Company: DSNY
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001062993-25-016994
Chunk: 188

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: 10-K
Item: Item 5
Chunk 188
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, intangible assets, amortization expense, recoverability of accounts receivable and valuation of stock-based compensation.

                    2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                            Cash and cash equivalents
                            The Company's cash includes 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 2.3% - 2.9%.

                            Concentrations of credit risk
                            Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.

                            Accounts receivable
                            Trade receivables are amounts due from customers for services rendered in the ordinary course of business. Accounts receivable are non-interest bearing and are due for settlement in full within 30-60 days, depending on a contract. Trade receivables are shown net of allowance for bad or doubtful accounts.

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                            2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONT'D

                            Allowance for doubtful accounts
                            The Company establishes an allowance for doubtful accounts to ensure trade and other receivables are not overstated due to non-collectability. The Company's allowance is based on a variety of factors, including age of the receivable, significant one-time events, historical experience, and other risk considerations. The amount ultimately realized from trade accounts receivable may differ from the amount estimated in the consolidated financial statements based on collection experience. The Company had $82,184 and $30,624 in allowance at August 31, 2025 and 2024, respectively. The Company recorded a bad debt of $51,055 and recovery of $2,700 for the years ended August 31, 2025 and 2024, respectively.

                            Property and equipment, net
                            Property and equipment are recorded at cost, less accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the asset and is calculated using the following rates, commencing upon utilization of the assets: 

                                            Furniture and fixtures
                                            20%

                                            Computer hardware
                                            30%

                                            Computer software
                                            50%

                            Expenditures for