Destiny Media (DSNY) 10-Q 15 Jul 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May 31, 2024	Jul. 15, 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	May 31, 2024
Current Fiscal Year End Date	--05-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		9,637,410
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2024
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, 2024	Aug. 31, 2023
Current
Cash and cash equivalents	$ 1,390,887	$ 2,002,769
Accounts receivable, net of allowance for credit losses of $40,950 (August 31, 2023 - $41,331)	682,359	432,501
Other receivables	69,915	58,519
Prepaid expenses	69,429	72,014
Deposits	31,995	32,214
Total current assets	2,244,585	2,598,017
Property and equipment, net	474,902	642,207
Intangible assets, net	970,663	645,474
Total assets	3,690,150	3,885,698
Current
Accounts payable	88,269	110,203
Accrued liabilities	298,847	267,144
Deferred revenue	36,930	34,710
Total current liabilities	424,046	412,057
Total liabilities	424,046	412,057
Commitments and contingencies	0	0
Stockholders' equity
Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 9,637,410 shares (August 31, 2023 - 10,096,610 shares)	9,637	10,096
Additional paid-in capital	8,808,678	9,242,671
Accumulated deficit	(5,050,387)	(5,304,367)
Accumulated other comprehensive loss	(501,824)	(474,759)
Total stockholders' equity	3,266,104	3,473,641
Total liabilities and stockholders' equity	$ 3,690,150	$ 3,885,698

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	May 31, 2024	Aug. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit losses	$ 40,950	$ 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	9,637,410	10,096,610
Common stock, shares outstanding	9,637,410	10,096,610

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Service revenue	$ 1,155,442	$ 1,068,007	$ 3,296,582	$ 2,987,786
Cost of revenue	150,044	133,753	448,808	389,794
Gross margin	$ 1,005,398	$ 934,254	$ 2,847,774	$ 2,597,992
Percentage of gross margin	87%	87.50%	86.40%	87%
Operating expenses
General and administrative	$ 159,940	$ 314,387	$ 513,087	$ 652,793
Sales and marketing	280,308	237,834	781,166	670,360
Product development	356,599	247,392	1,084,329	823,722
Depreciation and amortization	87,760	37,182	255,884	109,513
Total operating expenses	884,607	836,795	2,634,466	2,256,388
Income from operations	120,791	97,459	213,308	341,604
Other income
Interest and other income	13,685	9,593	40,672	26,038
Net income before income tax	134,476	107,052	253,980	367,642
Current income tax expense	0	0	0	(3,600)
Net income	134,476	107,052	253,980	364,042
Foreign currency translation adjustments	(16,714)	1,429	(27,065)	(109,977)
Total comprehensive income	$ 117,762	$ 108,481	$ 226,915	$ 254,065
Net income per common share
Basic	$ 0.01	$ 0.01	$ 0.03	$ 0.04
Diluted	$ 0.01	$ 0.01	$ 0.03	$ 0.04
Weighted average common shares outstanding:
Basic	9,689,303	10,123,984	9,846,942	10,124,168
Diluted	9,722,035	10,123,984	9,888,441	10,124,168
Hosting costs [Member]
Cost of revenue	$ 35,036	$ 30,555	$ 95,692	$ 84,040
Internal engineering support [Member]
Cost of revenue	14,249	12,707	44,245	38,160
Customer support [Member]
Cost of revenue	80,746	72,001	250,721	216,237
Third-party and transactions costs [Member]
Cost of revenue	$ 20,013	$ 18,490	$ 58,150	$ 51,357

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 (loss)			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
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)					254,065
Common shares retired					(4,463)
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 Nov. 30, 2022	$ 10,122	9,153,005	(5,381,199)	(468,702)	3,313,226
Beginning Balance (Shares) at Nov. 30, 2022	10,122,261
Total comprehensive income (loss)			(1,276)	(18,922)	(20,198)
Stock-based compensation		38,085			38,085
Ending Balance at Feb. 28, 2023	$ 10,122	9,191,090	(5,382,475)	(487,624)	3,331,113
Ending 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 retired		(4,463)			(4,463)
Common shares retired (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 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 (loss)			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
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 (loss)					226,915
Common shares retired					(470,271)
Ending Balance at May. 31, 2024	$ 9,637	8,808,678	(5,050,387)	(501,824)	3,266,104
Ending Balance (Shares) at May. 31, 2024	9,637,410
Beginning Balance at Nov. 30, 2023	$ 9,924	9,085,870	(5,054,851)	(487,451)	3,553,492
Beginning Balance (Shares) at Nov. 30, 2023	9,924,610
Total comprehensive income (loss)			(130,012)	2,341	(127,671)
Stock-based compensation		10,655			10,655
Common shares retired	$ (137)	(135,765)			(135,902)
Common shares retired (Shares)	(137,300)
Ending Balance at Feb. 29, 2024	$ 9,787	8,960,760	(5,184,863)	(485,110)	3,300,574
Ending Balance (Shares) at Feb. 29, 2024	9,787,310
Total comprehensive income (loss)			134,476	(16,714)	117,762
Stock-based compensation		11,359			11,359
Common shares retired	$ (150)	(163,441)			(163,591)
Common shares retired (Shares)	(149,900)
Ending Balance at May. 31, 2024	$ 9,637	$ 8,808,678	$ (5,050,387)	$ (501,824)	$ 3,266,104
Ending Balance (Shares) at May. 31, 2024	9,637,410

