DSNY 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
January 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 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 January 15, 2020, Destiny Media Technologies Inc. (the "Company") issued a press release reporting first 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 January 15, 2020 |
2
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: January 15, 2020 | ||
| By: | /s/ FRED VANDENBERG | |
| FRED VANDENBERG | ||
| Chief Executive Officer, President and Secretary | ||
3
Destiny Media Technologies Inc.
Announces First Quarter Fiscal Year 2020 Results
Vancouver, BC – January 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 first quarter ended November 30, 2019.
Highlights
Highlights for the quarter include:
• Play MPE® currency adjusted revenue increased by 8.5%;
• Increase in global independent label revenue of 10.9% on a currency adjusted basis;
• Increased spending on product and business development to drive new market acquisition.
Fiscal 2020 First Quarter Results
Play MPE® currency adjusted revenue for the quarter ended November 30, 2019 grew by 8.5% over the first quarter of fiscal 2019. Increases in revenue were driven by expanded use by independent labels in Canada and the United States. Foreign currency fluctuations reduced the overall positive impact to our Play MPE ® revenues resulting in a net 6.3% increase in reported Play MPE ® revenue. Overall expenditure growth of 22% is the result of increased investments in product development and business development to increase the cadence of product enhancement and to establish new markets for Play MPE®.
“During the quarter we continued to increase our investment in product development and business development resources by reinvesting our sustained revenue growth,” said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. “These new investments are expected to increase product enhancements and new market acquisition in the short term.”
The company commenced a stock repurchase program in September 2019, resulting in market purchases to January 8, 2020 of 512,555 shares (representing 4.7% of shares outstanding as of August 31, 2019) for a total cost of $490,500 USD.
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on January 15, 2020, to further discuss its fiscal 2020 first 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 # 15660597. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at https://investors.dsny.com.
Destiny Media Technologies Inc.
CONDENSED CONSOLIDATED INTERIM
STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(Expressed in United States dollars)
| Three months ended November 30, | ||||||
| 2019 | 2018 | |||||
| $ | $ | |||||
| Revenue | 1,045,856 | 984,019 | ||||
| Cost of revenue | ||||||
| Hosting costs | 26,617 | 29,957 | ||||
| Internal engineering support | 6,847 | 7,371 | ||||
| Customer support | 39,371 | 28,247 | ||||
| Third party and transaction costs | 12,447 | 10,595 | ||||
| 85,282 | 76,170 | |||||
| Gross Margin | 960,574 | 907,849 | ||||
| Operating expenses | ||||||
| General and administrative | 219,503 | 171,675 | ||||
| Sales and marketing | 283,756 | 211,153 | ||||
| Research and development | 319,974 | 290,641 | ||||
| Depreciation and amortization | 32,072 | 20,624 | ||||
| 855,305 | 694,093 | |||||
| Income from operations | 105,269 | 213,756 | ||||
| Other income | ||||||
| Interest income | 6,389 | 6,434 | ||||
| Net income | 111,658 | 220,190 | ||||
| Other comprehensive income (loss) | ||||||
| Foreign currency translation adjustments | 1,552 | (49,085 | ) | |||
| Total comprehensive income | 113,210 | 171,105 | ||||
| Net income per common share, basic and diluted | 0.01 | 0.02 | ||||
| Weighted average common shares outstanding: | ||||||
| Basic and diluted | 10,954,603 | 11,002,786 |
Destiny Media Technologies Inc.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(Expressed in United States dollars)
| As at, | November 30, | August 31, | ||||
| 2019 | 2019 | |||||
| $ | $ | |||||
| ASSETS | ||||||
| Current | ||||||
| Cash and cash equivalents | 1,545,080 | 2,512,138 | ||||
| Short-term investments | 1,138,375 | 380,056 | ||||
| Accounts receivable, net of allowance for | ||||||
| doubtful accounts of $10,113 [August 31, 2019 – $10,106] | 416,870 | 332,271 | ||||
| Other receivables | 11,411 | 14,240 | ||||
| Prepaid expenses | 69,882 | 77,067 | ||||
| Total current assets | 3,181,618 | 3,315,772 | ||||
| Deposits | 33,739 | 33,716 | ||||
| Property and equipment, net | 270,424 | 260,907 | ||||
| Intangible assets, net | 20,579 | 24,695 | ||||
| Right of use asset | 559,635 | - | ||||
| Total assets | 4,065,995 | 3,635,090 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current | ||||||
| Accounts payable | 203,335 | 132,451 | ||||
| Accrued liabilities | 269,373 | 303,470 | ||||
| Deferred leasehold inducement | - | 46,774 | ||||
| Deferred revenue | 15,274 | 23,388 | ||||
| Current portion of operating lease liability | 216,645 | - | ||||
| Total current liabilities | 704,627 | 506,083 | ||||
| Operating lease liability, net of current portion | 393,104 | - | ||||
| Total liabilities | 1,097,731 | 506,083 | ||||
| Stockholders’ equity | ||||||
| Common stock, par value $0.001 Authorized: 20,000,000 shares Issued and outstanding: 10,702,041 shares [August 31, 2019 – issued and outstanding 11,000,786 shares] |
10,702 | 11,001 | ||||
| Additional paid-in capital | 9,576,694 | 9,850,348 | ||||
| Accumulated deficit | (6,228,825 | ) | (6,340,483 | ) | ||
| Accumulated other comprehensive (loss) | (390,307 | ) | (391,859 | ) | ||
| Total stockholders’ equity | 2,968,264 | 3,129,007 | ||||
| Total liabilities and stockholders’ equity | 4,065,995 | 3,635,090 |
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