Company: DSNY
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001062993-25-016994
Chunk: 8

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: 10-K
Item: Item 1A
Chunk 8
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 and increasing purchase volumes among both existing and new customers. Notably, 1.4% of Play MPE® sales during the year originated through MTR™ sales, demonstrating early cross-platform synergies and growth potential.

Revenue by Currency

The Company's revenues are denominated predominantly in US Dollars, Euros and Australian Dollars.

                    % of Total Revenue

                    Currency
                    2025
                    2024

                    US Dollar
                    91.8%
                    48.1%

                    Euro
                    1.2%
                    45.0%

                    Australian Dollar
                    3.5%
                    4.3%

                    Other
                    3.5%
                    2.6%

The shift in currency mix year-over-year is primarily attributable to one major customer transitioning its billing arrangement from Euros to U.S. Dollars during the fiscal year.

Cost of Revenue 

Cost of revenue for the year ended August 31, 2025 increased by 12.5% to $686,553 compared to the cost of revenue of $610,527 for the year ended August 31, 2024.

The Company's cost of revenue primarily includes data hosting and processing, third-party transaction costs, and engineering, technical, and customer support expenses. These costs are influenced by transaction volume and the mix between full-service and self-service customers, with self-service users uploading and publishing releases independently and full-service customers supported by internal staff.

                13

Gross Margin

Gross margin for the year ended August 31, 2025 was 84.8% of revenue, which represents a 1.4 percentage point decrease compared to the year ended August 31, 2024. This decline in gross margin is primarily caused by infrastructure required to build out the MTR™ business.

Operating Expenses

Operating costs during the year ended August 31, 2025 increased by 20.0% to $4,500,961 (2024 - $3,749,684). The increase in operating costs was primarily the result of the following:

                An increase of 77.4% in (non-cash) amortization expenditures, primarily related to the capitalization of salaries and wages in previous periods. This increase contributed a 9.7% increase to overall expenditures.
                A one-time, non-repeating cost associated with litigation increasing total costs by 6.6%.  On October 24, 2025, the Company received a favorable judgement. All claims have been