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2024	May 31, 2023
Operating Activities
Net income	$ 253,980	$ 364,042
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	255,884	109,513
Stock-based compensation	35,819	113,327
Bad debt	736	(3,119)
Unrealized foreign exchange gain	(6,562)	0
Changes in non-cash working capital:
Accounts receivable	(215,923)	(95,790)
Other receivables	(11,808)	(22,283)
Prepaid expenses and deposits	2,304	34,795
Accounts payable	(59,324)	16,787
Accrued liabilities	33,474	(30,082)
Deferred revenue	2,467	20,626
Net cash provided by operating activities	291,047	507,816
Investing Activities
Development of software	(327,954)	(689,691)
Purchase of property, equipment, and intangibles	(95,011)	(19,254)
Net cash used in investing activities	(422,965)	(708,945)
Financing Activity
Common stock repurchased for cancellation	(470,271)	(4,463)
Net cash used in financing activity	(470,271)	(4,463)
Effect of foreign exchange rate changes on cash and cash equivalents	(9,693)	(65,164)
Net decrease in cash and cash equivalents	(611,882)	(270,756)
Cash and cash equivalents, beginning of period	2,002,769	2,095,928
Cash and cash equivalents, end of period	1,390,887	1,825,172
Supplementary disclosure:
Interest paid	0	0
Income taxes paid	$ 0	$ (3,600)

ORGANIZATION

ORGANIZATION	9 Months Ended
	May 31, 2024
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 North America, 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.V" 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	9 Months Ended
	May 31, 2024
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. ("DSPI"), 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 condensed consolidated 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 presentation 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, credit losses, and valuation of stock-based compensation.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS	9 Months Ended
	May 31, 2024
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	9 Months Ended
	May 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET [Text Block]	4. PROPERTY AND EQUIPMENT, NET May 31, 2024 Property and Equipment Cost Accumulated Amortization Net Book Value Furniture and fixtures $ 131,007 $ (121,803 ) $ 9,204 Computer hardware 318,848 (278,627 ) 40,221 Computer software 883,051 (457,574 ) 425,477 Total property and equipment $ 1,332,906 $ (858,004 ) $ 474,902 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 and nine months ended May 31, 2024, the Company reclassified a total of $26,670 and $77,125 in salaries and wages from software under development to computer software, respectively (May 31, 2023 - $Nil and $Nil, respectively). Depreciation on property and equipment for the three and nine months ended May 31, 2024 was $84,960 and $245,515, respectively (May 31, 2023 - $34,315 and $102,401, respectively).

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	9 Months Ended
	May 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET [Text Block]	5. INTANGIBLE ASSETS, NET May 31, 2024 Intangible Assets Cost Accumulated Net Book Value Software under development $ 946,850 $ - $ 946,850 Patents, trademarks, and lists 478,100 (454,287 ) 23,813 Total intangible assets $ 1,424,950 $ (454,287 ) $ 970,663 August 31, 2023 Intangible Assets Cost Accumulated Amortization 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 and nine months ended May 31, 2024, the Company capitalized a total of $123,695 and $404,652 in salaries and wages related to software under development, respectively (May 31, 2023 - $237,297 and $689,366, respectively), out of this amount, $26,670 and $77,125, respectively, was subsequently reclassified to computer software assets as the projects were completed (Note 4) (May 31, 2023- $Nil and $Nil, respectively). Amortization of intangible assets for the three and nine months ended May 31, 2024 was $2,800 and $10,369, respectively (May 31, 2023 - $2,867 and $7,112, respectively).

