Company: DSNY
Filing Date: 2025-07-14
Form Type: 10-Q
Source: 0001062993-25-012768
Chunk: 36

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-07-14
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 margins in the most recent quarter.

Operating Expenses

Operating costs during the nine months ended May 31, 2025 increased by 21.0% to $3,188,530 (May 31, 2024 - $2,634,466). This rise can be primarily attributed to the following factors:

A one-time, non-repeating cost associated with litigation increasing total costs by 9.4%. This litigation is currently awaiting adjudication and the Company is confident in a positive outcome.Due to the capitalization of salaries and wages in previous periods, depreciation of computer software increased in the nine-month period, resulting in a 10.8% rise in total operating expenses.

Telecommunication expenses contributed to a 2.0% increase in total costs, primarily driven by infrastructure requirements related to the launch of the MTR™ product.

The above increases were partially offset by a reduction in overall staffing, as the Company prioritized increased productivity and operational efficiency.

For ease of reference the following table has been prepared to present operating results had the Company not capitalized software development salaries for the nine months ended May 31, 2025 and 2024.

  Nine Months Ended   May 31, 2025  May 31, 2024 Net income (loss) for the period$(256,242)$253,980 Capitalized software under development (285,297) (404,652)Adjustment to depreciation of capitalized computer software 521,531  233,187 Adjusted net income (loss) for the period$(20,008)$82,515 

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  Nine Months Ended       General and administrative expenses May 31, 2025  May 31, 2024  $ Change  % Change Wages and benefits$258,148 $244,475  13,673  5.6% Professional fees 277,640  55,688  221,952  398.6% Office and miscellaneous 83,132  75,385  7,747  10.3% Shareholder relations 57,032  65,875  (8,843) (13.4%) Rent 37,309  30,714  6,595  21.5% Foreign exchange loss (gain) (4,061) 841  (4,902)