Music Licensing, Inc. (OTC: SONG) Q3 2024 Financial Results and Strategic Realignment Announced
Music Licensing, Inc. (OTC: SONG) reported challenging Q3 2024 financial results with revenues of $7.54M, showing a sequential increase from Q2 but a significant year-over-year decline. The company posted an operating loss of $2.8M and a net loss of $2.83M. Total assets decreased to $19.32M from $55.67M in Q3 2023, while liabilities increased to $20.87M, resulting in a shareholders' equity deficit of $1.55M.
The company announced a strategic shift away from public performance rights operations toward acquiring royalty-generating intellectual property stakes. Management has identified acquisition targets valued between $36M and $250M for 2025. The company also clarified its $20.36M convertible note arrangement with Jake P. Noch Family Office, , which carries no interest or default risk.
Music Licensing, Inc. (OTC: SONG) ha riportato risultati finanziari complessi per il Q3 2024 con ricavi di $7.54M, mostrando un incremento sequenziale rispetto al Q2 ma una significativa diminuzione rispetto all'anno precedente. L'azienda ha registrato una perdita operativa di $2.8M e una perdita netta di $2.83M. I beni totali sono diminuiti a $19.32M rispetto ai $55.67M del Q3 2023, mentre le passività sono aumentate a $20.87M, comportando un deficit del patrimonio netto di $1.55M.
L'azienda ha annunciato un cambiamento strategico, allontanandosi dalle operazioni relative ai diritti di esecuzione pubblica verso l'acquisizione di partecipazioni in proprietà intellettuale in grado di generare royalty. La direzione ha identificato obiettivi di acquisizione valutati tra $36M e $250M per il 2025. Inoltre, l'azienda ha chiarito il suo accordo di nota convertibile da $20.36M con il Jake P. Noch Family Office, che non comporta rischi di interesse o di default.
Music Licensing, Inc. (OTC: SONG) reportó resultados financieros desafiantes para el tercer trimestre de 2024 con ingresos de $7.54M, mostrando un aumento secuencial desde el segundo trimestre, pero una significativa disminución interanual. La empresa presentó una pérdida operativa de $2.8M y una pérdida neta de $2.83M. Los activos totales disminuyeron a $19.32M desde $55.67M en el tercer trimestre de 2023, mientras que las pasivos aumentaron a $20.87M, resultando en un déficit de patrimonio de $1.55M.
La empresa anunció un cambio estratégico alejándose de las operaciones de derechos de ejecución pública hacia la adquisición de participaciones de propiedad intelectual generadoras de regalías. La dirección ha identificado objetivos de adquisición valorados entre $36M y $250M para 2025. La empresa también aclaró su acuerdo de nota convertible de $20.36M con el Jake P. Noch Family Office, que no implica riesgo de interés o de incumplimiento.
Music Licensing, Inc. (OTC: SONG)는 2024년 3분기 재무 결과가 어려웠다고 보고했으며, 수익은 754만 달러로 2분기 대비 증가했으나 전년 대비 큰 감소를 나타냈습니다. 회사는 280만 달러의 운영 손실과 283만 달러의 순손실을 기록했습니다. 총 자산은 2023년 3분기 5567만 달러에서 1932만 달러로 감소했으며, 부채는 2087만 달러로 증가하여 주주 자본이 155만 달러 부족해졌습니다.
회사는 공개 공연권 운영에서 로열티를 생성하는 지적 재산권 인수로 전략적 전환을 발표했습니다. 경영진은 2025년을 위해 3600만 달러에서 2억 5천만 달러 사이의 인수 대상을 식별했습니다. 회사는 또한 이자나 채무불이행 위험이 없는 2036만 달러의 전환사채 계약을 Jake P. Noch Family Office와 체결했다고 밝혔습니다.
Music Licensing, Inc. (OTC: SONG) a annoncé des résultats financiers difficiles pour le troisième trimestre 2024 avec des revenus de 7,54 millions de dollars, montrant une augmentation séquentielle par rapport au deuxième trimestre mais une baisse significative par rapport à l'année précédente. L'entreprise a affiché une perte d'exploitation de 2,8 millions de dollars et une perte nette de 2,83 millions de dollars. Les actifs totaux ont diminué pour atteindre 19,32 millions de dollars, contre 55,67 millions de dollars au troisième trimestre 2023, tandis que les passifs ont augmenté à 20,87 millions de dollars, entraînant un déficit de capitaux propres de 1,55 million de dollars.
L'entreprise a annoncé un changement stratégique, s'éloignant des opérations liées aux droits de performance publique vers l'acquisition de participations en propriété intellectuelle génératrices de redevances. La direction a identifié des cibles d'acquisition d'une valeur comprise entre 36 millions de dollars et 250 millions de dollars pour 2025. L'entreprise a également clarifié son accord de billet convertible de 20,36 millions de dollars avec le Jake P. Noch Family Office, qui ne comporte aucun risque d'intérêt ni de défaut.
Music Licensing, Inc. (OTC: SONG) berichtete über herausfordernde Finanzzahlen für das 3. Quartal 2024 mit Einnahmen von 7,54 Millionen USD, was eine sequenzielle Steigerung im Vergleich zum 2. Quartal darstellt, jedoch einen erheblichen Rückgang im Vergleich zum Vorjahr zeigt. Das Unternehmen wies einen operativen Verlust von 2,8 Millionen USD und einen Nettoverlust von 2,83 Millionen USD aus. Die Gesamtsumme der Vermögenswerte sank von 55,67 Millionen USD im 3. Quartal 2023 auf 19,32 Millionen USD, während die Verbindlichkeiten auf 20,87 Millionen USD anstiegen, was zu einem Defizit im Eigenkapital von 1,55 Millionen USD führte.
