Company: DSNY
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001062993-25-016994
Chunk: 208

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: 10-K
Item: Item 6
Chunk 208
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 in US dollars. Thus, operating expenses and the results of operations are impacted, to the extent they are not hedged, by the rise and fall of the relative values of the Canadian dollar to these currencies. The Company maintains a large portion of its financial reserves in Canadian dollars to mitigate the downside risk of adverse exchange rates on its operating expenditures.

                General and administrative expenses consist of salaries and related personnel costs including overhead, office rent, professional fees, shareholder relations, and general office expenses.
                Sales and marketing expenses consist of salaries and related personnel costs including overhead, office rent, and telecommunications costs.  Sales and marketing expenses also include advertising and marketing expenditures, which consist of promotional materials, online or print advertising, business development tools, and marketing or business development related travel costs, including attendance at conference or trade shows, and record label and client visits.
                Product development expenses consist primarily of salaries and related personnel costs including overhead and consulting fees with respect to product development and deployment.

                12

RESULTS OF OPERATIONS FOR THE YEARS ENDED AUGUST 31, 2025 AND 2024

Revenue

Total revenue for the year ended August 31, 2025 increased by 2.3% to $4,524,448 compared to the revenue of $4,420,768 for the year ended August 31, 2024. Adjusted for impacts of foreign currency translation, Play MPE® revenue increased 2.6% year over year.

Revenue growth was driven by a 6.8% increase in the Company's major label segment. Play MPE®'s distribution services also extend to large independent labels, promotion professionals, smaller record labels, and artists-collectively referred to as independent labels.

The Company achieved a 7.4% increase in total independent customers, reflecting improved marketing and customer conversion. Despite this growth, average spending from larger record labels and promoters declined, influenced by macroeconomic conditions. As a result, independent label revenue decreased by 3.4%, partially offsetting gains from the major label segment.

The United States independent label segment, representing approximately 40% of total Play MPE® revenue, experienced a 5.3% increase in its customer base but a 4.4% decline in segment revenue, driven by smaller average purchase sizes. Outside the U.S., independent label revenue increased by 3.3%, supported by international customer growth. Management believes the spending contraction within the U.S. segment is temporary and anticipates recovery as market conditions improve. In