Company: DSNY
Filing Date: 2025-04-14
Form Type: 10-Q
Source: 0001062993-25-007398
Chunk: 58

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-04-14
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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26,987  (12,086)Net income $ (183,954) $119,504 $(303,458)

Revenue

Total revenue for the six months ended February 28, 2025 was $2,245,729 compared to the revenue of $2,141,140 for the six months ended February 29, 2024, an increase of 4.9% period over period. 

Gross Margin

Gross margin for the six months ended February 28, 2025 was 86.4% of revenue, compared to 86.0% for the six months ended February 29, 2024. The Company's cost of revenue consists of data hosting and processing charges, third party transaction related costs, and engineering, technical and customer support costs.  These costs are driven by the size and volume of customer transactions processed, as well as the relative proportion of "full-service" versus "self-service" revenue. Our self-service sales are derived from customers who have been provided with a customer account to access our encoder to independently upload and publish releases. Our full-service revenue is derived from customers who are fully serviced by our internal staff, who prepare and publish releases on their behalf. 

Operating Expenses

Operating costs during the six months ended February 28, 2025 increased by 22.2% to $2,139,182 ( February 29, 2024 - $1,749,859).  This rise can be primarily attributed to the following factors:

A one-time, non-repeating cost associated with litigation increasing total costs by 14.2%.  This litigation is currently awaiting adjudication and the Company is confident in a positive outcome.A non-cash increase in amortization costs that grew overall costs by 10.4%.A reduction in salaries and wages reducing overall expenditures by 1.0%. 

For ease of reference the following table has been prepared to present operating results had the Company not capitalized software for the six months ended February 28, 2025 and February 29, 2024.

  Six Months Ended   February 28, 2025  February 29, 2024 Net income for the period$ (183,954)$119,504 Capitalized software under development  (202,704) (280,182)Adjustment to amortization for capitalized software 336,394  206,714 Adjusted net loss for the period$(