DESTINY MEDIA TECHNOLOGIES INC Finansinės būklės ir veiklos rezultatų valdymo ir analizės aptarimas. (forma 10-x)

perspektyviniai pareiškimai

The following discussion should be read in conjunction with the accompanying
financial statements and notes thereto included within this Quarterly Report on
Form 10-Q. In addition to historical information, the information in this
discussion contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended (the "Securities Act"), and Section
21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").
These forward-looking statements involve risks and uncertainties, including
statements regarding the Company's capital needs, business strategy and
expectations. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking statements.

In some cases, you can identify forward-looking statements by terminology such
as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe",
estimate", "predict", "potential" or "continue", the negative of such terms or
other comparable terminology. Actual events or results may differ materially. In
evaluating these statements, you should consider various factors described in
this Quarterly Report, including the risk factors under "Item 1A. Risk Factors."
of part II, and, from time to time, in other reports the Company files with the
Securities and Exchange Commission. These factors may cause the Company's actual
results to differ materially from any forward-looking statement. The Company
disclaims any obligation to publicly update these statements or disclose any
difference between its actual results and those reflected in these statements.
Such information constitutes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.

Įmonės apžvalga ir pagrindinė informacija

Destiny Media Technologies Inc. was incorporated in August 1998 under the laws
of the State of Colorado and the corporate jurisdiction was changed to Nevada
effective October 8, 2014. We carry out our business operations through our
wholly owned subsidiary, Destiny Software Productions Inc., a British Columbia
company that was incorporated in 1992, MPE Distribution, Inc. a Nevada company
that was incorporated in 2007 and Sonox Digital Inc. incorporated under the
Canada Business Corporations Act in 2012. The "Company", "Destiny Media",
"Destiny", "we" or "us" refers to the consolidated activities of all four
companies.

Mūsų pagrindinis vykdomasis biuras yra Suite 1110, 885 Vakarų Džordžijos gatvėIr Vankuveris, Britų Kolumbija V6C 3E8. Mūsų telefono numeris yra (604) 609-7736, o fakso numeris – (604) 609-0611.

Prekiaujama mūsų paprastomis akcijomis TSX projektų mainai a Kanada Po simboliu „DSY“, OTCQB mes (“OTCQB”) su simboliu “DSNY” ir įvairiose Vokietijos vertybinių popierių biržose (FrankfurtasIr BerlynasIr Štutgartas ir Xetra) su simboliu DME, WKN 935 410.

Mūsų įmonės svetainė yra adresu http://www.dsny.com.

Mūsų produktai ir paslaugos

Destiny develops and markets software as a service (SaaS) solutions that solve
critical digital distribution and promotion problems for businesses in the music
industry. The core of our business is Play MPE®. Play MPE® is a service for
promoting and securely distributing broadcast quality audio, video, images,
promotional information and other digital content through the internet. The
system is currently used by the recording industry for transferring pre-release
broadcast quality music, radio shows, and music videos to trusted recipients
such as radio stations, media reviewers, VIP's, DJ's, film and TV personnel,
sports stadiums and retailers. Music is protected by Play MPE®'s patented
proprietary watermarking system which provides watermarks unique to each
recipient.

Destiny is currently developing additional functionality and services that are
expected to increase the services to existing platform users and therefore
expand Play MPE®'s addressable market, or act as catalysts to the Company's
sales activities. As well, the Company is investing into research and
development on incremental product offerings expected to add addressable market
opportunities.

————————————————— ——————————-

Žaisti MPE®

The Company's core business is the Play MPE® platform. Play MPE® is a two-sided
B2B marketplace that enables music labels and artists to distribute promotional
content and musical assets on the one side, and for music broadcasting
professionals, music curators and music reviewers to discover, download,
broadcast and review the music, on the other. Play MPE® provides a
software-based tool to assist record labels and artists in marketing their
music. Record labels and artists are Play MPE®'s customers and pay for
submission into the system. Recipients are provided no charge access to review
music. When adding music to the Play MPE® system, record labels are targeting
specific industry recipients who review and broadcast their music. With this
marketing effort, record labels are targeting an increase in their revenue
directly through on-air broadcast royalties, streaming royalties and
synchronization revenue (revenue when the reproduction of a song is coordinated
with video advertisements, television, or film), and indirect increases in
revenue through growing song and artists' popularity (for example concert ticket
sales etc.).