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	May 31, 2024
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 and nine months ended May 31, 2024, the Company did not issue any common stock (May 31, 2023 - Nil and Nil, respectively). During the three and nine months ended May 31, 2024, the Company repurchased and cancelled 149,900 and 459,200 common shares for $163,591 and $470,271 respectively (during the three and nine months ended May 31, 2023 - repurchased and cancelled 5,685 common shares for $4,463). [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 May 31, 2024, 367,000 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 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 May 31, 2024, and changes during the period were the following: Number of Options Weighted Average Exercise Price Weighted Average Aggregate Intrinsic Value 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 $ - Granted 20,000 $ 1.15 4.86 $ - Forfeited (23,416 ) $ 1.13 3.39 $ 658 Expired (2,584 ) $ 1.29 2.98 $ 42 Outstanding at May 31, 2024 743,000 $ 1.31 2.66 $ 10,200 Exercisable at May 31, 2024 608,807 $ 1.39 2.31 $ 4,511 During the three and nine months ended May 31, 2024, the Company granted 20,000 stock options to the employees of the Company (three and nine months ended May 31, 2023 - Nil). The weighted-average assumptions used to estimate the fair value of stock options using the Black-Scholes option valuation model were as follows: risk-free interest rate - 4.37%, volatility - 85.31%, exercise price - $1.15, dividend yield - 0%, forfeiture rate - 0%, expected life - 2.13 years. 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, 2024. As of May 31, 2024, the aggregate intrinsic value of outstanding and exercisable options was $10,200 and $4,511, respectively (May 31, 2023 - $Nil and $Nil, respectively). As of May 31, 2024, there was $59,082 (May 31, 2023 - $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 0.77 years (May 31, 2023 - 1.5 years). During the three and nine months ended May 31, 2024, the Company recorded $11,359 and $35,819 in non-cash stock-based compensation, respectively (May 31, 2023 - $38,085 and $113,327, 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 and nine months ended May 31, 2024, the Company recognized compensation expense of $17,734 and $51,664, respectively (May 31, 2023 - $47,878 and $87,100, respectively) 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 $1.02 over a nine-month period (May 31, 2023 - $1.09). The shares are held in trust by the Company for a period of one year from the date of purchase. As of May 31, 2024, 139,293 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 and nine months ended May 31, 2024, and 2023: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 Numerator: Net income $ 134,476 $ 107,052 $ 253,980 $ 364,042 Denominator: Weighted-average basic shares outstanding 9,689,303 10,123,984 9,846,942 10,124,168 Effect of dilutive stock-based awards 32,732 - 41,499 - Weighted-average diluted shares 9,722,035 10,123,984 9,888,441 10,124,168 Basic and diluted earnings per share $ 0.01 $ 0.01 $ 0.03 $ 0.04 479,000 stock options were excluded from the computation of diluted earnings per share for the three and nine months ended May 31, 2024, because their effect would have been antidilutive.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	May 31, 2024
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	9 Months Ended
	May 31, 2024
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 and nine months ended May 31, 2024 and 2023, by product and location of customer, was as follows: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 Play MPE® North America $ 583,195 $ 534,667 $ 1,668,512 $ 1,476,444 Europe 514,792 477,912 1,468,018 1,367,190 Australasia 52,705 49,553 144,239 123,402 Africa 4,750 5,875 15,813 20,750 Total Play MPE® $ 1,155,442 $ 1,068,007 $ 3,296,582 $ 2,987,786 Revenue presented above is based on the 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 and nine months ended May 31, 2024, the Company generated 42.1% of total revenue from one customer (May 31, 2023 - 40.5% and 42.0%, respectively). As at May 31, 2024, one customer represented $338,959 (or 56%) 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.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	May 31, 2024
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, credit losses, and valuation of stock-based compensation.

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	9 Months Ended
	May 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment [Table Text Block]	May 31, 2024 Property and Equipment Cost Accumulated Amortization Net Book Value Furniture and fixtures $ 131,007 $ (121,803 ) $ 9,204 Computer hardware 318,848 (278,627 ) 40,221 Computer software 883,051 (457,574 ) 425,477 Total property and equipment $ 1,332,906 $ (858,004 ) $ 474,902 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)	9 Months Ended
	May 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of finite-lived intangible assets [Table Text Block]	May 31, 2024 Intangible Assets Cost Accumulated Net Book Value Software under development $ 946,850 $ - $ 946,850 Patents, trademarks, and lists 478,100 (454,287 ) 23,813 Total intangible assets $ 1,424,950 $ (454,287 ) $ 970,663 August 31, 2023 Intangible Assets Cost Accumulated Amortization 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)	9 Months Ended
	May 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of stock option activity [Table Text Block]	Number of Options Weighted Average Exercise Price Weighted Average Aggregate Intrinsic Value 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 $ - Granted 20,000 $ 1.15 4.86 $ - Forfeited (23,416 ) $ 1.13 3.39 $ 658 Expired (2,584 ) $ 1.29 2.98 $ 42 Outstanding at May 31, 2024 743,000 $ 1.31 2.66 $ 10,200 Exercisable at May 31, 2024 608,807 $ 1.39 2.31 $ 4,511
Schedule of computation of basic and diluted earnings per share [Table Text Block]	Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 Numerator: Net income $ 134,476 $ 107,052 $ 253,980 $ 364,042 Denominator: Weighted-average basic shares outstanding 9,689,303 10,123,984 9,846,942 10,124,168 Effect of dilutive stock-based awards 32,732 - 41,499 - Weighted-average diluted shares 9,722,035 10,123,984 9,888,441 10,124,168 Basic and diluted earnings per share $ 0.01 $ 0.01 $ 0.03 $ 0.04

