MILLS MUSIC TRUST Files 10-Q for Period Ended March 31, 2024

TL;DR

<b>MILLS MUSIC TRUST filed its Q1 2024 10-Q report, detailing administrative expenses and historical financial periods.</b>

AI Summary

MILLS MUSIC TRUST (MMTRS) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Filing is a Form 10-Q for the quarterly period ended March 31, 2024. Includes amounts reserved for administrative expenses totaling $4,375 for Q4 2022, paid in Q1 2023. Corporate Trustee Fees of $625 and Transfer Agent Registrar Fees of $3,750 for Q4 2022 were paid in Q1 2023. The filing covers various historical periods, including Q1 2024, Q1 2023, and extends back to 2010. The company is registered under the 1934 Act with SEC file number 000-02123.

Why It Matters

For investors and stakeholders tracking MILLS MUSIC TRUST, this filing contains several important signals. This 10-Q filing provides a snapshot of the company's financial status and operational details for the first quarter of 2024, which is crucial for investors to assess recent performance. The disclosure of specific fee payments from Q4 2022 made in Q1 2023 offers insight into the timing of expense recognition and cash outflows.

Risk Assessment

Risk Level: low — MILLS MUSIC TRUST shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine financial disclosure.

Analyst Insight

Review the detailed financial statements and disclosures within the 10-Q to understand the company's current financial health and any specific operational impacts from the reported periods.

Key Numbers

• 4375 — Administrative Expenses (Attributable to Corporate Trustee fees and Corporate Agent Registrar fees for Q4 2022, paid in Q1 2023.)
• 625 — Corporate Trustee Fees (Attributable to Q4 2022, paid in Q1 2023.)
• 3750 — Transfer Agent Registrar Fees (Attributable to Q4 2022, paid in Q1 2023.)
• 2024-03-31 — Quarterly Period End Date (For the quarterly report.)
• 2024-05-15 — Filing Date (Date the report was filed.)

Key Players & Entities

• MILLS MUSIC TRUST (company) — Filer name
• HSBC Bank (company) — Mail address reference
• New York (company) — State of incorporation and business address
• 000-02123 (company) — Commission file number
• 13-6183792 (company) — I.R.S. Employer Identification No.
• 2128685781 (dollar_amount) — Business phone number

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End date for the reported financial period.
• 2024-05-15: Filing Date — Date the 10-Q report was submitted to the SEC.

Glossary

Form 10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure of financial information. (This filing is the primary document for investors to review the company's performance during the specified quarter.)

Corporate Trustee Fees

Fees paid to a trustee for managing and administering a trust. (These fees represent an operational expense for the trust.)

Transfer Agent Registrar Fees

Fees paid to an agent for maintaining records of shareholders and processing stock transfers. (These fees are associated with the administration of the trust's securities.)

Key Financial Figures

• $167,500 — guaranteed to be at least a minimum of $167,500 per quarter (the " Minimum Payment Obli
• $155,540 — istribution for the aggregate amount of $155,540 ($0.5601 per Trust Unit) to the Trust's
• $0.5601 — n for the aggregate amount of $155,540 ($0.5601 per Trust Unit) to the Trust's Unit Hol
• $46 — f March 31, 2024, the Trust was holding $46 in cash and had $0 in unpaid administra
• $0 — e Trust was holding $46 in cash and had $0 in unpaid administrative expenses for s

Filing Documents

• d766294d10q.htm (10-Q) — 198KB
• d766294dex311.htm (EX-31.1) — 10KB
• d766294dex312.htm (EX-31.2) — 10KB
• d766294dex321.htm (EX-32.1) — 5KB
• d766294dex322.htm (EX-32.2) — 5KB
• 0001193125-24-139079.txt (&nbsp;) — 1214KB
• mmtrs-20230331.xsd (EX-101.SCH) — 18KB
• mmtrs-20230331_cal.xml (EX-101.CAL) — 6KB
• mmtrs-20230331_def.xml (EX-101.DEF) — 32KB
• mmtrs-20230331_lab.xml (EX-101.LAB) — 75KB
• mmtrs-20230331_pre.xml (EX-101.PRE) — 60KB
• d766294d10q_htm.xml (XML) — 208KB

— FINANCIAL STATEMENTS

PART I — FINANCIAL STATEMENTS 1

Financial Statements

Item 1. Financial Statements 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 8

Controls and Procedures

Item 4. Controls and Procedures 8

— OTHER INFORMATION

PART II — OTHER INFORMATION 9

Legal Proceedings

Item 1. Legal Proceedings 9

Risk Factors

Item 1A. Risk Factors 9

Unregistered Sale of Equity Securities and Use of Proceeds

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds 9

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 9

Mine Safety Disclosure

Item 4. Mine Safety Disclosure 9

Other Information

Item 5. Other Information 9

Exhibits

Item 6. Exhibits 10

— FINANCIAL STATEMENTS

PART I — FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MILLS MUSIC TRUST THREE MONTHS ENDED MARCH 31, 2024 AND MARCH 31, 2023 (UNAUDITED) Three Months Ended March 31 2024 2023 Receipts from EMI $ 288,427 $ 272,831 Undistributed Cash at Beginning of Period 46 4,421 (1) Disbursement—Administrative Expenses ( 132,887 ) ( 92,356 ) (1) Balance Available for Distribution 155,586 184,896 Cash Distributions to Unit Holders 155,540 184,850 Undistributed Cash at End of Period $ 46 $ 46 Cash Distribution per Trust Unit (based on 277,712 Trust Units outstanding) $ 0.5601 $ 0.6656 The accompanying notes are an integral part of the unaudited financial statements. The Trust does not prepare a balance sheet or a statement of cash flows. (1) Includes amounts reserved for administrative expenses in the aggregate amount of $ 4,375 attributable to Corporate Trustee fees and Corporate Agent Registrar fees for the fourth quarter of 2022 which were actually paid in the first quarter of 2023. 1 MILLS MUSIC TRUST NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS THREE MONTHS ENDED MARCH 31, 2024 AND MARCH 31, 2023 (UNAUDITED) NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Background Mills Music Trust (the " Trust" ) was created by a Declaration of Trust, dated December 3, 1964 (the " Declaration of Trust" ), for the purpose of acquiring from Mills Music, Inc. (" Old Mills" ), the right to receive payment of a deferred contingent purchase price obligation (the " Contingent Portion" ) payable to Old Mills. The obligation to pay the Contingent Portion arose as the result of the sale by Old Mills of its music and lyric copyright catalogue (the " Catalogue" ) to a newly formed company pursuant to an asset purchase agreement dated December 5, 1964 (the " Asset Purchase Agreement" ). Pursuant to the Asset Purchase Agreement, payment of the Contingent Po

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Copyright Catalogue The Catalogue is estimated to be composed of over 12,000 music titles (the " Copyrighted Songs" ), of which approximately 1,430 produced royalty income in recent years. Based on the Listing, the Trust derives its receipts principally from copyrights established prior to 1960 in the Unites States. The receipts fluctuate based on consumer interest in the nostalgia appeal of older songs and the overall popularity of the songs contained in the Catalogue. The Catalogue also generates royalty income in foreign countries in which copyright is claimed. A number of factors create uncertainties with respect to the Catalogue's ability to continue to generate royalty income on a continuing, long-term basis for the Trust. These factors include: (i) the effect that foreign and domestic copyright laws and any changes thereto have or will have on renewal rights (e.g., vesting of renewal term rights), (ii) the length of the term of copyright protection under foreign and domestic copyright laws, (iii) reversionary rights that may effect whether EMI is able to retain its rights to the Copyrighted Songs during certain renewal terms (e.g., statutory termination of transfers or "copyright recapture") and (iv) ongoing disputes regarding the payment and calculation of the Contingent Portion. The Trust does not own the Catalogue or any copyrights or other intellectual property rights and is not responsible for collecting royalties in connection with the Catalogue. As the current owner and administrator of the Catalogue, EMI is obligated under the Asset Purchase Agreement to use its best efforts to collect all royalties, domestic and foreign, in connection with the Catalogue and to remit a portion of its royalty income to the Trust in accordance with its Contingent Portion payment obligation. The Trust's income is dependent, in part, on EMI's ability to maintain its

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable.

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES

Controls and Procedures

Controls and Procedures As of the end of the period covered by this quarterly report, the Trust carried out an evaluation of the effectiveness of the design and operation of the Trust's "disclosure controls and procedures" (as defined in Rules 13a-15 of the Securities Exchange Act of 1934, as amended (the " Exchange Act" )) under the supervision and with the participation of the Trust's management, including the Chief Financial Individual providing accounting services and the trust officers of the Corporate Trustee. Based on that evaluation, the Chief Financial Individual providing accounting services and the trust officer of the Corporate Trustee concluded that the Trust's disclosure controls and procedures are effective. Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the Trust's reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the Trust's reports filed under the Exchange Act is accumulated and communicated to Trust's management, including the Chief Financial Individual providing accounting services and the trust officer of the Corporate Trustee, to allow timely decisions regarding required disclosure. Changes in Internal Control over Financial Reporting There were no changes in the Trust's internal control over financial reporting that occurred during the fiscal period covered by this quarterly report that materially affected, or are reasonably likely to materially affect, the Trust's internal control over financial reporting. 8

— OTHER INFORMATION

PART II — OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS None.

RISK FACTORS

ITEM 1A. RISK FACTORS The Trust is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information under this item.

UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS None.

DEFAULT UPON SENIOR SECURITIES

ITEM 3. DEFAULT UPON SENIOR SECURITIES None.

MINE SAFETY DISCLOSURE

ITEM 4. MINE SAFETY DISCLOSURE Not applicable.

OTHER INFORMATION

ITEM 5. OTHER INFORMATION None. 9

EXHIBITS

ITEM 6. EXHIBITS Exhibit Exhibit No. Description 31.1 Certification by the Chief Financial Individual providing accounting services pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2 Certification by the trust officer of the Corporate Trustee pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1* Certification by the Chief Financial Individual providing accounting services pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2* Certification by the trust officer for the Corporate Trustee Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS XBRL Instance Document 101.SCH XBRL Schema Document 101.CAL XBRL Calculation Linkbase Documents 101.DEF XBRL Taxonomy Extension Definition Linkbase Document 1

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