Company: DSNY
Filing Date: 2025-07-14
Form Type: 10-Q
Source: 0001062993-25-012768
Chunk: 35

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-07-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 infrastructure investments related to the development of the MTR™ business.

Depreciation and Amortization

Depreciation and amortization expense increased to $190,425 for the three months ended May 31, 2025, from $87,760 for the three months ended May 31, 2024, an increase of 117.0%. This increase was due to the depreciation of newly enhanced features in the Play MPE® Player and Caster computer software applications and the launch of a new product MTR.

Other Income

Interest income earned on the Company's mutual funds was $4,969 for the three months ended May 31, 2025 (May 31, 2024 - $13,685).

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RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED MAY 31, 2025 AND 2024

  Nine Months Ended      May 31, 2025  May 31, 2024  Change Service revenue$3,379,692 $3,296,582 $83,110 Cost of revenue 467,274  448,808  18,466 Gross margin 2,912,418  2,847,774  64,644 Operating expenses 3,188,530  2,634,466  554,064 Income (loss) from operations (276,112) 213,308  (489,420)Other income 19,870  40,672  (20,802)Net income (loss)$(256,242)$253,980 $(510,222)

Revenue

Total revenue for the nine months ended May 31, 2025 was $3,379,692 compared to the revenue of $3,296,582 for the nine months ended May 31, 2024, an increase of 2.5% period over period that was driven mostly by our Major Label customers. After adjusting for foreign exchange rates, the Company's revenue for the nine-month period grew by 2.8%.

Gross Margin

Gross margin for the nine months ended May 31, 2025 was 86.2% of revenue, compared to 86.4% for the same period in 2024, reflecting overall margin stability year-over-year. The slight decrease was primarily due to infrastructure investments related to the build-out of the MTR™ business, which impacted