Company: DSNY
Filing Date: 2025-01-14
Form Type: 10-Q
Source: 0001062993-25-000745
Chunk: 11

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-01-14
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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876  (3,297) (18.4%) Telecommunications 56,008  33,346  22,662  68.0% Product development expenses$412,044 $308,547  103,497  33.5% The increase in wages and benefits is linked to a lower amount capitalized to capital software assets and software under development intangible assets in the current period. During the comparative period, the Company prioritized the development of its new product, MTR™, which subsequently underwent a beta launch in the summer of 2023. Following the launch, there has been a reduction in the capitalization of wages and salaries associated with the MTR™ product.Depreciation and AmortizationDepreciation and amortization expense increased to $166,979 for the three months ended November 30, 2024 from $81,098 for the three months ended November 30, 2023, an increase of 105.9% due to depreciation of additionally capitalized software development costs associated with Play MPE® recipient player applications during the period.Other IncomeInterest income earned on the Company's mutual funds was $8,408 for the three months ended November 30, 2024 (November 30, 2023 - $11,526).Net Income (Loss)During the three months ended November 30, 2024 the Company reported a net income of $118,140 (November 30, 2023 - $249,516).16For the three months ended November 30, 2024, adjusted EBITDA was $287,470 (November 30, 2023 - $332,893).  Adjusted EBITDA is not defined under U.S. GAAP, and it may not be comparable to similarly titled measures reported by other companies. We used Adjusted EBITDA, along with other GAAP measures, as a measure of our profitability because Adjusted EBITDA helps us to compare our performance on a consistent basis by removing from our operating results the impact of our capital structure, the effect of operating in different tax jurisdictions, the impact of our asset base, which can differ depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments and the effect of non-cash stock-based compensation expense.We believe Adjusted EBITDA is useful to investors as it is a widely used measure of performance and the adjustments we make