Company: DSNY
Filing Date: 2025-04-14
Form Type: 10-Q
Source: 0001062993-25-007398
Chunk: 15

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-04-14
Form: 10-Q
Item: Part I, Item 2
Chunk 15
---
 on the Company's investments was $14,901 for the six months ended February 28, 2025 (February 29, 2024 - $26,987).

18

Net Income (Loss)

During the three and six months ended February 28, 2025 the Company reported a net loss of $302,094 and net loss of $183,954, respectively (February 29, 2024 - net loss of $130,012 and net income of $119,504, respectively).

For the three and six months ended February 28, 2025, adjusted EBITDA was $(116,719) and $170,751, respectively (February 29, 2024 - $(47,792) and $285,101, 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 EBITDA provide further clarity on our profitability. We remove the effect of non-cash stock-based compensation from our earnings which can vary based on share price, share price volatility, and expected life of the equity instruments we grant. In addition, this stock-based compensation expense does not result in cash payments by the Company. Adjusted EBITDA has limitations as a profitability measure in that it does not include provisions for income taxes, the effect of our expenditures on capital assets, the effect of non-cash stock-based compensation expense and the effect of asset impairments. The following is a reconciliation of net income from operations to Adjusted EBITDA:

  Q2 2025  Q1 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024  Q4 2023  Q3 2023