option activity [Table Text Block] | Number of Weighted Average Weighted Average 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 as at August 31, 2022 593,000 $ 1.49 3.79 $ - Forfeited (19,806 ) $ 1.50 3.68 $ - Expired (17,194 ) $ 1.50 3.68 $ - Outstanding at May 31, 2023 563,000 $ 1.49 3.15 $ - Exercisable at May 31, 2023 441,208 $ 1.49 3.16 $ - |
Schedule of stock-based compensation expense [Table Text Block] | Three Months Ended May 31, Nine Months Ended May 31, Stock-based compensation 2023 2022 2023 2022 General and administrative $ 19,177 $ 53,916 $ 57,503 $ 82,324 Sales and marketing 7,587 1,151 21,860 39,029 Product development 11,321 20,096 33,964 48,504 Total stock-based compensation $ 38,085 $ 75,163 $ 113,327 $ 169,857 |
CONCENTRATIONS AND ECONOMIC D_2
CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables) | 9 Months Ended |
May 31, 2023 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Schedule of revenue from external customers [Table Text Block] | Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 Play MPE® North America $ 534,667 $ 498,465 $ 1,476,444 $ 1,460,020 Europe 477,912 461,703 1,367,190 1,414,265 Australasia 49,553 31,781 123,402 133,476 Africa 5,875 6,563 20,750 19,642 Total Play MPE® 1,068,007 998,512 2,987,786 3,027,403 Clipstream® North America - 770 - 2,450 Total $ 1,068,007 $ 999,282 $ 2,987,786 $ 3,029,853 |
CASH AND CASH EQUIVALENTS (Narr
CASH AND CASH EQUIVALENTS (Narrative) (Details) | May 31, 2023 |
Schedule of Investments [Line Items] | |
Rate of investment interest | 430% |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 34,315 | $ 32,851 | $ 102,401 | $ 66,190 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | $ 1,096,579 | $ 1,130,320 |
Property and equipment, Accumulated amortization | (890,152) | (818,528) |
Property and equipment, Net book value | 206,427 | 311,792 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 131,364 | 136,369 |
Property and equipment, Accumulated amortization | (119,828) | (122,279) |
Property and equipment, Net book value | 11,536 | 14,090 |
Computer hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 315,507 | 320,260 |
Property and equipment, Accumulated amortization | (263,728) | (259,339) |
Property and equipment, Net book value | 51,779 | 60,921 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 649,708 | 673,691 |
Property and equipment, Accumulated amortization | (506,596) | (436,910) |
Property and equipment, Net book value | $ 143,112 | $ 236,781 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 2,867 | $ 3,462 | $ 7,112 | $ 23,869 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of finite-lived intangible assets (Details) - USD ($) | May 31, 2023 | Aug. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Cost | $ 1,641,175 | $ 980,682 |
Intangibles, Accumulated Amortization | (441,527) | (450,965) |
Intangibles, Net book value | 1,199,648 | 529,717 |
Software under development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Cost | 1,182,477 | 516,397 |
Intangibles, Accumulated Amortization | 0 | 0 |
Intangibles, Net book value | 1,182,477 | 516,397 |
Patents, trademarks and lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Cost | 458,698 | 464,285 |
Intangibles, Accumulated Amortization | (441,527) | (450,965) |
Intangibles, Net book value | $ 17,171 | $ 13,320 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
May 01, 2023 | May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Feb. 18, 2022 | |
Schedule of Stockholders Equity [Line Items] | ||||||
Number of shares repurchased | 5,685 | |||||
Common shares retired | $ 4,463 | $ 4,463 | $ 179,401 | |||
Compensation cost not yet recognized | 72,153 | $ 72,153 | ||||
Compensation cost not yet recognized, period for recognition | 1 year 6 months | |||||
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 | $ 112,046 | $ 18,429 | $ 182,216 | $ 95,956 | ||
Employee stock ownership plan (ESOP), weighted average purchase price of shares purchased | $ 1.09 | $ 1.25 | ||||
Anti-dilutive shares excluded from the calculation of diluted income (loss) per share | 549,000 | 549,000 | ||||
2015 Stock Option Plan [Member] | ||||||
Schedule of Stockholders Equity [Line Items] | ||||||
Common stock shares reserved for issuance under stock option plan | 41,250 | 41,250 | ||||
Common stock reserved for issuance under stock option plan | 530,000 | 530,000 | ||||
2022 Stock Option Plan [Member] | ||||||
Schedule of Stockholders Equity [Line Items] | ||||||
Common stock shares reserved for issuance under stock option plan | 549,000 | 549,000 | ||||
Common stock reserved for issuance under stock option plan | 1,000,000 | |||||
Normal Course Issuer Bid ("NCIB") [Member] | Maximum [Member] | ||||||
Schedule of Stockholders Equity [Line Items] | ||||||
Number of common shares purchase | 599,092 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Shares | |||
Outstanding Balance | 593,000 | 410,000 | |
Granted | 561,000 | ||
Forfeited | (19,806) | (91,583) | |
Repurchased | (82,500) | ||
Expired | (17,194) | (203,917) | |
Outstanding Balance | 563,000 | 593,000 | 410,000 |
Exercisable | 441,208 | ||
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 | $ 1.49 | ||
Weighted Average Remaining Contractual Term | |||
Granted | 5 years | ||
Forfeited | 3 years 8 months 4 days | 3 years 10 months 6 days | |
Repurchased | 2 years 3 months | ||
Expired | 3 years 8 months 4 days | 6 months | |
Weighted Average Remaining Contractual Term Outstanding Balance | 3 years 1 month 24 days | 3 years 9 months 14 days | 2 years 3 months 3 days |
Weighted Average Remaining Contractual Term Exercisable | 3 years 1 month 28 days | ||
Aggregate Intrinsic Value | |||
Outstanding Balance | $ 0 | $ 0 | |
Outstanding Balance | 0 | $ 0 | $ 0 |
Exercisable | $ 0 |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of Stock-based Compensation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||||
General and administrative | $ 19,177 | $ 53,916 | $ 57,503 | $ 82,324 |
Sales and marketing | 7,587 | 1,151 | 21,860 | 39,029 |
Product development | 11,321 | 20,096 | 33,964 | 48,504 |
Total stock-based compensation | $ 38,085 | $ 75,163 | $ 113,327 | $ 169,857 |
CONCENTRATIONS AND ECONOMIC D_3
CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | |
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 561,424 | $ 483,774 | |
Customer Concentration Risk [Member] | Customer One [Member] | Revenue Benchmark [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 42% | 41% | |
Customer Concentration Risk [Member] | Customer One [Member] | Trade Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 185,858 | $ 283,144 | |
Concentration risk, percentage | 33% | 59% |
CONCENTRATIONS AND ECONOMIC D_4
CONCENTRATIONS AND ECONOMIC DEPENDENCE - Schedule of Revenue by Customer (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 1,068,007 | $ 999,282 | $ 2,987,786 | $ 3,029,853 |
Play MPE [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 1,068,007 | 998,512 | 2,987,786 | 3,027,403 |
Play MPE [Member] | North America [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 534,667 | 498,465 | 1,476,444 | 1,460,020 |
Play MPE [Member] | Europe [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 477,912 | 461,703 | 1,367,190 | 1,414,265 |
Play MPE [Member] | Australasia [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 49,553 | 31,781 | 123,402 | 133,476 |
Play MPE [Member] | Africa [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 5,875 | 6,563 | 20,750 | 19,642 |
Clipstream [Member] | North America [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 0 | $ 770 | $ 0 | $ 2,450 |