Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2021 | Jan. 07, 2022 | |
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, 2021 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,147,771 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2022 | |
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 | 1110 - 885 West Georgia Street | |
Entity Address, Address Line Two | British Columbia | |
Entity Address, City or Town | Vancouver | |
Entity Address, Postal Zip Code | V6C 3E8 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 84-1516745 | |
Local Phone Number | 609-7736 | |
City Area Code | 604 | |
Entity Address, Country | CA |
CONDENSED CONSOLIDATED INTERIM
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
Current | ||
Cash and cash equivalents | $ 2,536,426 | $ 2,752,662 |
Short-term investments | 0 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $23,718, [August 31, 2021 - $19,743] | 564,677 | 400,233 |
Other receivables | 60,168 | 53,172 |
Prepaid expenses | 107,253 | 103,463 |
Total current assets | 3,268,524 | 3,309,530 |
Deposits | 35,077 | 35,556 |
Property and equipment, net | 130,863 | 143,487 |
Intangible assets, net | 247,448 | 187,622 |
Right of use asset | 131,384 | 190,253 |
Total assets | 3,813,296 | 3,866,448 |
Current | ||
Accounts payable | 101,749 | 202,722 |
Accrued liabilities | 322,331 | 309,839 |
Deferred revenue | 3,944 | 8,511 |
Current portion of operating lease liability | 158,301 | 226,978 |
Total current liabilities | 586,325 | 748,050 |
Operating lease liability, net of current portion | 0 | 0 |
Total liabilities | 586,325 | 748,050 |
Stockholders' equity | ||
Common stock, par value $0.001 Authorized: 20,000,000 shares Issued and outstanding: 10,235,071 shares [August 31, 2021 - issued and outstanding 10,265,361 shares] | 10,235 | 10,266 |
Additional paid-in capital | 9,139,575 | 9,157,804 |
Accumulated deficit | (5,622,938) | (5,788,539) |
Accumulated other comprehensive loss | (299,901) | (261,133) |
Total stockholders' equity | 3,226,971 | 3,118,398 |
Total liabilities and stockholders' equity | $ 3,813,296 | $ 3,866,448 |
CONDENSED CONSOLIDATED INTERI_2
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Parentheticals) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 23,718 | $ 19,743 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 10,235,061 | 10,265,361 |
Common Stock, Shares, Outstanding | 10,235,061 | 10,265,361 |
CONDENSED CONSOLIDATED INTERI_3
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME Unaudited - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Service revenue | $ 1,134,151 | $ 1,123,977 |
Cost of revenue | 117,563 | 90,313 |
Gross Margin | 1,016,588 | 1,033,664 |
Operating expenses | ||
General and administrative | 150,624 | 159,549 |
Sales and marketing | 415,810 | 302,474 |
Product development | 258,424 | 298,088 |
Depreciation and amortization | 27,172 | 24,315 |
Total Operating Expenses | 852,030 | 784,426 |
Income from operations | 164,558 | 249,238 |
Other income | ||
Interest income | 1,043 | 1,464 |
Net income | $ 165,601 | $ 250,702 |
Net income per common share, basic and diluted (in dollars per share) | $ 0.02 | $ 0.02 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 10,257,964 | 10,450,656 |
Diluted (in shares) | 10,337,338 | 10,450,656 |
Hosting costs [Member] | ||
Cost of revenue | $ 42,184 | $ 30,042 |
Internal engineering support [Member] | ||
Cost of revenue | 8,400 | 6,327 |
Customer support [Member] | ||
Cost of revenue | 47,603 | 35,852 |
Third party and transaction costs [Member] | ||
Cost of revenue | $ 19,376 | $ 18,092 |
CONDENSED CONSOLIDATED INTERI_4
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income for the period | $ 165,601 | $ 250,702 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustments | (38,768) | 28,042 |
Total comprehensive income | $ 126,833 | $ 278,744 |
CONDENSED CONSOLIDATED INTERI_5
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Unaudited - USD ($) | Common stock [Member] | Additional paid-in capital [Member] | Accumulated Deficit [Member] | Accumulated other comprehensive Loss [Member] | Total |
Beginning Balance at Aug. 31, 2020 | $ 10,451 | $ 9,366,290 | $ (6,171,068) | $ (345,456) | $ 2,860,217 |
Beginning Balance (Shares) at Aug. 31, 2020 | 10,450,646 | ||||
Total comprehensive income | 250,702 | 28,042 | 278,744 | ||
Stock based compensation | 12,849 | 12,849 | |||
