MUSIC LICENSING, INC. (OTC: SONG) REPORTS FISCAL YEAR 2024 FINANCIAL RESULTS AND FILES FORM 1-K WITH THE SEC

Rhea-AI Summary

Music Licensing Inc (OTC: SONG) has reported its fiscal year 2024 financial results, showing significant declines across key metrics. Revenue decreased to $128.9 million from $1.05 billion in 2023, while the company recorded a net loss of $54.4 million compared to a net income of $46.0 million in 2023.

The company's financial position weakened with total assets falling to $19.9 million from $62.3 million, while total liabilities increased to $23.7 million from $12.7 million. Shareholders' equity turned negative at $(3.8) million, down from $49.6 million in 2023.

The revenue decline is attributed to a strategic pivot focusing on acquiring and trading royalty-generating intellectual property stakes. The company has identified acquisition targets valued between $36-250 million in royalty-generating IP assets for 2025, including investments in Listerine Mouthwash Antiseptic royalties and music catalog publishing rights.

Positive

• Strategic pivot to more predictable royalty-generating IP assets
• Identified acquisition targets worth $36-250M for 2025
• Secured new revenue streams through Listerine royalties and music catalogs

Negative

• Revenue declined 87.7% to $128.9M from $1.05B
• Net loss of $54.4M vs net income of $46.0M in 2023
• Total assets decreased 68% to $19.9M
• Liabilities increased 86.6% to $23.7M
• Negative shareholders' equity of $(3.8M)

Naples, FL, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Music Licensing, Inc. (OTC: SONG), also known as Pro Music Rights, a diversified holding company and the fifth public performance rights organization (PRO) established in the United States, today announced its financial results for the fiscal year ended December 31, 2024. The Company has also filed its annual report on Form 1-K with the U.S. Securities and Exchange Commission (SEC), which includes the audited financial statements and a comparative analysis of its 2024 and 2023 financial performance.

Key Financial Highlights for Fiscal Year 2024:

• Revenue: $128.9 million, compared to $1.05 billion in 2023.
• Net Loss: $(54.4) million, compared to a net income of $46.0 million in 2023.
• Total Assets: $19.9 million as of December 31, 2024, compared to $62.3 million in 2023.
• Total Liabilities: $23.7 million as of December 31, 2024, compared to $12.7 million in 2023.
• Shareholders' Equity: $(3.8) million as of December 31, 2024, compared to $49.6 million in 2023.

The decline in revenue was primarily due to a shift in the Company’s strategic focus, which involved the reassessment and reduction of certain accounts receivable and changes in its business model to focus on acquiring and trading royalty-generating intellectual property (IP) stakes rather than relying on traditional public performance rights operations.

Strategic Initiatives and 2025 Outlook

As previously announced, Music Licensing, Inc. is undergoing a significant transformation, focusing on the acquisition and monetization of royalty-generating intellectual property. This pivot is expected to provide more predictable, recurring revenue streams and enhance shareholder value over the long term. The Company has identified acquisition targets valued between $36 million and $250 million in royalty-generating IP assets for 2025, a strategic move designed to mitigate revenue volatility and ensure sustainable profitability.

In line with this transformation, Music Licensing, Inc. has made key investments in revenue-generating assets, including:

• Acquiring a portion of the royalty interest in Listerine “Mouthwash” Antiseptic
• Securing publishing royalty interests in high-value music catalogs

Management Commentary

“Our 2024 results reflect a transitional year as we reposition Music Licensing, Inc. for long-term success,” said Jake P. Noch, CEO of Music Licensing, Inc. “While the financials show a reduction in reported revenue and earnings, these changes align with our strategic shift to focus on acquiring high-quality, royalty-generating intellectual property. We are confident that these moves will drive sustainable growth and enhance shareholder value in the coming years.”

Regulatory Filings

The Company’s full audited financial results, along with the comparative analysis between 2024 and 2023, are available in the Form 1-K filed with the SEC. Investors and stakeholders can access the filing on the SEC’s website or the Company’s official website.

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) established in the United States. It is recognized under the federal registry of the United States government. The company licenses music to some of the most prominent platforms and businesses, including TikTok, iHeartMedia, Triller, Napster, 7Digital, Vevo, and many others.

Pro Music Rights holds an estimated 7.4% market share in the United States, representing a catalog of more than 2.5 million works by notable artists such as A$AP Rocky, Wiz Khalifa, Pharrell, Young Jeezy, Juelz Santana, Lil Yachty, MoneyBagg Yo, Larry June, Trae Pound, Sauce Walka, Trae Tha Truth, Sosamann, Soulja Boy, Lex Luger, Trauma Tone, Lud Foe, SlowBucks, Gunplay, OG Maco, Rich The Kid, Fat Trel, Young Scooter, Nipsey Hussle, Famous Dex, Boosie Badazz, Shy Glizzy, 2 Chainz, Migos, Gucci Mane, Young Dolph, Trinidad James, Chingy, Lil Gnar, 3OhBlack, Curren$y, Fall Out Boy, Money Man, Dej Loaf, Lil Uzi Vert, and many others, including works generated by artificial intelligence (AI).

Additionally, Music Licensing, Inc. (OTC: SONG) holds royalty interests in Listerine “Mouthwash” Antiseptic and a vast portfolio of musical works by globally renowned artists, including 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 many 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

What caused SONG's revenue to drop from $1.05 billion to $128.9 million in 2024?

The revenue decline was due to SONG's strategic shift, involving reassessment of accounts receivable and focus on acquiring royalty-generating IP stakes instead of traditional public performance rights operations.

How much did SONG's shareholders' equity decrease in 2024?

Shareholders' equity decreased by $53.4 million, falling from $49.6 million in 2023 to negative $(3.8) million in 2024.

What are SONG's acquisition targets for 2025?

SONG has identified royalty-generating IP asset acquisition targets valued between $36 million and $250 million for 2025.

What recent investments has SONG made in royalty-generating assets?

SONG has acquired a portion of Listerine Mouthwash Antiseptic royalty interest and secured publishing royalty interests in music catalogs.

How much net loss did SONG report in 2024?

SONG reported a net loss of $54.4 million in 2024, compared to a net income of $46.0 million in 2023.