What changed in this filing

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Item 1. Financial Statements

2021-07-14 compared with 2021-04-14 · 64 added, 57 removed, 275 unchanged (31% of the section changed)

2 unchanged sentences

Destiny Media Technologies Inc.

February 28, 2021

(Expressed in United States dollars)

4 unchanged sentences

Short-term investments [note 3]

Accounts receivable, net of allowance for

doubtful accounts of $19,537, [August 31, 2020 – $23,412]

Accounts receivable, net of allowance for doubtful accounts of $20,618, [August 31, 2020 - $23,412]

Other receivables

26 unchanged sentences

Destiny Media Technologies Inc.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

(Expressed in United States dollars)

12 unchanged sentences

Interest income

Net income (loss)

Other income (loss)

Net income per common share,

Weighted average common shares outstanding:

Diluted [note 6]

See accompanying notes

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Expressed in United States dollars)

Net income for the period

Other comprehensive income (loss)

Foreign currency translation adjustments

Total comprehensive income (loss)

Net income (loss) per common share,

basic and diluted

Weighted average common shares outstanding:

Basic and diluted

Comprehensive income (loss)

See accompanying notes

2 unchanged sentences

(Expressed in United States dollars)

Three months ended February 28, 2021 and February 29, 2020

Three months ended May 31, 2021 and 2020

stockholders'

comprehensive

Balance, November 30, 2020

Balance, February 28, 2021

Total comprehensive income (loss)

1 unchanged sentence

Common shares retired

Balance, May 31, 2021

Balance, February 29, 2020

Balance, November 30, 2019

Total comprehensive loss

Stock based compensation [note 6]

Common shares retired

Balance, February 29, 2020

Balance, May 31, 2020

See accompanying notes

2 unchanged sentences

(Expressed in United States dollars)

Six months ended February 28, 2021 and February 29, 2020

Nine months ended May 31, 2021 and 2020

stockholders'

4 unchanged sentences

Common shares retired

Balance, February 28, 2021

Balance, May 31, 2021

Balance, August 31, 2019

2 unchanged sentences

Common shares retired

Balance, February 29, 2020

Balance, May 31, 2020

See accompanying notes

1 unchanged sentence

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

Six months ended February 28, 2021 and February 29, 2020

Nine months ended May 31, 2021 and 2020

(Expressed in United States dollars)

OPERATING ACTIVITIES

Net income (loss)

Items not involving cash:

15 unchanged sentences

Purchase of property, equipment and intangibles

Development of software

Net cash provided by (used in) investing activities

13 unchanged sentences

FINANCIAL STATEMENTS

February 28, 2021

Destiny Media Technologies Inc.

9 unchanged sentences

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for the six months ended February 28, 2021 are not necessarily indicative of the results that may be expected for the year ended August 31, 2021.

Operating results for the nine months ended May 31, 2021 are not necessarily indicative of the results that may be expected for the year ended August 31, 2021.

The balance sheet at August 31, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for annual financial statements.

9 unchanged sentences

FINANCIAL STATEMENTS

February 28, 2021

SHORT TERM INVESTMENTS

The Company's short-term investments consists of one-year Guaranteed Investment Certificates with a major Canadian financial institution that earn interest at variable interest rates ranging from 0.10% - 2.36%.

As at February 28, 2021, the Company's short-term investments had reached maturity, and are included in cash and cash equivalents.

As at May 31, 2021, the Company's short-term investments had reached maturity, and are included in cash and cash equivalents.

PROPERTY AND EQUIPMENT AND INTANGIBLES

February 28, 2021

Property and equipment

2 unchanged sentences

Computer software

Leasehold improvement

Leasehold improvements

Software under development

Patents, trademarks and lists

6 unchanged sentences

Patents, trademarks and lists

Depreciation and amortization for the six months ended February 28, 2021 was $50,715 (2020:

Depreciation and amortization for the three and nine month periods ended May 31, 2021 was $26,673 and $77,388 (2020:

$33,194 and $100,744 respectively).