Ending Balance at Nov. 30, 2020 | $ 10,451 | 9,379,139 | (5,920,366) | (317,414) | 3,151,810 |
Ending Balance (Shares) at Nov. 30, 2020 | 10,450,646 | ||||
Beginning Balance at Aug. 31, 2021 | $ 10,266 | 9,157,804 | (5,788,539) | (261,133) | 3,118,398 |
Beginning Balance (Shares) at Aug. 31, 2021 | 10,265,361 | ||||
Total comprehensive income | 165,601 | (38,768) | 126,833 | ||
Stock based compensation | 25,906 | 25,906 | |||
Shares repurchased for cancellation | $ (31) | (44,135) | (44,166) | ||
Shares repurchased for cancellation (shares) | (30,300) | ||||
Ending Balance at Nov. 30, 2021 | $ 10,235 | $ 9,139,575 | $ (5,622,938) | $ (299,901) | $ 3,226,971 |
Ending Balance (Shares) at Nov. 30, 2021 | 10,235,061 |
CONDENSED CONSOLIDATED INTERI_6
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 165,601 | $ 250,702 |
Items not involving cash: | ||
Depreciation and amortization | 27,172 | 24,315 |
Stock-based compensation | 25,906 | 12,849 |
Deferred leasehold inducement | 0 | 0 |
Unrealized foreign exchange (gain) loss | 3,436 | 11,372 |
Changes in non-cash working capital: | ||
Accounts receivable | (177,303) | 98,548 |
Other receivables | (6,212) | (4,763) |
Prepaid expenses and deposits | (4,971) | 16,497 |
Accounts payable | (94,434) | 102,318 |
Accrued liabilities | 12,709 | (66,893) |
Deferred revenue | (4,530) | (909) |
Operating lease liability | 0 | (2,382) |
Net cash (used in) provided by operating activities | (52,626) | 441,654 |
INVESTING ACTIVITIES | ||
Redemption (purchase) of short-term investments, net | 0 | 763,749 |
Development of software | (72,290) | 0 |
Purchase of property, equipment and intangibles | (7,997) | (5,188) |
Net cash provided by (used in) investing activities | (80,287) | 758,561 |
FINANCING ACTIVITY | ||
Repurchase of common stock for retirement | (44,166) | 0 |
Net cash used in financing activity | (44,166) | 0 |
Effect of foreign exchange rate changes on cash | (39,157) | 35,307 |
Net increase (decrease) in cash and cash equivalents | (216,236) | 1,235,522 |
Cash and cash equivalents, beginning of period | 2,752,662 | 1,841,340 |
Cash and cash equivalents, end of period | 2,536,426 | 3,076,862 |
Supplementary disclosure | ||
Interest paid | 0 | 0 |
Income taxes paid | 0 | 0 |
Non-cash investing and financing activities | ||
Right of use asset | 0 | 0 |
Operating lease liability | $ 0 | $ 0 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION [Text Block] | 1. ORGANIZATION Destiny Media Technologies Inc. (the "Company") was incorporated in August 1998 under the laws of the State of Colorado and the corporate jurisdiction was changed to Nevada effective October 8, 2014. The Company develops technologies that allow for the distribution over the internet of digital media files in either a streaming or digital download format. The technologies are proprietary. The Company operates out of Vancouver, BC, Canada and serves customers predominantly located in the United States, Europe and Australia. The Company's stock is listed for trading under the symbol "DSNY" on the OTCQB U.S. in the United States, under the symbol "DSY" on the TSX Venture Exchange and under the symbol "DME" on the Berlin, Frankfurt, Xetra and Stuttgart exchanges in Germany. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 2021 | |
Basis Of Presentation [Abstract] | |
BASIS OF PRESENTATION [Text Block] | 2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States for interim financial information pursuant to the rules and regulations of the United States Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2021 are not necessarily indicative of the results that may be expected for the year ended August 31, 2022. The balance sheet at August 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for annual financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended August 31, 2021. COVID-19 Pandemic In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses, including the Company's. This outbreak could decrease spending, adversely affect demand for the Company's product and harm the Company's business and results of operations. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company's business or results of operations at this time. |
SHORT TERM INVESTMENTS
SHORT TERM INVESTMENTS | 3 Months Ended |
Nov. 30, 2021 | |
Short-term Investments [Abstract] | |
