Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2023 | Jan. 16, 2024 | |
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, 2023 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,820,710 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2024 | |
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, 2023 | Aug. 31, 2023 |
Current | ||
Cash and cash equivalents | $ 1,832,365 | $ 2,002,769 |
Accounts receivable, net of allowance for doubtful accounts of $41,814 (August 31, 2023 - $41,331) | 622,768 | 432,501 |
Other receivables | 56,334 | 58,519 |
Prepaid expenses | 51,116 | 72,014 |
Deposits | 32,135 | 32,214 |
Total current assets | 2,594,718 | 2,598,017 |
Property and equipment, net | 586,439 | 642,207 |
Intangible assets, net | 796,485 | 645,474 |
Total assets | 3,977,642 | 3,885,698 |
Current | ||
Accounts payable | 92,660 | 110,203 |
Accrued liabilities | 304,043 | 267,144 |
Deferred revenue | 27,447 | 34,710 |
Total current liabilities | 424,150 | 412,057 |
Total liabilities | 424,150 | 412,057 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 9,924,610 shares (August 31, 2023 - 10,096,610 shares) | 9,924 | 10,096 |
Additional paid-in capital | 9,085,870 | 9,242,671 |
Accumulated deficit | (5,054,851) | (5,304,367) |
Accumulated other comprehensive loss | (487,451) | (474,759) |
Total stockholders' equity | 3,553,492 | 3,473,641 |
Total liabilities and stockholders' equity | $ 3,977,642 | $ 3,885,698 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 41,814 | $ 41,331 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,924,610 | 10,096,610 |
Common stock, shares outstanding | 9,924,610 | 10,096,610 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Service revenue | $ 1,154,802 | $ 1,020,737 |
Cost of revenue | 163,418 | 129,447 |
Gross margin | $ 991,384 | $ 891,290 |
Percentage of gross margin | 85.80% | 87.30% |
Operating expenses | ||
General and administrative | $ 147,892 | $ 163,061 |
Sales and marketing | 215,857 | 174,226 |
Product development | 308,547 | 263,426 |
Depreciation and amortization | 81,098 | 36,379 |
Total operating expenses | 753,394 | 637,092 |
Income from operations | 237,990 | 254,198 |
Other income | ||
Interest and other income | 11,526 | 7,668 |
Net income before income tax | 249,516 | 261,866 |
Current income tax expense | 0 | (3,600) |
Net income | 249,516 | 258,266 |
Foreign currency translation adjustments | (12,692) | (92,484) |
Total comprehensive income | $ 236,824 | $ 165,782 |
Net income per common share | ||
Basic | $ 0.02 | $ 0.03 |
Diluted | $ 0.02 | $ 0.03 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Basic | 10,010,534 | 10,122,261 |
Diluted | 10,286,534 | 10,122,261 |
Hosting costs [Member] | ||
Cost of revenue | $ 28,273 | $ 27,959 |
Internal engineering support [Member] | ||
Cost of revenue | 17,070 | 12,570 |
Customer support [Member] | ||
Cost of revenue | 96,728 | 71,228 |
Third-party and transactions costs [Member] | ||
Cost of revenue | $ 21,347 | $ 17,690 |
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, 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 | |||
Common shares retired | |||||
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 | ||||
Beginning Balance at Aug. 31, 2023 | $ 10,096 | 9,242,671 | (5,304,367) | (474,759) | 3,473,641 |
Beginning Balance (Shares) at Aug. 31, 2023 | 10,096,610 | ||||
Total comprehensive income | 249,516 | (12,692) | 236,824 | ||
Stock-based compensation | 13,805 | 13,805 | |||
Common shares retired | $ (172) | (170,606) | (170,778) | ||
Common shares retired (Shares) | (172,000) | ||||
Ending Balance at Nov. 30, 2023 | $ 9,924 | $ 9,085,870 | $ (5,054,851) | $ (487,451) | $ 3,553,492 |
Ending Balance (Shares) at Nov. 30, 2023 | 9,924,610 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Operating Activities | ||
Net income | $ 249,516 | $ 258,266 |
Adjustments to reconcile net income to net cash provided (used) in operations: | ||
Depreciation and amortization | 81,098 | 36,379 |
Stock-based compensation | 13,805 | 37,157 |
Allowance for doubtful accounts | 578 | 1,370 |
Unrealized foreign exchange gain | (1,833) | (12,869) |
Changes in non-cash working capital: | ||
Accounts receivable | (152,051) | 99,817 |
Other receivables | 2,092 | (6,951) |
Prepaid expenses and deposits | 20,789 | 30,234 |
Accounts payable | (55,411) | 442 |
Accrued liabilities | 37,325 | 19,200 |
Deferred revenue | (7,139) | (3,508) |
Net cash provided by operating activities | 188,769 | 459,537 |
Investing Activities | ||
