Company: DSNY
Filing Date: 2025-07-14
Form Type: 10-Q
Source: 0001062993-25-012768
Chunk: 33

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-07-14
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 period last year. This decrease in gross margin is caused by infrastructure required to build out the MTR™ business.

Operating Expenses

Operating costs during the three months ended May 31, 2025 increased by 18.6% to $1,049,348 (May 31, 2024 - $884,607). The increase in operating costs was primarily the result of the following:

A non-cash increase in amortization costs that grew overall costs by 11.6%.Telecommunication expenses contributed to a 1.6% increase in total costs, primarily driven by infrastructure requirements related to the launch of the MTR™ product.A non-recuring recruitment fee that contributed with a 3.2% increase in total costs for the quarter.

For ease of reference the following table has been prepared to present operating results had the Company not capitalized software development salaries for the three months ended May 31, 2025 and 2024.

  Three Months Ended   May 31, 2025  May 31, 2024 Net income (loss) for the period$(72,288)$134,476 Capitalized software under development (82,592) (123,695)Adjustment to depreciation of capitalized computer software 185,137  80,598 Adjusted net income for the period$30,257 $91,379 

15

  Three Months Ended       General and administrative expenses May 31, 2025  May 31, 2024  $ Change  % Change Wages and benefits$94,878 $80,200  14,678  18.3% Professional fees 16,802  13,258  3,544  26.7% Office and miscellaneous 29,600  26,521  3,079  11.6% Shareholder relations 14,998  10,579  4,419  41.8% Rent 14,177  10,168  4,009  39.4% Foreign exchange loss 28,615  2,555  26,060  1020.0% Telecommunications 4,744  4,306  438  10.2% Bad debt (2,960) 2,746  (5,706) (207