SHORT TERM INVESTMENTS [Text Block] | 3. SHORT TERM INVESTMENTS The Company's short-term investments consisted of one-year Guaranteed Investment Certificates with a major Canadian financial institution that earn interest at variable interest rates ranging from 0.10% - 2.36%. As at November 30, 2021, the Company's short-term investments had reached maturity, and are included in cash and cash equivalents. |
PROPERTY AND EQUIPMENT AND INTA
PROPERTY AND EQUIPMENT AND INTANGIBLES | 3 Months Ended |
Nov. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT AND INTANGIBLES [Text Block] | 4. PROPERTY AND EQUIPMENT AND INTANGIBLES Cost Accumulated amortization Net book value November 30, 2021 $ $ $ Property and equipment Furniture and fixtures 132,814 115,655 17,159 Computer hardware 297,888 235,062 62,826 Computer software 377,245 339,074 38,171 Leasehold improvement 157,449 144,742 12,707 965,396 834,533 130,863 Intangibles Software under development 236,724 6,189 230,535 Patents, trademarks and lists 443,333 426,420 16,913 680,057 432,609 247,448 Accumulated Net book Cost amortization value August 31, 2021 $ $ $ Property and equipment Furniture and fixtures 133,049 114,740 18,309 Computer hardware 293,930 231,180 62,750 Computer software 377,777 333,751 44,026 Leasehold improvements 157,934 139,532 18,402 962,690 819,203 143,487 Intangibles Software under development 167,069 - 167,069 Patents, trademarks and lists 441,178 420,625 20,553 608,247 420,625 187,622 Depreciation and amortization for the three-month period ended November 30, 2021 was $27,172 (2020: $24,315) |
RIGHT OF USE ASSET
RIGHT OF USE ASSET | 3 Months Ended |
Nov. 30, 2021 | |
Leases [Abstract] | |
RIGHT OF USE ASSET [Text Block] | 5. RIGHT OF USE ASSET The Company entered into a lease agreement commencing July 1, 2017 and expiring June 30, 2022 consisting of approximately 6,600 square feet. Subsequent to November 30, 2021, the Company entered into an agreement to terminate the office lease effective January 31, 2022. On adoption of ASC 842, Lease Accounting, the Company recognized right-of-use assets and a corresponding increase in lease liabilities, in the amount of $671,911 which represented the present value of future lease payments using a discount rate of 8% per year. Property tax and insurance payments paid to the lessor are included in the calculation of future lease payments. Right of Use Asset Continuity November 30, 2021 August 31, 2021 $ $ Balance, September 1 190,253 403,961 Depreciation (57,284 ) (224,154 ) Foreign Currency Translation Adjustment (1,585 ) 10,446 Balance, End of Period 131,384 190,253 The Company has operating lease payments committed as follows: $ 2022 162,414 Total lease payments payable 162,414 Less amounts representing interest (4,113 ) Total Operating Lease Liability 158,301 Less current portion of operating lease liability (158,301 ) Long term portion of operating lease liability - Operating Lease Liability Continuity November 30, 2021 August 31, 2021 $ $ Balance, September 1 226,978 457,324 Less Lease Payments (70,873 ) (270,898 ) Interest 4,113 28,714 Foreign Currency Translation Adjustment (1,917 ) 11,838 Balance, End of Period 158,301 226,978 During the three-month period ended November 30, 2021 the Company recorded depreciation expense of $57,284 (2020: $54,636) which has been allocated between general and administrative expenses, research and development and sales and marketing on the consolidated statement of comprehensive income. The total rent commitment, net of the leasehold improvement allowance, is being amortized to rent expense on a straight-line basis over the term of the lease. On December 17, 2021, the Company entered into an agreement to terminate the property lease effective January 31, 2022. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Nov. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY [Text Block] | 6. STOCKHOLDERS' EQUITY [a] Common stock issued and authorized The Company is authorized to issue up to 20,000,000 shares of common stock, par value $0.001 per share. Effective January 15, 2021, the Company commenced a Normal Course Issuer Bid ("NCIB"), pursuant to which the Company may purchase up to a maximum of 522,532 common shares, through the TSX Venture Exchange (the "TSX") at the market price at the time of purchase, subject to daily limits and compliance with the applicable rules of the TSX and Canadian securities laws. During the three-month period ended November 30, 2021, the Company repurchased and cancelled 30,300 common shares for $44,166. As at November 30, 2021 a total of 215,585 shares had been repurchased for $304,570 under the NCIB. [b] Stock option plan The Company has a stock option plan, namely the 2015 Stock Option Plan (the "Plan"), under which up to 530,000 shares of common stock, has been reserved for issuance. A total of Nil common shares remain eligible for issuance under the Plan. Subsequent to November 30, 2021, the Company approved, subject to shareholder approval, a 2022 Stock Option plan, whereby 1,000,000 common shares would be reserved for issuance. The options generally vest over a range of periods from the date of grant, some are immediate, and others are 12 or 24 months. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the common shares underlying them are returned to the reserve. The options generally have a contractual term of five years. Stock-Based Payment Award Activity A summary of stock option activity under the Plan as of November 30, 2021, and changes during the period then ended is presented below: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Price Contractual Value Options Shares $ Term $ Outstanding at August 31, 2021 410,000 1.34 2.26 - Granted 521,000 1.50 5.00 - Forfeited (10,000 ) 1.00 3.41 - Outstanding at November 30, 2021 921,000 1.43 2.76 28,700 Exercisable at November 30, 2021 380,000 1.37 1.80 15,200 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock for the options that were in-the-money at November 30, 2021. The following table summarizes information regarding the non-vested options outstanding as of November 30, 2021 and changes during the period then ended: Weighted Average Grant Date Number of Options Fair Value $ Non-vested options at August 31, 2021 98,750 0.48 Granted 521,000 1.11 Vested (73,750 ) 0.49 Forfeited (5,000 ) 0.49 Non-vested options at November 30, 2021 541,000 1.08 As of November 30, 2021, there was $534,838 of total unrecognized compensation cost related to non-vested stock-based compensation awards. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.21 years. Total stock-based compensation expense of $25,906 was recognized during the three month period ended November 30, 2021, (2020: $12,849) is reported in the statement of comprehensive income as follows: 2021 2020 $ $ Stock-based compensation General and administrative 2,424 4,531 Sales and marketing 13,950 4,644 Product development 9,532 3,674 Total stock-based compensation 25,906 12,849 Valuation Assumptions The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions: 2021 2020 Expected term of stock options (years) 3.25 3.25 Expected volatility 122.7% 105.4% Risk-free interest rate 0.35% 0.35% Dividend yields - - Weighted average grant date fair value $ 0.40 $ 0.34 Expected volatilities are based on historical volatility of the Company's stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the options is based on US Treasury bill rates in effect at the time of grant. [c] Employee Stock Purchase Plan The Company's 2011 Employee Stock Purchase Plan (the "Plan") became effective on February 22, 2011. Under the Plan, employees of the Company are able to contribute up to 5% of their annual salary into a pool which is matched equally by the Company in order to purchase Company shares under certain terms. Directors are able to contribute a maximum of $12,500 each for a combined maximum annual purchase of $25,000. The maximum annual combined contributions will be $400,000. All purchases are made through the Toronto Stock Exchange by a third-party plan agent. The third-party plan agent is also responsible for the administration of the Plan on behalf of the Company and the participants. During the three month period ended November 30, 2021, the Company recognized compensation expense of $17,227 (2020: $15,186) in salaries and wages on the consolidated statement of comprehensive income in respect of the Plan, representing the Company's employee matching of cash contributions to the Plan. During the three month period ended November 30, 2021, the shares were purchased on the open market at an average price of $1.48 (2020 : $0.67). The shares are held in trust for a period of one year from the date of purchase. [d] Earnings Per Share Net income per common share (basic) is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Net income per common share (diluted) is calculated by dividing net income 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. 