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| | | | | F-1 | | | |
| Annex A — Agreement and Plan of Merger, dated as of April 14, 2021 | | | | | | | |
| Annex B — Second Amended and Restated Certificate of Incorporation of the Combined Company | | | | | | | |
| Annex C — Amended and Restated Bylaws of the Combined Company | | | | | | | |
| Annex D — Reservoir | | | | | | | |
| | | Year Ended December 31, 2020 | | | Period from February 13, 2019 (inception) through December 31, 2019 | | ||||||
Income Statement Data: | | | | ||||||||||
Formation and operational costs | | | | $ | 109,998 | | | | | | 1,225 | | |
Loss from operations | | | | | (109,998) | | | | | | (1,225) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in the Trust Account | | | | | 5,785 | | | | | | — | | |
Unrealized gain on marketable securities held in the Trust Account | | | | | 828 | | | | | | — | | |
Other income | | | | | 6,613 | | | | | | — | | |
Net loss | | | | | (103,385) | | | | | | (1,225) | | |
Basic and diluted weighted average shares outstanding, ROCC Common Stock subject to possible redemption | | | | | 11,111,752 | | | | | | — | | |
Basic and diluted net loss per share, ROCC Common Stock subject to possible redemption | | | | $ | 0.00 | | | | | | | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Balance Sheet Data: | | | | ||||||||||
Trust Account | | | | $ | 115,006,613 | | | | | $ | — | | |
Total assets | | | | | 116,099,067 | | | | | | 25,000 | | |
Total liabilities | | | | | 83,654 | | | | | | 1,225 | | |
ROCC Common Stock subject to possible redemption | | | | | 111,015,410 | | | | | | — | | |
Stockholders’ equity | | | | | 5,000,003 | | | | | | 23,775 | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Income Statement Data: | | | | ||||||||||
Formation and operational costs | | | | $ | 204,239 | | | | | $ | 85 | | |
Loss from operations | | | | | (204,239) | | | | | | (85) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in the Trust Account | | | | | 6,208 | | | | | | — | | |
Change in fair value of warrant liabilities | | | | | (49,500) | | | | | | — | | |
Other expense, net | | | | | (43,292) | | | | | | — | | |
Loss before income taxes | | | | | (247,531) | | | | | | (85) | | |
Net loss | | | | | (247,531) | | | | | | (85) | | |
Basic and diluted weighted average shares outstanding, ROCC Common Stock subject to possible redemption | | | | | 11,088,616 | | | | | | — | | |
Basic and diluted net loss per share, ROCC Common Stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | 0.00 | | |
| | | As of March 31, 2021 | | | As of December 31, 2020 | | ||||||
Balance Sheet Data: | | | | ||||||||||
Trust Account | | | | $ | 115,012,821 | | | | | $ | 115,006,613 | | |
Total assets | | | | | 115,942,416 | | | | | | 116,099,067 | | |
Total liabilities | | | | | 303,784 | | | | | | 212,904 | | |
ROCC Common Stock subject to possible redemption | | | | | 110,638,630 | | | | | | 110,886,160 | | |
Stockholders’ equity | | | | | 5,000,002 | | | | | | 5,000,003 | | |
| | | Nine Months Ended December 31, | | | Year Ended March 31, | | ||||||||||||||||||
(in thousands) | | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 56,184 | | | | | $ | 40,310 | | | | | $ | 63,239 | | | | | $ | 45,127 | | |
Total costs and expenses | | | | | 44,667 | | | | | | 32,032 | | | | | | 47,761 | | | | | | 32,684 | | |
Operating income | | | | | 11,517 | | | | | | 8,279 | | | | | | 15,477 | | | | | | 12,443 | | |
Income before income taxes | | | | | 5,566 | | | | | | 13,582 | | | | | | 14,210 | | | | | | 4,356 | | |
Income tax expense | | | | | 1,336 | | | | | | 3,108 | | | | | | 4,199 | | | | | | 819 | | |
Net income | | | | | 4,229 | | | | | | 10,474 | | | | | | 10,011 | | | | | | 3,538 | | |
Net (income) / loss attributable to noncontrolling interests | | | | | (12) | | | | | | — | | | | | | 47 | | | | | | — | | |
Net income attributable to Reservoir | | | | | 4,217 | | | | | | 10,474 | | | | | | 10,058 | | | | | | 3,538 | | |
Total comprehensive income | | | | | 10,142 | | | | | | 8,738 | | | | | | 8,029 | | | | | | 2,961 | | |
Total comprehensive income attributable to Reservoir | | | | $ | 10,130 | | | | | $ | 8,738 | | | | | $ | 8,076 | | | | | $ | 2,961 | | |
Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | | $ | 17,332 | | | | | $ | 10,141 | | | | | $ | 11,882 | | | | | $ | 2,336 | | |
