SONG) Q3 2024 Financial Results and Strategic Realignment Announced

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 $7.54 million, a modest sequential increase compared to Q2 2024. However, this reflects a significant decline from prior-year levels, primarily due to the underperformance of the Pro Music Rights (PMR) subsidiary’s collection campaigns. The Company posted an operating loss of $2.8 million and a net loss of $2.83 million for the quarter.

Balance Sheet Overview:

•	Assets: Total assets stood at $19.32 million, down from $55.67 million as of Q3 2023. The reduction was driven by a significant adjustment to accounts receivable, reflecting a conservative accounting stance on doubtful accounts.
•	Liabilities: Total liabilities increased to $20.87 million, primarily due to a rise in non-current liabilities, notably the convertible notes payable.
•	Equity: Shareholders’ equity shifted to a deficit of $1.55 million, reflecting cumulative operating losses and bad debt write-offs.

Cash Flow:

Operational cash flow for Q3 2024 showed a net use of $58,183, with the cash balance declining to $2,817 by the end of the period. This highlights the Company's immediate need to bolster liquidity through strategic measures.

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 $7.24 million during the quarter reflect the Company’s commitment to financial transparency and prudent accounting. The adjustment ensures that receivables accurately represent realizable value, a step deemed critical for informed decision-making and investor confidence.

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.