2021 2020 $ $ Net Income 165,601 250,702 Weighted average shares outstanding 10,257,964 10,450,656 Dilutive impact of outstanding stock options 79,374 - Diluted weighted average common shares outstanding 10,337,338 10,450,656 At November 30, 2021, the Company had an aggregate of 921,000 (August 31, 2021: 410,000) stock options outstanding. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES [Text Block] | 7. CONTINGENCIES The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company's financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements. On September 5, 2017, the Company's former President and Chief Executive Officer filed a Notice of Civil Claim in the Supreme Court of British Columbia against the Company, its subsidiaries, independent directors and current Chief Executive Officer, claiming damages for conspiracy, breach of contract, wrongful dismissal, defamation and aggravated and punitive damages. The Company believes the claims are without merit and is defending itself against the claims. The quantum of loss, if any, is not determinable at this time and management believes it is unlikely that the outcome of this matter will have an adverse impact on its results of operations, cash flows and financial condition. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS [Text Block] | 8. NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Standards None |
CONCENTRATIONS AND ECONOMIC DEP
CONCENTRATIONS AND ECONOMIC DEPENDENCE | 3 Months Ended |
Nov. 30, 2021 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
CONCENTRATIONS AND ECONOMIC DEPENDENCE [Text Block] | 9. CONCENTRATIONS AND ECONOMIC DEPENDENCE The Company operates solely in the digital media software segment and all revenue from its products and services are made in this segment. Revenue from external customers, by product and location of customer, is as follows: 2021 2020 $ $ Play MPE® United States 577,149 533,460 Europe 484,336 508,317 Australia 64,032 75,779 Africa 6,954 3,528 Total Play MPE® Revenue 1,132,471 1,121,084 Clipstream ® United States 1,680 2,893 Total Clipstream ® Revenue 1,680 2,893 Total Revenue 1,134,151 1,123,977 Revenue in the above table is based on location of the customer's billing address. Some of these customers have distribution centres located around the globe and distribute around the world. During the three month period ended November 30, 2021, the Company generated 37% of total revenue from one customer respectively (2020 : 38%). It is in management's opinion that the Company is not exposed to significant credit risk. As at November 30, 2021, one customer represented $272,449 (or 48%) of the trade receivables balance (August 31, 2021, one customer represented $142,758 (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. |
COMPARATIVE FIGURES
COMPARATIVE FIGURES | 3 Months Ended |
Nov. 30, 2021 | |
Comparative figures [Abstract] | |
COMPARATIVE FIGURES [Text Block] | 10. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to the current period's presentation. These reclassifications did not affect prior periods' net earnings. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Nov. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS [Text Block] | 11. SUBSEQUENT EVENTS On December 17, 2021 the Company entered into an agreement to terminate the office lease effective January 31, 2022. The Company's lease was previously expected to terminate June 30, 2022. |
PROPERTY AND EQUIPMENT AND IN_2
PROPERTY AND EQUIPMENT AND INTANGIBLES (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment [Table Text Block] | Cost Accumulated amortization Net book value November 30, 2021 $ $ $ Property and equipment Furniture and fixtures 132,814 115,655 17,159 Computer hardware 297,888 235,062 62,826 Computer software 377,245 339,074 38,171 Leasehold improvement 157,449 144,742 12,707 965,396 834,533 130,863 Intangibles Software under development 236,724 6,189 230,535 Patents, trademarks and lists 443,333 426,420 16,913 680,057 432,609 247,448 Accumulated Net book Cost amortization value August 31, 2021 $ $ $ Property and equipment Furniture and fixtures 133,049 114,740 18,309 Computer hardware 293,930 231,180 62,750 Computer software 377,777 333,751 44,026 Leasehold improvements 157,934 139,532 18,402 962,690 819,203 143,487 Intangibles Software under development 167,069 - 167,069 Patents, trademarks and lists 441,178 420,625 20,553 608,247 420,625 187,622 |
