Company: DSNY
Filing Date: 2025-07-14
Form Type: 10-Q
Source: 0001062993-25-012768
Chunk: 38

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-07-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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  62,508  62.2% Product development expenses$1,263,749 $1,084,329  179,420  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 $541,128 for the nine months ended May 31, 2025 from $255,884 for the nine months ended May 31, 2024, an increase of 111.5%. This increase was due to the depreciation of recently capitalized additions in the Play MPE® Player and Caster computer software applications.

Other Income

Interest income earned on the Company's mutual funds was $19,870 for the nine months ended May 31, 2025 (May 31, 2024 - $40,672).

18

Net Income 

During the three and nine months ended May 31, 2025 the Company reported a net loss of $72,288 and $256,242, respectively (May 31, 2024 - a net income $134,476 and $253,980, respectively).

For the three and nine months ended May 31, 2025, adjusted EBITDA was $122,097 and $292,848, respectively (May 31, 2024 - $219,910 and $505,011, respectively). 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