Development of software | (154,064) | (248,309) |
Purchase of property, equipment, and intangibles | (23,338) | 0 |
Net cash used in investing activities | (177,402) | (248,309) |
Financing Activity | ||
Common stock repurchased for cancellation | (170,778) | 0 |
Net cash used in financing activities | (170,778) | 0 |
Effect of foreign exchange rate changes on cash and cash equivalents | (10,993) | (60,951) |
Net increase (decrease) in cash and cash equivalents | (170,404) | 150,277 |
Cash and cash equivalents, beginning of period | 2,002,769 | 2,095,328 |
Cash and cash equivalents, end of period | 1,832,365 | 2,246,205 |
Supplementary disclosure: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 0 | $ 3,600 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Nov. 30, 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 "TSXV") and under the symbol “DME1.F” on the Berlin, Frankfurt, Xetra and Stuttgart exchanges in Germany. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 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 28, 2023 (the "2023 Form 10-K"). The balance sheet as of August 31, 2023 was derived from audited consolidated financial statements included in the 2023 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 unaudited 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 labour capitalized to software under development and computer software, the recoverability of long-term assets including property, equipment, and intangible assets, amortization expense, and valuation of stock-based compensation. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 3 Months Ended |
Nov. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS [Text Block] | 3. CASH AND CASH EQUIVALENTS The Company's cash include cash in readily available checking accounts. The Company's cash equivalents consist of investments in mutual funds with a major Canadian financial institution that earn interest at variable interest rates ranging from 4.55% - 4.90%. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Nov. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET [Text Block] | 4. PROPERTY AND EQUIPMENT, NET November 30, 2023 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 131,579 $ (121,247 ) $ 10,332 Computer hardware 315,868 (272,499 ) 43,369 Computer software 833,188 (300,450 ) 532,738 Total property and equipment $ 1,280,635 $ (694,196 ) $ 586,439 August 31, 2023 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 131,892 $ (120,990 ) $ 10,902 Computer hardware 316,619 (269,733 ) 46,886 Computer software 811,374 (226,955 ) 584,419 Total property and equipment $ 1,259,885 $ (617,678 ) $ 642,207 During the three months ended November 30, 2023, the Company reclassified a total of $23,338 in salaries and wages from computer software under development (November 30, 2022 - $Nil). Depreciation on property and equipment for the three months ended November 30, 2023 was $77,472 (November 30, 2022 - $33,902). |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 3 Months Ended |
Nov. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET [Text Block] | 5. INTANGIBLE ASSETS, NET November 30, 2023 Intangible Assets Cost Accumulated Net Book Value Software under development $ 778,025 $ - $ 778,025 Patents, trademarks, and lists 468,009 (449,549 ) 18,460 Total intangible assets $ 1,246,034 $ (449,549 ) $ 796,485 August 31, 2023 Intangible Assets Cost Accumulated Net Book Value Software under development $ 624,539 $ - $ 624,539 Patents, trademarks, and lists 467,852 (446,917 ) 20,935 Total intangible assets $ 1,092,391 $ (446,917 ) $ 645,474 During the three months ended November 30, 2023, the Company capitalized a total of $177,402 in salaries and wages related to software under development (November 30, 2022 - $248,309), out of this amount, $23,338 (November 30, 2022 - $Nil) was subsequently reclassified to Computer software assets as the projects were completed (Note 4). Amortization on intangible assets for the three months ended November 30, 2023 was $3,626 (November 30, 2022 - $2,477). |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Nov. 30, 2023 | |