RIGHT OF USE ASSET (Tables)
RIGHT OF USE ASSET (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Leases [Abstract] | |
Schedule of Right of Use Asset Continuity | Right of Use Asset Continuity November 30, 2021 August 31, 2021 $ $ Balance, September 1 190,253 403,961 Depreciation (57,284 ) (224,154 ) Foreign Currency Translation Adjustment (1,585 ) 10,446 Balance, End of Period 131,384 190,253 |
Schedule of operating lease payments | $ 2022 162,414 Total lease payments payable 162,414 Less amounts representing interest (4,113 ) Total Operating Lease Liability 158,301 Less current portion of operating lease liability (158,301 ) Long term portion of operating lease liability - |
Schedule of operating Lease Liability Continuity | Operating Lease Liability Continuity November 30, 2021 August 31, 2021 $ $ Balance, September 1 226,978 457,324 Less Lease Payments (70,873 ) (270,898 ) Interest 4,113 28,714 Foreign Currency Translation Adjustment (1,917 ) 11,838 Balance, End of Period 158,301 226,978 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock option activity [Table Text Block] | Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Price Contractual Value Options Shares $ Term $ Outstanding at August 31, 2021 410,000 1.34 2.26 - Granted 521,000 1.50 5.00 - Forfeited (10,000 ) 1.00 3.41 - Outstanding at November 30, 2021 921,000 1.43 2.76 28,700 Exercisable at November 30, 2021 380,000 1.37 1.80 15,200 |
Schedule of non-vested options activity [Table Text Block] | Weighted Average Grant Date Number of Options Fair Value $ Non-vested options at August 31, 2021 98,750 0.48 Granted 521,000 1.11 Vested (73,750 ) 0.49 Forfeited (5,000 ) 0.49 Non-vested options at November 30, 2021 541,000 1.08 |
Schedule of stock-based compensation expense [Table Text Block] | 2021 2020 $ $ Stock-based compensation General and administrative 2,424 4,531 Sales and marketing 13,950 4,644 Product development 9,532 3,674 Total stock-based compensation 25,906 12,849 |
Schedule of fair value assumptions using Black-Scholes option-pricing model [Table Text Block] | 2021 2020 Expected term of stock options (years) 3.25 3.25 Expected volatility 122.7% 105.4% Risk-free interest rate 0.35% 0.35% Dividend yields - - Weighted average grant date fair value $ 0.40 $ 0.34 |
Schedule of earnings per share, basic and diluted [Table Text Block] | 2021 2020 $ $ Net Income 165,601 250,702 Weighted average shares outstanding 10,257,964 10,450,656 Dilutive impact of outstanding stock options 79,374 - Diluted weighted average common shares outstanding 10,337,338 10,450,656 |
CONCENTRATIONS AND ECONOMIC D_2
CONCENTRATIONS AND ECONOMIC DEPENDENCE (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Schedule of revenue from external customers [Table Text Block] | 2021 2020 $ $ Play MPE® United States 577,149 533,460 Europe 484,336 508,317 Australia 64,032 75,779 Africa 6,954 3,528 Total Play MPE® Revenue 1,132,471 1,121,084 Clipstream ® United States 1,680 2,893 Total Clipstream ® Revenue 1,680 2,893 Total Revenue 1,134,151 1,123,977 |
SHORT TERM INVESTMENTS (Narrati
SHORT TERM INVESTMENTS (Narrative) (Details) | Nov. 30, 2021 |
Minimum [Member] | |
Schedule of Investments [Line Items] | |
Rate of investment interest | 0.10% |
Maximum [Member] | |
Schedule of Investments [Line Items] | |
Rate of investment interest | 2.36% |
PROPERTY AND EQUIPMENT AND IN_3
PROPERTY AND EQUIPMENT AND INTANGIBLES (Narrative) (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 27,172 | $ 24,315 |
PROPERTY AND EQUIPMENT AND IN_4
PROPERTY AND EQUIPMENT AND INTANGIBLES - Schedule of Property, Plant and Equipment (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | $ 965,396 | $ 962,690 |
Property and equipment, Accumulated amortization | 834,533 | 819,203 |
Property and equipment, Net book value | 130,863 | 143,487 |
Intangibles, Cost | 680,057 | 608,247 |
Intangibles, Accumulated amortization | 432,609 | 420,625 |
Intangibles, Net book value | 247,448 | 187,622 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 132,814 | 133,049 |
Property and equipment, Accumulated amortization | 115,655 | 114,740 |
Property and equipment, Net book value | 17,159 | 18,309 |
Computer hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 297,888 | 293,930 |