CONCENTRATIONS, ECONOMIC DEPE_2

CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS (Tables)	9 Months Ended
	May 31, 2024
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, 2024 2023 2024 2023 Play MPE® North America $ 583,195 $ 534,667 $ 1,668,512 $ 1,476,444 Europe 514,792 477,912 1,468,018 1,367,190 Australasia 52,705 49,553 144,239 123,402 Africa 4,750 5,875 15,813 20,750 Total Play MPE® $ 1,155,442 $ 1,068,007 $ 3,296,582 $ 2,987,786

CASH AND CASH EQUIVALENTS (Narr

CASH AND CASH EQUIVALENTS (Narrative) (Details)	May 31, 2024
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		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Property, Plant and Equipment [Abstract]
Capitalized computer software development	$ 26,670	$ 0	$ 77,125	$ 0
Depreciation expense	$ 84,960	$ 34,315	$ 245,515	$ 102,401

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of property, plant and equipment (Details) - USD ($)	May 31, 2024	Aug. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	$ 1,332,906	$ 1,259,885
Property and equipment, Accumulated Amortization	(858,004)	(617,678)
Property and equipment, Net Book Value	474,902	642,207
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	131,007	131,892
Property and equipment, Accumulated Amortization	(121,803)	(120,990)
Property and equipment, Net Book Value	9,204	10,902
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	318,848	316,619
Property and equipment, Accumulated Amortization	(278,627)	(269,733)
Property and equipment, Net Book Value	40,221	46,886
Computer software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Cost	883,051	811,374
Property and equipment, Accumulated Amortization	(457,574)	(226,955)
Property and equipment, Net Book Value	$ 425,477	$ 584,419

INTANGIBLE ASSETS, NET (Narrati

INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software under development	$ 123,695	$ 237,297	$ 404,652	$ 689,366
Capitalized computer software development	26,670	0	77,125	0
Amortization	$ 2,800	$ 2,867	$ 10,369	$ 7,112

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of finite-lived intangible assets (Details) - USD ($)	May 31, 2024	Aug. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangibles, Cost	$ 1,424,950	$ 1,092,391
Intangibles, Accumulated Amortization	(454,287)	(446,917)
Intangibles, Net book value	970,663	645,474
Software under development [Member]
Finite-Lived Intangible Assets [Line Items]
Intangibles, Cost	946,850	624,539
Intangibles, Accumulated Amortization	0	0
Intangibles, Net book value	946,850	624,539
Patents, trademarks and lists [Member]
Finite-Lived Intangible Assets [Line Items]
Intangibles, Cost	478,100	467,852
Intangibles, Accumulated Amortization	(454,287)	(446,917)
Intangibles, Net book value	$ 23,813	$ 20,935

STOCKHOLDERS' EQUITY (Narrative

STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($)	3 Months Ended				9 Months Ended
	May 31, 2024	Feb. 29, 2024	Nov. 30, 2023	May 31, 2023	May 31, 2024	May 31, 2023	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		20,000,000
Common stock, par value per share	$ 0.001				$ 0.001		$ 0.001
Number of shares repurchased and canceled	149,900			5,685	459,200	5,685
Common shares retired	$ 163,591	$ 135,902	$ 170,778	$ 4,463	$ 470,271	$ 4,463
Employee stock options granted	20,000			0	20,000	0
Risk-free interest rate					4.37%
Volatility					85.31%
Exercise price	$ 1.15				$ 1.15
Dividend yields					0%
Forfeiture rate					0%
Expected life (years)					2 years 1 month 17 days
Aggregate intrinsic value of outstanding	$ 10,200			$ 0	$ 10,200	$ 0	$ 0	$ 0
Aggregate intrinsic value of exercisable options	4,511			0	4,511	0
Compensation cost not yet recognized	59,082			$ 72,153	$ 59,082	$ 72,153
Common stock issue				0		0
Compensation cost not yet recognized, period for recognition					9 months 7 days	1 year 6 months
Stock-based compensation	11,359			$ 38,085	$ 35,819	$ 113,327
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	17,734			$ 47,878	$ 51,664	$ 87,100
Employee stock ownership plan (ESOP), weighted average purchase price of shares purchased					$ 1.02	$ 1.09
Common Stock, Shares Held In Trust	$ 139,293				$ 139,293
Anti-dilutive shares excluded from the calculation of diluted income (loss) per share	479,000				479,000
2015 Stock Option Plan [Member]
Schedule of Stockholders Equity [Line Items]
Common stock reserved for issuance under stock option plan	530,000				530,000
Common stock shares reserved for issuance under stock option plan	420,000				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	367,000				367,000