Customers range from small independent artists, to the world's largest record
labels; (the "Major Record Labels") (Universal Music Group ("Universal"), Warner
Music Group "Warner" and Sony Music Entertainment "Sony"). Customers choose Play
MPE® for its powerful set of tools, ease of use and its effectiveness in
achieving the record label's promotional objectives. Recipients enjoy easy
access to desirable music in high quality audio files.

Veikia MPE® CASTER (platinimo programinė įranga)

Play MPE®'s Caster is a full-service distribution management system that
includes a complete set of operational functions that provide all necessary
software tools to enable labels to manage global marketing campaigns. Broadly,
these components include administration functions and distribution functions.
Administration functions allow management of labels and sub-labels, management
of the assets (audio files, video files, and associated cover art, artist
information) that are distributed, and management of client-side users and user
permissions (roles with selectable capabilities). Distribution management
functions offer powerful contacts management capabilities, release creation,
distribution announcements and distribution scheduling, digital rights
management by release and by recipient, and release replication and its
associated scheduling and digital rights management components.

This full suite of tools within Play MPE® was developed for the music industry
and in close collaboration with Universal to cater the functions to its global
marketing workflow. Many clients do not use the full suite of tools. However,
this full set of tools is critical to Universal's global promotional campaign
workflow and the core reason Play MPE® distributes internationally for
Universal.

Ratukas yra anglų, ispanų, vokiečių, japonų ir prancūzų kalbomis.

Play MPE® is a permissions-only access system such that only recipients
designated or targeted to receive content obtain access to that content. Record
labels can use Play MPE®'s contacts management system to administer recipient
lists. Contacts management offers several features that facilitate efficient
updates and maintenance actions that are critically important where users
maintain a large recipient database, across multiple users, and multiple
recipient lists. Absent these features, list maintenance becomes overly
cumbersome, inefficient and leads to inaccuracies. The functionality within the
contacts management system is critically important to both distribution hubs at
Universal and the Play MPE® operations team to efficiently maintain accurate and
active recipient lists.

Within Play MPE®'s contacts management platform, the Company's operations team
offers for sale carefully curated and actively maintained recipient lists with
more than 14,000 music curators around the world. These lists include complete
lists in 12 countries, and lists under construction in an additional 38. These
selectable lists eliminate the need for our clients to maintain current
recipient contact information. These lists offer significant value to all
customers, but are necessary for smaller independent labels and artists who do
not have the resources to maintain current contacts. Without these curators
lists, many sales would not be possible. As active lists in new territories are
completed, Play MPE® will grow revenue.

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In addition to the contacts management functionality, the Play MPE® product and
engineering staff are developing new technical processes to facilitate list
development and maintenance. With these technical solutions, it is expected that
Play MPE® will expand saleable lists and thereby increase revenue.

Žaisti MPE® grotuvą

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Didžėjai turi nemokamą prieigą peržiūrėti ir atsisiųsti turinį naudodami lengvai naudojamą žiniatinklio grotuvą arba mobiliojo grotuvo programas (iOS ir Android). Interneto grotuvai šiuo metu yra prieinami 15 skirtingų kalbų; Anglų, ispanų, švedų, suomių, italų, olandų, portugalų, prancūzų, japonų, vokiečių, norvegų, latvių, lietuvių, estų, danų.

In developing Play MPE®'s recipient interfaces, the Company's product and
engineering teams focus on providing a very positive user experience. Recipients
enjoy many features that make it easy to access, collaborate, review, and search
for content. Play MPE®'s mobile apps offer off-line listening capabilities, the
ability to utilize Google Chromecast and Apple Airplay streaming capabilities,
creation of playlists, sorting, flagging and archiving features, and easier to
access release metadata. Recipient side satisfaction directly increases activity
which directly improves the effectiveness of promotional efforts of record label
customers.

Recipients on the Play MPE® platform have a wide variety of personas and include
programming directors for internet streaming, satellite or terrestrial radio,
retail store broadcasters, sports stadium DJs, clubs, events, music reviews in
newspapers or magazines, on-air personalities, music supervisors who program TV,
movies, commercials or video games, or "A&R" representatives at larger record
labels. Each recipient within the Play MPE® platform has a unique library of
music catered and appropriate for that recipient.