Property and equipment, Accumulated amortization | 235,062 | 231,180 |
Property and equipment, Net book value | 62,826 | 62,750 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 377,245 | 377,777 |
Property and equipment, Accumulated amortization | 339,074 | 333,751 |
Property and equipment, Net book value | 38,171 | 44,026 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Cost | 157,449 | 157,934 |
Property and equipment, Accumulated amortization | 144,742 | 139,532 |
Property and equipment, Net book value | 12,707 | 18,402 |
Software under development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Intangibles, Cost | 236,724 | 167,069 |
Intangibles, Accumulated amortization | 6,189 | 0 |
Intangibles, Net book value | 230,535 | 167,069 |
Patents, trademarks and lists [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Intangibles, Cost | 443,333 | 441,178 |
Intangibles, Accumulated amortization | 426,420 | 420,625 |
Intangibles, Net book value | $ 16,913 | $ 20,553 |
RIGHT OF USE ASSET (Narrative)
RIGHT OF USE ASSET (Narrative) (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Recognition of right of use asset | $ 671,911 | |
Weighted-average discount rate - operating leases | 8.00% | |
General and administrative expenses, research and development and sales and marketing [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Depreciation | $ 57,284 | $ 54,636 |
RIGHT OF USE ASSET - Schedule o
RIGHT OF USE ASSET - Schedule of Right of Use Asset Continuity (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Balance, Start of Period | $ 190,253 | |
Balance, End of Period | 131,384 | $ 190,253 |
Adoption of ASC 842 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Balance, Start of Period | 190,253 | 403,961 |
Depreciation | (57,284) | (224,154) |
Foreign Currency Translation Adjustment | (1,585) | (10,446) |
Balance, End of Period | $ 131,384 | $ 190,253 |
RIGHT OF USE ASSET - Schedule_2
RIGHT OF USE ASSET - Schedule of operating lease payment committed (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 | Aug. 31, 2020 |
Leases [Abstract] | |||
2022 | $ 162,414 | ||
Total lease payments payable | 162,414 | ||
Less amounts representing interest | (4,113) | ||
Total operating lease liability | 158,301 | $ 226,978 | $ 457,324 |
Less current portion of operating lease liability | (158,301) | (226,978) | |
Long term portion of operating lease liability | $ 0 | $ 0 |
RIGHT OF USE ASSET - Schedule_3
RIGHT OF USE ASSET - Schedule of Operating Lease Liability Continuity (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
Leases [Abstract] | ||
Balance, September 1 | $ 226,978 | $ 457,324 |
Less Lease Payments | (70,873) | (270,898) |
Interest | 4,113 | 28,714 |
Foreign Currency Translation Adjustment | (1,917) | (11,838) |
Balance, End of Period | $ 158,301 | $ 226,978 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) | Jan. 15, 2021 | Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | Aug. 31, 2015 |
Schedule of Stockholders Equity [Line Items] | |||||
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 | |||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | |||
Number of shares repurchased | 30,300 | ||||
Value of shares repurchased | $ 44,166 | ||||
Total number of shares repurchased | 215,585 | ||||
Total value of shares repurchased | $ 304,570 | ||||
Dilutive impact of money stock options | 79,374 | 0 | |||
Common stock shares reserved for issuance under stock option plan | 530,000 | ||||
Compensation cost not yet recognized | $ 534,838 | ||||
Compensation cost not yet recognized, period for recognition | 2 years 2 months 15 days | ||||
Stock-based compensation | $ 25,906 | $ 12,849 | |||
Defined Contribution Plan, Maximum Annual Contributions Per Director, Amount | 12,500 | ||||
Defined Contribution Plan, Maximum Annual Contributions for Directors, Amount | 25,000 | ||||
Defined Contribution Plan, Maximum Annual Contributions Amount | 400,000 | ||||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 17,227 | $ 15,186 | |||
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased | $ 1.48 | $ 0.67 | |||
Aggregate of stock options outstanding. | 921,000 | 410,000 | |||
2015 Stock Option Plan [Member] | |||||
Schedule of Stockholders Equity [Line Items] | |||||
Common stock reserved for issuance under stock option plan | 1,000,000 | ||||
Normal Course Issuer Bid ("NCIB") [Member] | |||||