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, 2023, the Company did not issue any common stock (November 30, 2022 - Nil Nil [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, 2023, 363,250 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 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, 2023, and changes during the period were the following: Number of Options Weighted Average Weighted Aggregate Outstanding at August 31, 2022 593,000 $ 1.49 3.79 $ - Granted 228,000 $ 0.85 4.90 $ - Forfeited (72,000 ) $ 1.41 3.41 $ - Outstanding at August 31, 2023 749,000 $ 1.30 3.37 $ - Forfeited (2,250 ) $ 0.92 4.46 $ 340 Outstanding at November 30, 2023 746,750 $ 1.31 3.12 $ 37,920 Exercisable at November 30, 2023 561,434 $ 1.44 2.65 $ 8,400 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, 2023. As of November 30, 2023, the aggregate intrinsic value of outstanding and exercisable options was $37,920 and $8,400, respectively (November 30, 2022 - $Nil and $Nil, respectively). There were no stock options repurchased during the three months ended November 30, 2023 (November 30, 2022 – Nil). As of November 30, 2023, there was $73,958 (November 30, 2022 - $141,020) 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 0.96 years (November 30, 2022 - 1 year). During the three months ended November 30, 2023 and 2022, the Company recorded $13,805 and $37,157 in non-cash stock-based compensation, respectively. [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 TSXV 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 months ended November 30, 2023, the Company recognized compensation expense of $21,822 (November 30, 2022 - $18,672) 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 $0.97 (November 30, 2022 - $0.53). The shares are held in trust by the Company for a period of one year from the date of purchase. As of November 30, 2023, 227,801 shares were held in trust by the Company. [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. The following table shows the computation of basic and diluted earnings per share for the three months ended November 30, 2023 and 2022: Three Months Ended November 30, 2023 2022 Numerator: Net Income $ 249,516 $ 258,266 Denominator: Weighted-average basic shares outstanding 10,010,534 10,122,261 Effect of dilutive stock options 276,000 - Weighted-average diluted shares 10,286,534 10,122,261 Basic and diluted earnings per share $ 0.02 $ 0.03 470,750 stock options were excluded from the computation of diluted earnings per share for the three months ended November 30, 2023 because their effect would have been antidilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Nov. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES [Text Block] | 7. COMMITMENTS AND 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, ECONOMIC DEPEND
CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS | 3 Months Ended |
Nov. 30, 2023 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS [Text Block] | 8. CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS 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, 2023 and 2022, by product and location of customer, was as follows: Three Months Ended November 30, 2023 2022 Play MPE® North America $ 639,027 $ 534,844 Europe 460,422 438,681 Australasia 49,665 40,024 Africa 5,688 7,188 Total Play MPE® $ 1,154,802 $ 1,020,737 Revenue presented above 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, 2023, the Company generated 37% of total revenue from one customer (November 30, 2022 - 39%). As at November 30, 2023, one customer represented $288,177 (or 49%) of the trade receivables balance (August 31, 2023, one customer represented $143,689 (or 36%)). 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 | 3 Months Ended |
Nov. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS [Text Block] | 9. SUBSEQUENT EVENTS After the quarter ending November 30, 2023, and prior to the issuance of this Quarterly Report on Form 10-Q, the Company repurchased and canceled 103,900 common shares for a total of $102,136. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Nov. 30, 2023 | |
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 unaudited 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 labour capitalized to software under development and computer software, the recoverability of long-term assets including property, equipment, and intangible assets, amortization expense, and valuation of stock-based compensation. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment [Table Text Block] | November 30, 2023 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 131,579 $ (121,247 ) $ 10,332 Computer hardware 315,868 (272,499 ) 43,369 Computer software 833,188 (300,450 ) 532,738 Total property and equipment $ 1,280,635 $ (694,196 ) $ 586,439 August 31, 2023 Property and Equipment Cost Accumulated Net Book Value Furniture and fixtures $ 131,892 $ (120,990 ) $ 10,902 Computer hardware 316,619 (269,733 ) 46,886 Computer software 811,374 (226,955 ) 584,419 Total property and equipment $ 1,259,885 $ (617,678 ) $ 642,207 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets [Table Text Block] | November 30, 2023 Intangible Assets Cost Accumulated Net Book Value Software under development $ 778,025 $ - $ 778,025 Patents, trademarks, and lists 468,009 (449,549 ) 18,460 Total intangible assets $ 1,246,034 $ (449,549 ) $ 796,485 August 31, 2023 Intangible Assets Cost Accumulated Net Book Value Software under development $ 624,539 $ - $ 624,539 Patents, trademarks, and lists 467,852 (446,917 ) 20,935 Total intangible assets $ 1,092,391 $ (446,917 ) $ 645,474 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock option activity [Table Text Block] | Number of Options Weighted Average Weighted Aggregate Outstanding at August 31, 2022 593,000 $ 1.49 3.79 $ - Granted 228,000 $ 0.85 4.90 $ - Forfeited (72,000 ) $ 1.41 3.41 $ - Outstanding at August 31, 2023 749,000 $ 1.30 3.37 $ - Forfeited (2,250 ) $ 0.92 4.46 $ 340 Outstanding at November 30, 2023 746,750 $ 1.31 3.12 $ 37,920 Exercisable at November 30, 2023 561,434 $ 1.44 2.65 $ 8,400 |
Schedule of computation of basic and diluted earnings per share [Table Text Block] | Three Months Ended November 30, 2023 2022 Numerator: Net Income $ 249,516 $ 258,266 Denominator: Weighted-average basic shares outstanding 10,010,534 10,122,261 Effect of dilutive stock options 276,000 - Weighted-average diluted shares 10,286,534 10,122,261 Basic and diluted earnings per share $ 0.02 $ 0.03 |
CONCENTRATIONS, ECONOMIC DEPE_2
CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Schedule of revenue from external customers [Table Text Block] | Three Months Ended November 30, 2023 2022 Play MPE® North America $ 639,027 $ 534,844 Europe 460,422 438,681 Australasia 49,665 40,024 Africa 5,688 7,188 Total Play MPE® $ 1,154,802 $ 1,020,737 |
CASH AND CASH EQUIVALENTS (Narr
CASH AND CASH EQUIVALENTS (Narrative) (Details) | Nov. 30, 2023 |
Minimum [Member] | |
Schedule of Investments [Line Items] | |
Rate of investment interest | 4.55% |
Maximum [Member] | |
Schedule of Investments [Line Items] | |
Rate of investment interest | 4.90% |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Capitalized computer software development | $ 23,338 | $ 0 |
Depreciation expense | $ 77,472 | $ 33,902 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | $ 1,280,635 | $ 1,259,885 |
Property and equipment, Accumulated amortization | (694,196) | (617,678) |
Property and equipment, Net book value | 586,439 | 642,207 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 131,579 | 131,892 |
Property and equipment, Accumulated amortization | (121,247) | (120,990) |
Property and equipment, Net book value | 10,332 | 10,902 |
Computer hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 315,868 | 316,619 |
Property and equipment, Accumulated amortization | (272,499) | (269,733) |
Property and equipment, Net book value | 43,369 | 46,886 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 833,188 | 811,374 |
Property and equipment, Accumulated amortization | (300,450) | (226,955) |
Property and equipment, Net book value | $ 532,738 | $ 584,419 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Capitalized software under development | $ 177,402 | $ 248,309 |
Capitalized computer software development | 23,338 | 0 |
Amortization | $ 3,626 | $ 2,477 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of finite-lived intangible assets (Details) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Cost | $ 1,246,034 | $ 1,092,391 |
Intangibles, Accumulated Amortization | (449,549) | (446,917) |
Intangibles, Net book value | 796,485 | 645,474 |
Software under development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Cost | 778,025 | 624,539 |
Intangibles, Accumulated Amortization | 0 | 0 |
Intangibles, Net book value | 778,025 | 624,539 |
Patents, trademarks and lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Cost | 468,009 | 467,852 |
Intangibles, Accumulated Amortization | (449,549) | (446,917) |
Intangibles, Net book value | $ 18,460 | $ 20,935 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) | 3 Months Ended | ||||
Nov. 30, 2023 | Nov. 30, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Feb. 18, 2022 | |
Schedule of Stockholders Equity [Line Items] | |||||
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 | |||
Common stock, par value per share | $ 0.001 | $ 0.001 | |||
