Mills Music Trust 10-Q: Q2 2024 Expenses Detailed

TL;DR

Mills Music Trust 10-Q shows Q2 2024 expenses, including $29k admin costs paid July '23.

AI Summary

Mills Music Trust filed a 10-Q for the period ending June 30, 2024. The filing details administrative expenses paid in July 2023, including $29,334 for the three months ended June 30, 2023, and $625 for Corporate Trustee Fees and $3,750 for Transfer Agent Registrar Fees for the same period. These expenses were paid by the Trust in July 2023.

Why It Matters

This filing provides transparency into the operational costs and payment schedules of Mills Music Trust, offering insight into its financial management for the second quarter of 2024.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediate indicators of significant financial distress or unusual activity.

Key Numbers

• $29,334 — Administrative Expenses (Attributable to Q2 2023, paid in July 2023.)
• $625 — Corporate Trustee Fees (Attributable to Q2 2023, paid in July 2023.)
• $3,750 — Transfer Agent Registrar Fees (Attributable to Q2 2023, paid in July 2023.)

Key Players & Entities

• MILLS MUSIC TRUST (company) — Filer
• $29,334 (dollar_amount) — Administrative expenses for Q2 2023 paid in July 2023
• $625 (dollar_amount) — Corporate Trustee Fees for Q2 2023 paid in July 2023
• $3,750 (dollar_amount) — Transfer Agent Registrar Fees for Q2 2023 paid in July 2023
• June 30, 2023 (date) — Period for which expenses were reserved and paid
• July 2023 (date) — Month expenses were paid
• June 30, 2024 (date) — Reporting period end date

FAQ

Key Financial Figures

• $167,500 — guaranteed to be at least a minimum of $167,500 per quarter (the " Minimum Payment Obli
• $248,922 — On June 11, 2024, the Trust received $248,922 ($0.8693 per Trust Unit) from EMI for r
• $0.8693 — 11, 2024, the Trust received $248,922 ($0.8693 per Trust Unit) from EMI for royalty in
• $216,119 — second quarter of 2024, as compared to $216,119 ($0.7782 per Trust Unit) for the paymen
• $0.7782 — arter of 2024, as compared to $216,119 ($0.7782 per Trust Unit) for the payment attribu
• $132,466 — 2024, the Trust made a distribution of $132,466 ($0.4770 per Trust Unit) to the Trust's
• $0.4770 — Trust made a distribution of $132,466 ($0.4770 per Trust Unit) to the Trust's Unit Hol
• $46 — of July 18, 2024, the Trust was holding $46 in cash and had $35,247 in unpaid admin
• $35,247 — e Trust was holding $46 in cash and had $35,247 in unpaid administrative expenses for s

Filing Documents

• d646936d10q.htm (10-Q) — 202KB
• d646936dex311.htm (EX-31.1) — 10KB
• d646936dex312.htm (EX-31.2) — 9KB
• d646936dex321.htm (EX-32.1) — 5KB
• d646936dex322.htm (EX-32.2) — 5KB
• 0001193125-24-200322.txt ( ) — 1178KB
• mmtrs-20240630.xsd (EX-101.SCH) — 18KB
• mmtrs-20240630_cal.xml (EX-101.CAL) — 6KB
• mmtrs-20240630_def.xml (EX-101.DEF) — 32KB
• mmtrs-20240630_lab.xml (EX-101.LAB) — 76KB
• mmtrs-20240630_pre.xml (EX-101.PRE) — 60KB
• d646936d10q_htm.xml (XML) — 188KB

— 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 6

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

DEFAULT UPON SENIOR SECURITIES

ITEM 3. DEFAULT UPON SENIOR SECURITIES 9

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 9

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 9

EXHIBITS

ITEM 6. EXHIBITS 9

— FINANCIAL STATEMENTS

PART I — FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MILLS MUSIC TRUST THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND JUNE 30, 2023 (UNAUDITED) Three Months Ended June 30 Six Months Ended June 30 2024 2023 2024 2023 Receipts from EMI $ 248,922 $ 216,119 $ 537,349 $ 488,950 Undistributed Cash at Beginning of Period 46 46 46 46 Disbursements—Administrative Expenses ( 116,456 ) ( 81,486 ) (1) ( 249,343 ) ( 169,467 ) (1) Balance Available for Distribution 132,512 134,679 288,052 319,529 Cash Distributions to Unit Holders ( 132,466 ) ( 105,297 ) ( 288,006 ) ( 290,147 ) Undistributed Cash at End of Period $ 46 $ 29,382 (2) $ 46 $ 29,382 (2) Cash Distributions Per Unit (based on 277,712 Trust Units Outstanding) $ 0.48 $ 0.38 $ 1.04 $ 1.05 (1) Administrative expenses in the aggregate amount of $ 29,334 attributable to the three-months ended June 30, 2023 were actually paid by the Trust in July 2023. (2) Includes amounts reserved for administrative expenses in the aggr egate amount of $ 29,334 attributable to the three-months ended June 30, 2023 which were actually paid by the Trust in July 2023. 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 Table of Contents MILLS MUSIC TRUST NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND JUNE 30, 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 rights to receive payment of a deferred contingent purchase price obligation (the " Contin g ent Portion ") payable to Old Mills. The ob

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, of which approximately 1,430 produced royalty income in recent years. Based on the Listing, the majority of the Trust's receipts are derived 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 Canada and other 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 affect 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 maint

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(e) and 15d-15(e) 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. 8 Changes in Internal Control over Financial Reporting There were no changes in the Trust's internal control over financial reporting (as such term is defined in Ru

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