Destiny Media Technologies Inc.

1 unchanged sentence

FINANCIAL STATEMENTS

February 28, 2021

RIGHT OF USE ASSET

3 unchanged sentences

Right of Use Asset Continuity

February 28, 2021

August 31, 2020

10 unchanged sentences

Operating Lease Liability Continuity

February 28, 2021

August 31, 2020

3 unchanged sentences

Balance, End of Period

During the three and six month periods ended February 28, 2021 the Company recorded depreciation expense of $56,455 and $111,091 respectively (February 29, 2020:

$52,821 and $107,457 respectively) which has been allocated between general and administrative expenses, research and development and sales and marketing on the consolidated statement of comprehensive income (loss).

During the three and nine month periods ended May 31, 2021 the Company recorded depreciation expense of $56,376 and $167,468 respectively (May 31, 2020:

$52,930 and $160,387 respectively) which has been allocated between general and administrative expenses, research and development and sales and marketing on the consolidated statement of income.

The total rent commitment, net of the leasehold improvement allowance, is being amortized to rent expense on a straight-line basis over the term of the lease.

2 unchanged sentences

FINANCIAL STATEMENTS

February 28, 2021

STOCKHOLDERS' EQUITY

2 unchanged sentences

Effective January 15, 2021, the Company commenced a Normal Course Issuer Bid (NCIB), pursuant to which the Company may purchase up to a maximum of 522,532 common shares, through the TSX Venture Exchange (the "TSX") at the market price at the time of purchase, subject to daily limits and compliance with the applicable rules of the TSX and Canadian securities laws.

During the three and six month periods ended February 28, 2021, the Company repurchased and cancelled 41,285 common shares for $45,004 (February 29, 2020:

During the three month periods ended May 31, 2021, the Company repurchased and cancelled 114,400 common shares for $173,678.

For the nine month period ended May 31, 2021 155,685 common shares for $218,682 were repurchased (May 31, 2020:

550,140 common shares for $533,223 under a NCIB Effective September 16, 2019).

6 unchanged sentences

Stock-Based Payment Award Activity

A summary of stock option activity under the Plans as of February 28, 2021, and changes during the period then ended is presented below:

A summary of stock option activity under the Plans as of May 31, 2021, and changes during the period then ended is presented below:

Exercise Price

Outstanding at August 31, 2020

Outstanding at February 28, 2021

Exercisable at February 28, 2021

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock for the options that were in-the-money at February 28, 2021.

Outstanding at May 31, 2021

Exercisable at May 31, 2021

For the three and nine month period ended May 31, 2021, the dilutive impact of in the money stock options was 104,474 and 114,633 respectively (2020:

Destiny Media Technologies Inc.

1 unchanged sentence

FINANCIAL STATEMENTS

February 28, 2021

STOCKHOLDERS' EQUITY (cont'd.)

[b] Stock option plans (cont'd.)

The following table summarizes information regarding the non-vested options outstanding as of February 28, 2021 and changes during the period then ended:

The following table summarizes information regarding the non-vested options outstanding as of May 31, 2021 and changes during the period then ended:

Number of Options

Non-vested options at August 31, 2020

Non-vested options at February 28, 2021

As of February 28, 2021, there was $43,192 of total unrecognized compensation cost related to non-vested stock-based compensation awards.

Non-vested options at May 31, 2021

As of May 31, 2021, there was $29,574 of total unrecognized compensation cost related to non-vested stock-based compensation awards.

The unrecognized compensation cost is expected to be recognized over a weighted average period of 0.85 years.

During the six months ended February 28, 2021, the total stock-based compensation expense of $25,983 (February 29, 2020:

$20,633) is reported in the statement of comprehensive income (loss) as follows:

During the nine months ended May 31, 2021, the total stock-based compensation expense of $39,117 (May 31, 2020:

$35,909) is reported in the statement of income as follows:

Stock-based compensation

13 unchanged sentences

FINANCIAL STATEMENTS

February 28, 2021

STOCKHOLDERS' EQUITY (cont'd.)