Clipstream®

The Company also developed Clipstream® for the online video industry for which
it is pursuing strategic alternatives. The Clipstream® Online Video Platform
(OVP) is a self-service system, for encoding, hosting and reporting on video
playback which can be embedded in third party websites or emails. Playback is
currently through the Company's proprietary JavaScript codec engine, which is
only available on the internet through the Company. The unique software-based
approach to rendering video, has patents claiming initial priority to 2011. This
product has incidental revenues and is not supported or marketed.

Trijų mėnesių laikotarpio, pasibaigusio, operacijų rezultatai 2021 m. lapkričio 30 d ir 2020 m

Revenue

Total revenue for the three-month period ending November 30, 2021 increased by
approximately 1% ($1,134,151 in 2021 - $1,123,977 in 2020). Play MPE® represents
virtually all the Company's revenue.  Play MPE®'s year to date revenue grew by
1% (or 1.7% after adjusting for favorable foreign exchange).  Play MPE®
continued to experience growth in the independent labels in the United States,
Europe, and Australia with an average revenue growth of 3% in this segment.

Veiklos sąnaudos

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Abstraktus

As our technologies and products are developed and maintained in-house, the
majority of our expenditures are on salaries and wages and associated expenses
such as office space, supplies and benefits. Our operations are primarily
conducted in Canada and therefore, our costs are primarily incurred in Canadian
dollars while our revenues are primarily denominated in Euros and 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.

Total operating costs during the three-month period ended November 30, 2021
increased by 8.6% to $852,029 (2020 - $784,426). Operating Costs in the
comparative period, include one-time, non-recuring costs associated with staff
restructuring. Adjusting for these one-time costs associated with staff
restructuring, overall costs increased by 11.8%. The increase in costs is
primarily the result of expanded business development staffing costs designed to
expand Play MPE®'s global market share. The Company also increased staffing
costs to more quickly expand the company's product offering. A portion of these
costs were capitalized. Also increasing overall costs are impacts a weakening
of the US Dollar. Foreign exchange impacts are generally temporarily in nature
and generally reverse over time.

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General and administrative   November 30     November 30
                                2021            2020
                             (3 months)      (3 months)      Change      Change
                                  $               $             $          %
Bad debt                           4,316               -       4,316       0.0%
Office and miscellaneous          50,478          40,241      10,237      25.4%
Professional fees                 18,295          46,825     (28,530 )   (60.9% )
Rent                               5,744           6,715        (971 )   (14.5% )
Telecommunications                   821             776          45       5.8%
Travel                             1,395           1,112         283      25.4%
Wages and benefits                69,575          63,880       5,695       8.9%
                                 150,624         159,549      (8,925 )    (5.6% )


Our general and administrative expenses consist of salaries and related
personnel costs including overhead, office rent, and general office supplies.
General and administrative costs also include professional fees and general
travel expenditures. The decrease in professional fees is due to a reduction of
corporate administration costs and a reduction of litigation costs.

Sales and marketing         November 30     November 30
                               2021            2020
                            (3 months)      (3 months)      Change      Change
                                 $               $             $          %
Advertising and marketing        33,011           9,020      23,991     266.0%
Rent                             33,062          31,536       1,526       4.8%
Telecommunications                5,322           4,053       1,269      31.3%
Wages and benefits              344,415         257,865      86,550      33.6%
                                415,810         302,474     113,336      37.5%


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. The increase in staffing costs primarily relates to the employment of
additional staff designed to grow Play MPE®'s market share. The increase in
advertising and marketing expenses is related to increased advertising,
sponsorship, and attendance at industry events in the first quarter.

Product Development   November 30     November 30
                         2021            2020
                      (3 months)      (3 months)      Change      Change
                           $               $             $          %
Rent                       22,591          25,079      (2,488 )    (9.9% )
Software services          18,177          17,576         601       3.4%
Telecommunications         16,318          16,805        (487 )    (2.9% )
Wages and benefits        201,338         238,628     (37,290 )   (15.6% )
                          258,424         298,088      39,664     (13.3% )


Product development costs consist primarily of salaries and related personnel
costs including overhead and consulting fees with respect to product development
and deployment. The increase in wages and benefits is related to an increase in
staffing in product development, offset by $72,290 capitalized as internal use
software in the quarter (November 30, 2020: $Nil).

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Skolos nusidėvėjimas ir amortizacija

Depreciation and amortization expense increased to $27,172 for the three-month
period ended November 30, 2021 from $24,315 for the period ended November 30,
2020, an increase of 11.7% due to a amortization of software development costs
associated with Play MPE® recipient player applications.

Uždarbis ir kitos išlaidos

Palūkanų pajamos buvo 1043 USD Už trijų mėnesių laikotarpį, kuris baigiasi 2021 m. lapkričio 30 d
(2020 m.: 1 464 USD) ir yra išvestas iš garantuotų investicijų sertifikatų vienerių metų laikotarpiui.

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grynosios pajamos

Per trijų mėnesių laikotarpį, kuris baigiasi 2021 m. lapkričio 30 d Mūsų grynosios pajamos buvo
165601 doleris (2020 m. 250 702 dolerius).

For the three-month period ended November 30, 2021, adjusted EBITDA was $217,635
(2020 - EBITDA $286,402).  Adjusted EBITDA is not defined under generally
accepted accounting principles ("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 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 us.
Adjusted EBITDA has limitations as a profitability measure in that it does not
include the interest expense on our debts, our provisions for income taxes, the
effect of our expenditures for 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 (loss) from operations to Adjusted
EBITDA over the eight most recently completed fiscal quarters:

                2022 Q1     2021 Q4     2021 Q3     2021 Q2     2021 Q1     

2020 m. IV ketv. 2020 m. 3 ketv. 2020 m. 2 ketv

                                           $           $           $           $           $           $
Net Income
(loss)          165,601      91,699      69,594     (29,466 )   250,702     158,187      54,899     (155,331 )
Amortization,
stock-based
compensation
and deferred
leasehold
inducements      53,077      40,589      39,806      39,533      37,164      49,085      48,470       37,307
Interest
income           (1,043 )      (869 )      (823 )      (875 )    (1,464 )    (4,672 )    (5,266 )     (8,110 )
Adjusted
EBITDA          217,635     131,419     108,577       9,192     286,402     202,600      98,103     (126,134 )


Likvidumas ir finansinės sąlygos

As at November 30, 2021, we held $2,536,426 (August 31, 2021 - $2,752,662) in
cash and cash equivalents and short-term investments.  Our short-term
investments consisted of one-year Guaranteed Investment Certificates (GICs) held
through a major Canadian financial institution, and had reached maturity prior
to November 30, 2021.

a 2021 m. lapkričio 30 d, turėjome apyvartinį kapitalą 2 682 199 USD palyginus su
2 561 480 USD kaip ir 2021 m. rugpjūčio 31 d. Per trijų mėnesių laikotarpį, kuris baigiasi 2021 m. lapkričio 30 dBendrovė iš viso baigė Nacionalinio komercinio tarptautinio banko pirkimus 44 166 USD.

Net cash used in operating activities for the three-month period ended November
30, 2021 was $52,626 (2020: net cash provided by operating activities of
$441,654).  The primary reason for the decrease in cash flows from operating
activities is related to changes in working capital which are expected to
reverse over time.

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Net cash used in investing activities for the three-month period ended November
30, 2021 was $80,287 (2020: cash provided from investing activities of
$758,561). During the three-month period ended November 30, 2021, $72,290 was
used in software under development.

Net cash used in financing activities during the three-month period ended
November 30, 2021 was $44,166 (2020: $nil), related to cash used to repurchase
and retire 30,300 shares of common stock (2020: Nil) of the Company under the
NCIB.

CRITICAL ACCOUNTING POLICIES

We prepare our interim condensed consolidated financial statements in accordance
with accounting principles generally accepted in the United States of America,
and make estimates and assumptions that affect our reported amounts of assets,
liabilities, revenue and expenses, and the related disclosures of contingent
liabilities. We base our estimates on historical experience and other
assumptions that we believe are reasonable in the circumstances. Actual results
may differ from these estimates.

There have been no significant changes in the critical accounting policies and
estimates described in our Annual Report on Form 10-K for the year ended August
31, 2021 as filed with the SEC on November 23, 2021 except for those described
in Note 8, "New Accounting Pronouncements" in the notes to our Interim Condensed
Consolidated Financial Statements included in this Form 10-Q.

Naujos apskaitos sąlygos

Žr. 8 pastabą „Naujos apskaitos ataskaitos“ mūsų sutrumpintų konsoliduotų tarpinių finansinių ataskaitų, įtrauktų į šią 10-Q formą, pastabose.

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