From GlobeNewswire: 2024-12-12 08:00:00

Music Licensing, Inc. (OTC: SONG) reported Q3 2024 revenues of $7.54 million, a decrease from the prior year due to underperformance by the Pro Music Rights subsidiary. The company posted an operating loss of $2.8 million and a net loss of $2.83 million for the quarter, with total assets at $19.32 million. Operational cash flow showed a net use of $58,183, emphasizing the need to bolster liquidity.

The challenges faced by the PMR subsidiary’s business model led to bad debt expenses of $7.24 million in Q3. Music Licensing, Inc. is shifting focus towards acquiring royalty-generating intellectual property assets to achieve sustainable profitability. The company aims to acquire assets valued between $36 million and $250 million in 2025 to mitigate revenue model volatility.

A court-approved hybrid convertible note arrangement with the Jake P. Noch Family Office, LLC, accounts for $20.36 million in convertible note liabilities. This innovative financing approach minimizes dilution risks and aligns repayment with market conditions. The company anticipates the liability under this arrangement to peak at $32 million by early Q1 2025, with block trade transactions expected to reduce the burden significantly.

Music Licensing, Inc. remains committed to operational transparency and strategic clarity, transitioning towards a royalty-focused IP acquisition model. The company’s management team is optimistic about navigating challenges and emerging stronger with a predictable and profitable business model. Shareholders can expect long-term value through this transition process.



Read more at GlobeNewswire:: SONG) Q3 2024 Financial Results