Company: DSNY
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001062993-25-016994
Chunk: 453

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: 10-K
Item: Item 1
Chunk 453
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 to purchase common shares of the Company at the average trading price of common shares during the period, but only if dilutive.

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                            2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONT'D

                            Fair value measurements
                            The Company uses the fair value hierarchy to measure the value of its financial instruments. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity's pricing based upon its own market assumptions. The basis for fair value measurements for each level within the hierarchy is described below:

                                        Level 1 - Quoted prices for identical assets or liabilities in active markets.

                                Level 2 - Quoted prices for identical or similar assets and liabilities in markets that are not active; or other model-derived valuations whose inputs are directly or indirectly observable or whose significant value drivers are observable.
                                Level 3 - Valuations derived from valuation techniques in which one or more significant inputs to the valuation model are unobservable and for which assumptions are used based on management estimates.
                            
                            The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.
                            Trade receivables are presented net of an allowance for expected credit losses, which management believes represents the best estimate of the lifetime expected losses on these assets. Accordingly, the net carrying amount of trade receivables approximates their fair value.
                            The book value of cash and cash equivalents, accounts receivable, other receivables, deposits, accounts payable and accrued liabilities, and deferred revenue liabilities approximate their fair values due to the short-term maturity of those instruments. 

                            Recently Issued Accounting Pronouncements
                            The Company assesses the adoption impacts of recently issued accounting standards by the FASB or other standard setting bodies on the Company's consolidated financial statements as well as material updates to previous assessments. There were no new material accounting standards issued in years of 2024 and 2025 that impacted the Company. Management has also evaluated accounting standards issued but not yet effective and does not expect their adoption to have a material effect.

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                    3. PROPERTY AND EQUIPMENT, NET 

                                    August 31, 2025

                                    Property and Equipment