Company: DSNY
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001062993-25-016994
Chunk: 438

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: 10-K
Item: Item 1
Chunk 438
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                    216,604

                    155,134

                    61,470

                    39.6%

                    Product development expenses
                    $
                    1,768,604
                     
                    $
                    1,518,411

                    250,193

                    16.5%

Product development costs increased as a result of a lower capitalization rate associated with software development. This increase is partially offset by a reduction in overall staffing, as the Company prioritized increased productivity and operational efficiency. In addition, telecommunication expenses increased as a result of infrastructure investments related to the development of the MTR™ business.

Depreciation and Amortization

Depreciation and amortization expense increased to $833,614 for the year ended August 31, 2025 from $469,801 for the year ended August 31, 2024, an increase of 77.4% was due to depreciation of additionally capitalized software development costs associated with  MTRTM, and recently capitalized additions to Play MPE platform.

Other Income

Interest income earned on the Company's mutual funds was $25,189 for the year ended August 31, 2025 (2024 - $51,201). The interest income decreased by 50.8% year over year mostly due to decreased interest rates.

Net Income (Loss)

For the year ended August 31, 2025, we reported a net loss of $637,877 (2024 - net income of $111,758).

For the year ended August 31, 2025, adjusted EBITDA was $202,276 (2024 - $577,284). 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 to Adjusted EBITDA provide further clarity on