Schedule of Stockholders Equity [Line Items] | |||||
Number of common shares purchase | 522,532 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Stock Option Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
Shares | ||
Outstanding Balance | 410,000 | |
Granted | 521,000 | |
Forfeited | (10,000) | |
Outstanding Balance | 921,000 | 410,000 |
Exercisable | 380,000 | |
Weighted Average Exercise Price | ||
Outstanding Balance | $ 1.34 | |
Granted | 1.50 | |
Forfeited | 1 | |
Outstanding Balance | 1.43 | $ 1.34 |
Exercisable | $ 1.37 | |
Weighted Average Remaining Contractual Term | ||
Granted | 5 years | |
Forfeited | 3 years 4 months 28 days | |
Weighted Average Remaining Contractual Term Outstanding Balance | 2 years 9 months 3 days | 2 years 3 months 3 days |
Weighted Average Remaining Contractual Term Exercisable | 1 year 9 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding Balance | $ 0 | |
Granted | 0 | |
Forfeited | 0 | |
Outstanding Balance | 28,700 | $ 0 |
Exercisable | $ 15,200 |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of Non-vested Stock Options Activity (Details) | 3 Months Ended |
Nov. 30, 2021$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Outstanding Balance | shares | 98,750 |
Weighted Average Grant Date Fair Value | $ / shares | $ 0.48 |
Granted | shares | 521,000 |
Options Weighted Average Grant Date Fair Value | $ / shares | $ 1.11 |
Vested | shares | (73,750) |
Vested, Weighted Average Grant Date Fair Value | $ / shares | $ 0.49 |
Forfeited | shares | (5,000) |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | $ 0.49 |
Outstanding Balance | shares | 541,000 |
Weighted Average Grant Date Fair Value | $ / shares | $ 1.08 |
STOCKHOLDERS' EQUITY - Schedu_3
STOCKHOLDERS' EQUITY - Schedule of Stock-based Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Stockholders' Equity Note [Abstract] | ||
General and administrative | $ 2,424 | $ 4,531 |
Sales and marketing | 13,950 | 4,644 |
Product development | 9,532 | 3,674 |
Total stock-based compensation | $ 25,906 | $ 12,849 |
STOCKHOLDERS' EQUITY - Schedu_4
STOCKHOLDERS' EQUITY - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Schedule of Stockholders Equity [Line Items] | ||
Expected term of stock options (years) | 3 years 3 months | 3 years 3 months |
Expected volatility | 122.70% | 105.40% |
Risk-free interest rate | 0.35% | 0.35% |
Dividend yields | 0.00% | 0.00% |
Weighted average grant date fair value | $ 0.40 | $ 0.34 |
STOCKHOLDERS' EQUITY - Schedu_5
STOCKHOLDERS' EQUITY - Schedule of earnings per share (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Net income | $ 165,601 | $ 250,702 |
Weighted average shares outstanding | 10,257,964 | 10,450,656 |
Dilutive impact of outstanding stock options | 79,374 | 0 |
Diluted weighted average common shares outstanding | 10,337,338 | 10,450,656 |
CONCENTRATIONS AND ECONOMIC D_3
CONCENTRATIONS AND ECONOMIC DEPENDENCE (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 564,677 | $ 400,233 | |
Customer Concentration Risk [Member] | One customer [Member] | Revenue Benchmark [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 37.00% | 38.00% | |
Customer Concentration Risk [Member] | One customer [Member] | Trade Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 272,449 | ||
Concentration risk, percentage | 48.00% | ||
Customer Concentration Risk [Member] | Two customers [Member] | Trade Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 142,758 | ||
Concentration risk, percentage | 36.00% |
CONCENTRATIONS AND ECONOMIC D_4
CONCENTRATIONS AND ECONOMIC DEPENDENCE - Schedule of Revenue by Customer (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Concentration Risk [Line Items] | ||
Revenue | $ 1,134,151 | $ 1,123,977 |
Play MPE [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 1,132,471 | 1,121,084 |
Play MPE [Member] | Europe [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 484,336 | 508,317 |
Play MPE [Member] | Australasia [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 64,032 | 75,779 |
Play MPE [Member] | Africa [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 6,954 | 3,528 |
Play MPE [Member] | United States [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 577,149 | 533,460 |
Clipstream [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 1,680 | 2,893 |
Clipstream [Member] | United States [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 1,680 | $ 2,893 |