STOCKHOLDERS' EQUITY - Schedule

STOCKHOLDERS' EQUITY - Schedule of stock option activity (Details) - USD ($)	9 Months Ended	12 Months Ended
	May 31, 2024	Aug. 31, 2023	Aug. 31, 2022	May 31, 2023
Number of Shares
Outstanding Balance	749,000	593,000
Granted	20,000	228,000
Forfeited	(23,416)	(72,000)
Expired	(2,584)
Outstanding Balance	743,000	749,000	593,000
Exercisable	608,807
Weighted Average Exercise Price
Outstanding Balance	$ 1.3	$ 1.49
Granted	1.15	0.85
Forfeited	1.13	1.41
Expired	1.29
Outstanding Balance	1.31	$ 1.3	$ 1.49
Exercisable	$ 1.39
Weighted Average Remaining Contractual Term
Granted	4 years 10 months 9 days	4 years 10 months 24 days
Forfeited	3 years 4 months 20 days	3 years 4 months 28 days
Expired	2 years 11 months 23 days
Weighted Average Remaining Contractual Term Outstanding Balance	2 years 7 months 28 days	3 years 4 months 13 days	3 years 9 months 14 days
Weighted Average Remaining Contractual Term Exercisable	2 years 3 months 21 days
Aggregate Intrinsic Value
Outstanding Balance	$ 0	$ 0
Granted	0	0
Forfeited	658	0
Exercised	42
Outstanding Balance	10,200	$ 0	$ 0
Exercisable	$ 4,511			$ 0

STOCKHOLDERS' EQUITY - Schedu_2

STOCKHOLDERS' EQUITY - Schedule of computation of basic and diluted earnings per share (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Stockholders' Equity Note [Abstract]
Net income	$ 134,476	$ 107,052	$ 253,980	$ 364,042
Denominator:
Weighted-average basic shares outstanding	9,689,303	10,123,984	9,846,942	10,124,168
Effect of dilutive stock-based awards	32,732	0	41,499	0
Weighted-average diluted shares	9,722,035	10,123,984	9,888,441	10,124,168
Earnings Per Share [Abstract]
Basic	$ 0.01	$ 0.01	$ 0.03	$ 0.04
Diluted	$ 0.01	$ 0.01	$ 0.03	$ 0.04

CONCENTRATIONS, ECONOMIC DEPE_3

CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023	Aug. 31, 2023
Concentration Risk [Line Items]
Accounts receivable, net of allowance for doubtful accounts	$ 682,359		$ 682,359		$ 432,501
Customer Concentration Risk [Member] | Customer One [Member] | Revenue Benchmark [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	42.10%	40.50%	42.10%	42%
Customer Concentration Risk [Member] | Customer One [Member] | Trade Accounts Receivable [Member]
Concentration Risk [Line Items]
Accounts receivable, net of allowance for doubtful accounts	$ 338,959		$ 338,959		$ 143,689
Concentration risk, percentage			56%		36%

CONCENTRATIONS, ECONOMIC DEPE_4

CONCENTRATIONS, ECONOMIC DEPENDENCE AND SEGMENTS - Schedule of revenue by customer (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Concentration Risk [Line Items]
Revenue	$ 1,155,442	$ 1,068,007	$ 3,296,582	$ 2,987,786
North America [Member]
Concentration Risk [Line Items]
Revenue	583,195	534,667	1,668,512	1,476,444
Europe [Member]
Concentration Risk [Line Items]
Revenue	514,792	477,912	1,468,018	1,367,190
Australasia [Member]
Concentration Risk [Line Items]
Revenue	52,705	49,553	144,239	123,402
Africa [Member]
Concentration Risk [Line Items]
Revenue	$ 4,750	$ 5,875	$ 15,813	$ 20,750