Das Unternehmen kündigte eine strategische Wende an, weg von den Rechten öffentlicher Aufführungen hin zum Erwerb von lizenzgenerierenden geistigen Eigentumsanteilen. Die Geschäftsführung hat für 2025 Akquisitionsziele im Wert zwischen 36 Millionen USD und 250 Millionen USD identifiziert. Das Unternehmen präzisierte zudem seine Vereinbarung über eine wandelbare Anleihe in Höhe von 20,36 Millionen USD mit dem Jake P. Noch Family Office, die kein Zins- oder Ausfallrisiko birgt.
- Sequential revenue increase in Q3 2024 compared to Q2
- Strategic pivot to royalty-generating IP acquisitions with targets of $36M-$250M
- Interest-free convertible note arrangement with no default risk
- Significant revenue decline year-over-year
- Q3 operating loss of $2.8M and net loss of $2.83M
- Total assets decreased by 65% to $19.32M from $55.67M
- Shareholders' equity shifted to deficit of $1.55M
- Bad debt expenses of $7.24M in Q3
- Cash balance declined to $2,817
- Negative operational cash flow of $58,183
Naples, FL, Dec. 12, 2024 (GLOBE NEWSWIRE) -- Music Licensing, Inc. (OTC: SONG) today reported its financial results for the quarter ended September 30, 2024, and provided insights into its strategic evolution aimed at delivering sustainable shareholder value and operational resilience.
Financial Highlights
Revenue and Profitability:
Music Licensing, Inc. reported Q3 2024 revenues of
Balance Sheet Overview:
| • | Assets: Total assets stood at |
| • | Liabilities: Total liabilities increased to |
| • | Equity: Shareholders’ equity shifted to a deficit of |
Cash Flow:
Operational cash flow for Q3 2024 showed a net use of
Management Analysis and Strategic Insights
Performance Analysis:
The Q3 results underscore the challenges inherent in the PMR subsidiary's current business model. Despite representing an extensive catalog of intellectual property, collection campaigns have struggled to yield expected results due to customer non-compliance and broader market headwinds. Legal actions to enforce receivables recovery are ongoing, but outcomes remain uncertain in the near term.
Bad debt expenses of
Strategic Realignment:
Music Licensing, Inc. is initiating a transformative shift, moving away from reliance on public performance rights operations to focus on acquiring and trading royalty-generating intellectual property (IP) stakes. These assets provide consistent and recurring cash flows with attractive yields, aligning with the Company’s goal of achieving sustainable profitability.
The Company has identified acquisition targets valued between
Convertible Note Clarification:
The
The arrangement contrasts sharply with traditional convertible instruments prevalent in the OTC space, which often impose severe dilution risks and accrue interest. This innovative financing approach ensures that shareholder value remains a priority while funding critical strategic initiatives.
Outlook
Jake P. Noch, CEO and COB of Music Licensing, Inc., commented:
"Our Q3 performance, while challenging, reflects the reality of the current market landscape and the inherent risks of our prior business model. Recognizing these dynamics, we are decisively pivoting toward high-quality, revenue-generating assets that align with our vision for sustainable growth and consistent shareholder returns."
The Company anticipates the liability under the hybrid convertible note arrangement to peak at approximately
Commitment to Shareholders
Music Licensing, Inc. remains steadfast in its commitment to operational transparency and strategic clarity. The transition toward a royalty-focused IP acquisition model represents a pivotal step in unlocking long-term value for stakeholders. The management team is optimistic about the Company’s ability to navigate these challenges and emerge stronger, with a more predictable and profitable business model.
About Music Licensing, Inc. (OTC: SONG) (ProMusicRights.com)
Music Licensing, Inc. (OTC: SONG), also known as Pro Music Rights, is a diversified holding company and the fifth public performance rights organization (PRO) formed in the United States. Its licensees include notable companies such as TikTok, iHeart Media, Triller, Napster, 7Digital, Vevo, and many others. Pro Music Rights holds an estimated market share of
Additionally, Music Licensing, Inc. (OTC: SONG) owns royalty stakes in Listerine "Mouthwash" Antiseptic and musical works by artists such as The Weeknd, Justin Bieber, Kanye West, Elton John, Mike Posner, blackbear, Lil Nas X, Lil Yachty, DaBaby, Stunna 4 Vegas, Miley Cyrus, Lil Wayne, XXXTentacion, BlueFace, The Game, Jeremih, Ty Dolla $ign, Eric Bellinger, Ne-Yo, MoneyBagg Yo, Halsey, Desiigner, DaniLeigh, Rihanna, and numerous others.
Forward-Looking Statements:
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that, all forward-looking statements involve risks and uncertainties, including without limitation, the ability of Music Licensing, Inc. & Pro Music Rights, Inc. to accomplish its stated plan of business. Music Licensing, Inc. & Pro Music Rights, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Pro Music Rights, Inc., Music Licensing, Inc., or any other person.
Non-Legal Advice Disclosure:
This press release does not constitute legal advice, and readers are advised to seek legal counsel for any legal matters or questions related to the content herein.
Non-Investment Advice Disclosure:
This communication is intended solely for informational purposes and does not in any way imply or constitute a recommendation or solicitation for the purchase or sale of any securities, commodities, bonds, options, derivatives, or any other investment products. Any decisions related to investments should be made after thorough research and consultation with a qualified financial advisor or professional. We assume no liability for any actions taken or not taken based on the information provided in this communication
Contact: investors@ProMusicRights.com
SOURCE: Music Licensing, Inc.
FAQ
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