Number of shares repurchased and canceled | 172,000 | ||||
Common shares retired | $ 170,778 | ||||
Aggregate intrinsic value of outstanding | 37,920 | 0 | $ 0 | $ 0 | |
Aggregate intrinsic value of exercisable options | 8,400 | 0 | |||
Compensation cost not yet recognized | $ 73,958 | $ 141,020 | |||
Compensation cost not yet recognized, period for recognition | 11 months 15 days | 1 year | |||
Stock-based compensation | $ 13,805 | $ 37,157 | |||
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 | $ 21,822 | $ 18,672 | |||
Employee stock ownership plan (ESOP), weighted average purchase price of shares purchased | $ 0.97 | $ 0.53 | |||
Common Stock, Shares Held In Trust | $ 227,801 | ||||
Anti-dilutive shares excluded from the calculation of diluted income (loss) per share | 470,750 | ||||
2015 Stock Option Plan [Member] | |||||
Schedule of Stockholders Equity [Line Items] | |||||
Common stock reserved for issuance under stock option plan | 530,000 | ||||
Common stock shares reserved for issuance under stock option plan | 420,000 | ||||
2022 Stock Option Plan [Member] | |||||
Schedule of Stockholders Equity [Line Items] | |||||
Common stock reserved for issuance under stock option plan | 1,000,000 | ||||
Common stock shares reserved for issuance under stock option plan | 363,250 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Stock Option Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | Nov. 30, 2022 | |
Shares | ||||
Outstanding Balance | 749,000 | 593,000 | ||
Granted | 228,000 | |||
Forfeited | (2,250) | (72,000) | ||
Outstanding Balance | 746,750 | 749,000 | 593,000 | |
Exercisable | 561,434 | |||
Weighted Average Exercise Price | ||||
Outstanding Balance | $ 1.3 | $ 1.49 | ||
Granted | 0.85 | |||
Forfeited | 0.92 | 1.41 | ||
Outstanding Balance | 1.31 | $ 1.3 | $ 1.49 | |
Exercisable | $ 1.44 | |||
Weighted Average Remaining Contractual Term | ||||
Granted | 4 years 10 months 24 days | |||
Forfeited | 4 years 5 months 15 days | 3 years 4 months 28 days | ||
Weighted Average Remaining Contractual Term Outstanding Balance | 3 years 1 month 13 days | 3 years 4 months 13 days | 3 years 9 months 14 days | |
Weighted Average Remaining Contractual Term Exercisable | 2 years 7 months 24 days | |||
Aggregate Intrinsic Value | ||||
Outstanding Balance | $ 0 | $ 0 | ||
Forfeited | 340 | |||
Outstanding Balance | 37,920 | $ 0 | $ 0 | |
Exercisable | $ 8,400 | $ 0 |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of computation of basic and diluted earnings per share (Details 1) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Net income | $ 249,516 | $ 258,266 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted-average basic shares outstanding | 10,010,534 | 10,122,261 |
Effect of dilutive stock options | 276,000 | 0 |
Weighted-average diluted shares | 10,286,534 | 10,122,261 |
Earnings Per Share [Abstract] | ||
Basic | $ 0.02 | $ 0.03 |
Diluted | $ 0.02 | $ 0.03 |
CONCENTRATIONS, ECONOMIC DEPE_3
CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | Aug. 31, 2023 | |
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 622,768 | $ 432,501 | |
Customer Concentration Risk [Member] | Customer One [Member] | Revenue Benchmark [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 37% | 39% | |
Customer Concentration Risk [Member] | Customer One [Member] | Trade Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 288,177 | $ 143,689 | |
Concentration risk, percentage | 49% | 36% |
CONCENTRATIONS, ECONOMIC DEPE_4
CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS - Schedule of Revenue by Customer (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Concentration Risk [Line Items] | ||
Revenue | $ 1,154,802 | $ 1,020,737 |
Play MPE [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 1,154,802 | 1,020,737 |
Play MPE [Member] | North America [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 639,027 | 534,844 |
Play MPE [Member] | Europe [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 460,422 | 438,681 |
Play MPE [Member] | Australasia [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 49,665 | 40,024 |
Play MPE [Member] | Africa [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 5,688 | $ 7,188 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 02, 2023 | Nov. 30, 2023 | |
Subsequent Event [Line Items] | ||
Number of shares repurchased and canceled | 172,000 | |
Subsequent event [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares repurchased and canceled | 103,900 | |
Amount of shares repurchased and canceled | $ 102,136 |