11 unchanged sentences

The third-party plan agent is also responsible for the administration of the Plan on behalf of the Company and the participants.

During the six months ended February 28, 2021, the Company recognized compensation expense of $52,857 (February 29, 2020 - $32,422) in salaries and wages on the consolidated statement of comprehensive income in respect of the Plan, representing the Company's employee matching of cash contributions to the Plan.

The shares were purchased on the open market at an average price of $0.81 (February 29, 2020:

During the nine months ended May 31, 2021, the Company recognized compensation expense of $71,938 (May 31, 2020 - $53,369) in salaries and wages on the consolidated statement of income in respect of the Plan, representing the Company's employee matching of cash contributions to the Plan.

The shares were purchased on the open market at an average price of $0.99 (May 31, 2020:

The shares are held in trust by the Company for a period of one year from the date of purchase.

9 unchanged sentences

FINANCIAL STATEMENTS

February 28, 2021

NEW ACCOUNTING PRONOUNCEMENTS

3 unchanged sentences

Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13").

Financial Instruments-Credit Losses (Topic 326) amends guidance on reporting credit losses for assets held on an amortized cost basis and available-for-sale debt securities.

Financial Instruments-Credit Losses (Topic 326) amends guidance on reporting credit losses for assets held

on an amortized cost basis and available-for-sale debt securities.

For assets held on an amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses.

9 unchanged sentences

The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

CONCENTRATIONS AND ECONOMIC DEPENDENCE

The Company operates solely in the digital media software segment and all revenue from its products and services are made in this segment.

Revenue from external customers, by product and location of customer, is as follows:

Destiny Media Technologies Inc.

1 unchanged sentence

FINANCIAL STATEMENTS

February 28, 2021

FAIR VALUE MEASUREMENTS

The following table presents the classification of financial assets that are measured at fair value on a recurring basis as of May 31, 2021 and August 31, 2020.

Cash and cash equivalents

Total financial assets

August 31, 2020

Cash and cash equivalents

Short-term investments

Total financial assets

The company has no financial liabilities subject to level 1, 2 or 3 fair value measurements.

CONCENTRATIONS AND ECONOMIC DEPENDENCE

The Company operates solely in the digital media software segment and all revenue from its products and services are made in this segment.

Revenue from external customers, by product and location of customer, is as follows:

Three Months Ended

Six Months Ended

Nine months Ended

North America

2 unchanged sentences

Total revenue

Destiny Media Technologies Inc.

NOTES TO CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

CONCENTRATIONS AND ECONOMIC DEPENDENCE (cont'd.)

Revenue in the above table is based on location of the customer's billing address.

Some of these customers have distribution centers located around the globe and distribute around the world.

During the six months ended February 28, 2021, the Company generated 42% of total revenue from one customer (February 29, 2020 - 44%).

During the nine months ended May 31, 2021, the Company generated 42% of total revenue from one customer (May 31, 2020 - 43%).

It is in management's opinion that the Company is not exposed to significant credit risk.

As at February 28, 2021, one customer represented $145,541 (or 44%) of the trade receivables balance (August 31, 2020, two customers represented $275,620 (or 65%)).

As at May 31, 2021, one customer represented $147,872 (or 37%) of the trade receivables balance (August 31, 2020, two customers represented $275,620 (or 65%)).

The Company has substantially all its assets in Canada and its current and planned future operations are, and will be, located in Canada.

3 unchanged sentences

SUBSEQUENT EVENTS

On March 31, 2020, a further 23,800 shares of common stock were repurchased under the NCIB and cancelled.

On June 30, 2021, a further 15,000 shares of common stock were repurchased under the NCIB and cancelled.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements