8-K
DESTINY MEDIA TECHNOLOGIES INC (DSNY)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
July 15, 2020 Date of Report (Date of earliest event reported)
DESTINY MEDIA TECHNOLOGIES INC. (Exact name of registrant as specified in its charter)
| NEVADA | 000-28259 | 84-1516745 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 1110 - 885 West Georgia<br><br> <br>Vancouver, British Columbia, Canada | V6C 3E8 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
(604) 609-7736
Registrant's telephone number, including area code)
N/A (Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On July 15, 2020, Destiny Media Technologies Inc. (the "Company") issued a press release reporting third quarter fiscal 2020 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release dated July 15, 2020 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DESTINY MEDIA TECHNOLOGIES INC. | ||
|---|---|---|
| Date: July 15, 2020 | ||
| By: | /s/ FRED VANDENBERG | |
| FRED VANDENBERG | ||
| Chief Executive Officer, President and Secretary |
3
Destiny Media Technologies, Inc.: Exhibit 99.1 - Filed by newsfilecorp.com
Destiny Media Technologies Inc.
Announces Third Quarter Fiscal Year 2020 Results
Vancouver, BC - July 15, 2020 - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based music distribution, collaboration and content discovery platform, today announced financial results for its fiscal 2020 third quarter ended May 31, 2020.
Highlights
Highlights for the quarter:
- Glenn Mattern joins Play MPE® as Director of Business Development
- Canadian Play MPE® trials expand to include Sony Music Canada and several Canadian major independent record labels
- Play MPE® launches Mexican distribution lists
- USA Latin Music and Mexican seeding distribution commences
- Launch of the Play MPE® thought leadership panel series
- Play MPE® product management launches its beta testing program
Fiscal 2020 Third Quarter Financial Results
In the quarter ending May 31, 2020, Play MPE® revenue declined by approximately 2.4%. Adjustments in pricing to a long-standing customer agreement and negative impacts of foreign exchange resulted in a small decline to revenue. This was offset by continued growth in usage by independent music labels. Adjustments to pricing in this agreement is designed to facilitate longer term growing usage of the Play MPE® platform in under used market segments.
"We saw very encouraging results from our Canadian and Latin Music initiatives in our third quarter as usage expanded to include Sony Music Canada and several major independent record labels. We also launched our Latin lists in the United States and Mexico and commenced seeding those networks with popular content," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "Play MPE® continues to raise its profile as a thought leader with the launch of our new panel and webinar series."
The Company commenced a stock repurchase program in September 2019, resulting in market purchases of 550,140 shares (representing 5% of shares outstanding as of August 31, 2019) for a total cost of $533,223 USD.
Fiscal 2020 Third Quarter Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 15, 2020, to further discuss its fiscal 2020 third quarter results. Investors and interested parties may participate in the call by dialing 1-416-764-8688 or 1-888-390-0546 and referring to conference ID # 44093102. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at https://investors.dsny.com.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Expressed in United States dollars)
Unaudited
| Three Months | Three Months | Nine Months | Nine Months | |
|---|---|---|---|---|
| Ended | Ended | Ended | Ended | |
| May 31, | May 31, | May 31, | May 31, | |
| 2020 | 2019 | 2020 | 2019 | |
| Service revenue | 939,873 | 970,435 | 2,792,458 | 2,833,818 |
| Cost of revenue | ||||
| Hosting costs | 30,905 | 24,348 | 73,361 | 83,556 |
| Internal engineering support | 5,915 | 7,010 | 19,278 | 21,297 |
| Customer support | 33,523 | 30,179 | 109,245 | 86,456 |
| Third Party and transactions costs | 16,641 | 11,009 | 39,502 | 31,019 |
| 86,984 | 72,546 | 241,386 | 222,328 | |
| Gross Margin | 852,889 | 897,889 | 2,551,072 | 2,611,490 |
| Operating expenses | ||||
| General and administrative | 273,070 | 178,392 | 708,667 | 556,270 |
| Sales and marketing | 140,690 | 273,574 | 786,846 | 707,473 |
| Product development | 355,625 | 233,225 | 963,351 | 806,761 |
| Depreciation and amortization | 33,194 | 26,764 | 100,744 | 67,099 |
| 802,579 | 711,955 | 2,559,608 | 2,137,603 | |
| Income (loss) from operations | 50,310 | 185,934 | (8,536 | 473,887 |
| Other income | ||||
| Interest income | 5,266 | 8,233 | 19,743 | 21,154 |
| Other income | (677 | 1,545 | 19 | 1,580 |
| Net income (loss) | 54,899 | 195,712 | 11,226 | 496,621 |
| Other comprehensive income (loss) | ||||
| Foreign currency translation adjustments | (66,657 | (80,709 | (80,213 | (100,562 |
| Total comprehensive income (loss) | (11,758 | 115,003 | (68,987 | 396,059 |
| Net income (loss) per common share, | ||||
| basic and diluted | 0.01 | 0.02 | 0.00 | 0.05 |
| Weighted average common shares outstanding: | ||||
| Basic and diluted | 10,450,646 | 11,002,775 | 10,623,432 | 11,002,775 |
All values are in US Dollars.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(Expressed in United States Dollars)
Unaudited
| As at, | |
|---|---|
| August 31, | |
| 2019 | |
| ASSETS | |
| Current | |
| Cash and cash equivalents | 2,512,138 |
| Short-term investments | 380,056 |
| Accounts receivable, net of allowance for doubtful accounts of 23,111, [August 31, 2019 – 10,106] | 332,271 |
| Other receivables | 14,240 |
| Prepaid expenses | 77,067 |
| Total current assets | 3,315,772 |
| Deposits | 33,716 |
| Property and equipment, net | 260,907 |
| Intangible assets, net | 24,695 |
| Right of use asset | — |
| Total assets | 3,635,090 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| Current | |
| Accounts payable | 132,451 |
| Accrued liabilities | 303,470 |
| Deferred leasehold inducement | 46,774 |
| Deferred revenue | 23,388 |
| Current portion of operating lease liability | — |
| Total current liabilities | 506,083 |
| Operating lease liability, net of current portion | — |
| Total liabilities | 506,083 |
| Commitments and contingencies | |
| Stockholders’ equity | |
| Common stock, par value 0.001 | |
| Authorized: 20,000,000 shares Issued and outstanding: 10,450,656 shares [August 31, 2019 – issued and outstanding 11,000,796 shares] | 11,001 |
| Additional paid-in capital | 9,850,348 |
| Accumulated deficit | (6,340,483 |
| Accumulated other comprehensive loss | (391,859 |
| Total stockholders’ equity | 3,129,007 |
| Total liabilities and stockholders’ equity | 3,635,090 |
All values are in US Dollars.
About Destiny Media Technologies Inc.
Destiny Media Technologies ("Destiny") provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE® (www.plaympe.com), provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond. More information can be found at www.dsny.com.
Forward-Looking Statements
This release contains forward-looking statements that reflect current views with respect to future events and operating performance. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Destiny Media Technologies is not obligated to update these statements in the future. For more information on the Company's risks and uncertainties relating to those forward-looking statements, please refer to the Risk Factors section in our Annual Form 10-K for the fiscal year ended August 31, 2019, which is available on www.sedar.com or www.sec.gov.
Contact:
Fred Vandenberg CEO, Destiny Media Technologies, Inc. 604 609 7736 x236