Mills Music Trust 10-Q: Expense Payments Detailed

TL;DR

**Mills Music Trust 10-Q:** Trust paid $29k in admin expenses from Q2 2023 in July, plus $4k in Q4 2022 trustee fees in Q1 2023.

AI Summary

Mills Music Trust filed its 10-Q for the period ending September 30, 2024. The filing details administrative expenses paid in July 2023, totaling $29,334, which were reserved for the three months ended June 30, 2023. Additionally, expenses of $4,375 for the fourth quarter of 2022 were paid in the first quarter of 2023, covering Corporate Trustee, Transfer Agent, and Registrar fees.

Why It Matters

This filing provides transparency into the timing of expense payments for administrative and trustee services, offering insight into the trust's operational cash flow management.

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 Paid (Paid in July 2023, reserved for Q2 2023.)
• $4,375 — Q4 2022 Expenses Paid (Paid in Q1 2023, includes trustee and registrar fees.)

Key Players & Entities

• MILLS MUSIC TRUST (company) — Filer of the 10-Q
• $29,334 (dollar_amount) — Administrative expenses paid in July 2023 for Q2 2023
• $4,375 (dollar_amount) — Administrative expenses paid in Q1 2023 for Q4 2022
• $4,375 (dollar_amount) — Trustee, Transfer Agent, and Registrar fees paid in Q1 2023 for Q4 2022
• $4,375 (dollar_amount) — Trustee, Transfer Agent, and Registrar fees paid in July 2023 for Q2 2023

FAQ

Key Financial Figures

• $167,500 — guaranteed to be at least a minimum of $167,500 per quarter (the " Minimum Payment Obli
• $512,648 — eceived a Contingent Portion payment of $512,648 (or $ $1.8460 per Trust Unit) from EMI,
• $1.8460 — ngent Portion payment of $512,648 (or $ $1.8460 per Trust Unit) from EMI, which was att
• $467,307 — econd quarter of 2024, as compared to $ $467,307 (or $ 1.6827 per Trust Unit) for the pa
• $370,727 — 2024, the Trust made a distribution of $370,727 (or $1.3350 per Trust Unit) to the Trus
• $1.3350 — ust made a distribution of $370,727 (or $1.3350 per Trust Unit) to the Trust's Unit Hol
• $46 — October 16, 2024, the Trust was holding $46 in cash and had received invoices for a
• $3,482 — d received invoices for an aggregate of $3,482 in unpaid administrative expenses for s

Filing Documents

• d884683d10q.htm (10-Q) — 202KB
• d884683dex311.htm (EX-31.1) — 10KB
• d884683dex312.htm (EX-31.2) — 10KB
• d884683dex321.htm (EX-32.1) — 5KB
• d884683dex322.htm (EX-32.2) — 5KB
• 0001193125-24-258285.txt ( ) — 1285KB
• mmtrs-20240930.xsd (EX-101.SCH) — 19KB
• mmtrs-20240930_cal.xml (EX-101.CAL) — 7KB
• mmtrs-20240930_def.xml (EX-101.DEF) — 32KB
• mmtrs-20240930_lab.xml (EX-101.LAB) — 75KB
• mmtrs-20240930_pre.xml (EX-101.PRE) — 59KB
• d884683d10q_htm.xml (XML) — 188KB

— FINANCIAL STATEMENTS

PART I — FINANCIAL STATEMENTS 3

Financial Statements

Item 1. Financial Statements 3

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 8

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 10

Controls and Procedures

Item 4. Controls and Procedures 10

— OTHER INFORMATION

PART II — OTHER INFORMATION 12

Legal Proceedings

Item 1. Legal Proceedings 12

Risk Factors

Item 1A. Risk Factors 12

Unregistered Sale of Equity Securities and Use of Proceeds

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds 12

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 12

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 12

Other Information

Item 5. Other Information 12

Exhibits

Item 6. Exhibits 12

SIGNATURES

SIGNATURES 13 Table of Contents

— FINANCIAL STATEMENTS

PART I — FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MILLS MUSIC TRUST THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023 (UNAUDITED) Three Months Ended September 30 Nine Months Ended September 30 2024 2023 2024 2023 Receipts from EMI $ 512,648 $ 467,307 $ 1,049,997 $ 956,256 Undistributed Cash at Beginning of Period 46 29,382 (1) 46 4,421 (2) Disbursements — Administrative Expenses ( 141,921 ) ( 100,834 ) (1) ( 391,264 ) ( 274,675 ) (2) Balance Available for Distribution 370,773 395,855 658,779 686,002 Cash Distributions to Unit Holders ( 370,727 ) ( 395,809 ) ( 658,733 ) ( 685,956 ) Undistributed Cash at End of period $ 46 $ 46 $ 46 $ 46 Cash Distribution per Unit (based on 277,712 Trust Units outstanding) $ 1.33 $ 1.43 $ 2.37 $ 2.47 (1) Includes amounts reserved for administrative expenses in the aggregate amount of $ 29,334 attributable to the three-months ended June 30, 2023, which were actually paid by the Trust in July 2023. (2) Includes amounts reserved for administrative expenses in the aggregate amount of $ 4,375 attributable to the fourth quarter of 2022, which were actually paid by the Trust in the first quarter of 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. 3 Table of Contents MILLS MUSIC TRUST NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 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 right to receive payment of a deferred contingent purchase

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 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 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 (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 officer 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 report

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