Net cash (used for) investing activities | | | | | (107,313) | | | | | | (52,078) | | | | | | (107,806) | | | | | | (29,713) | | |
Net cash provided by financing activities | | | | | 38,231 | | | | | | 47,191 | | | | | | 147,030 | | | | | | 30,397 | | |
| | | Year Ended March 31, | | |||||||||
(in thousands) | | | 2021 | | | 2020 | | ||||||
Income Statement Data: | | | | | | | | | |||||
Revenues | | | | $ | 81,778 | | | | | $ | 63,239 | | |
Total costs and expenses | | | | | 62,107 | | | | | | 47,761 | | |
Operating income | | | | | 19,671 | | | | | | 15,477 | | |
Income before income taxes | | | | | 12,790 | | | | | | 14,210 | | |
Income tax expense | | | | | 2,454 | | | | | | 4,199 | | |
Net income | | | | | 10,336 | | | | | | 10,011 | | |
Net (income) / loss attributable to noncontrolling interests | | | | | (47) | | | | | | 47 | | |
Net income attributable to Reservoir | | | | | 10,289 | | | | | | 10,058 | | |
Total comprehensive income | | | | | 16,818 | | | | | | 8,029 | | |
Total comprehensive income attributable to Reservoir | | | | | 16,771 | | | | | $ | 8,076 | | |
Cash Flow Data: | | | | | | | | | | | | | |
Net cash provided by operating activities | | | | $ | 16,247 | | | | | $ | 11,882 | | |
Net cash (used for) investing activities | | | | | (120,147) | | | | | | (107,806) | | |
Net cash provided by financing activities | | | | | 47,220 | | | | | | 147,030 | | |
(in thousands) | | | As of | | |||||||||
| March 31, | | |||||||||||
| 2021 | | | 2020 | | ||||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 9,210 | | | | | $ | 58,240 | | |
Total assets | | | | | 463,944 | | | | | | 396,591 | | |
Loans and secured notes payable | | | | | 211,532 | | | | | | 171,785 | | |
Total liabilities | | | | | 267,959 | | | | | | 225,499 | | |
Total shareholders’ equity | | | | | 195,985 | | | | | | 171,092 | | |
(in thousands) | | | As of | | |||||||||||||||
| December 31, 2020 | | | March 31, | | ||||||||||||||
| 2020 | | | 2019 | | ||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 12,402 | | | | | $ | 58,240 | | | | | $ | 9,031 | | |
Total assets | | | | | 452,281 | | | | | | 396,591 | | | | | | 218,465 | | |
Loans and secured notes payable | | | | | 202,504 | | | | | | 171,785 | | | | | | 114,611 | | |
Total liabilities | | | | | 262,997 | | | | | | 225,499 | | | | | | 136,214 | | |
Total shareholders’ equity | | | | | 189,284 | | | | | | 171,092 | | | | | | 82,251 | | |
| | Historical | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | Historical | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||
| | Reservoir Holdings, Inc. | | Roth CH Acquisition II Co. | | Scenario 1 (Assuming No Additional Redemption into Cash) | | Scenario 2 (Assuming Maximum Redemption into Cash) | | | Reservoir Holdings, Inc. | | Roth CH Acquisition II Co. | | Scenario 1 (Assuming No Additional Redemption into Cash) | | Scenario 2 (Assuming Maximum Redemption into Cash) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Pro Forma December 31, 2020 (A) | | Pro Forma December 31, 2020 (B) | | Transaction Accounting Adjustments | | Note | | Pro Forma Combined Company | | Transaction Accounting Adjustments | | Note | | Pro Forma Combined Company | | | March 31, 2021 (A) | | March 31, 2021 (B) | | Transaction Accounting Adjustments | | Note | | Pro Forma Combined Company | | Transaction Accounting Adjustments | | Note | | Pro Forma Combined Company | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Cash and cash equivalents | | | $ | 12,401,568 | | | | $ | 696,567 | | | | $ | | | | | $ | | | | $ | | | | | $ | | | | | $ | 9,209,920 | | | | $ | 549,040 | | | | $ | ― | | | | | | $ | 269,006,781 | | | | $ | ― | | | | | | $ | 158,444,930 | | | ||||||||||||||||||||||
Cash and cash equivalents | | | | ― | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | 115,012,821 | | | 5(c)1 | | | | ― | | | | | 115,012,821 | | | 5(c)1 | | | | ― | | | ||||||||||||||||
Cash and cash equivalents | | | | ― | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | ― | | | | | | | ― | | | | | (110,561,851) | | | 5(c)2 | | | | ― | | | ||||||||||||||||
Cash and cash equivalents | | | | ― | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | 144,235,000 | | | 5(d) | | | | ― | | | | | 144,235,000 | | | 5(d) | | | | ― | | | ||||||||||||||||
Accounts receivable | | | | 12,748,995 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | | | | 15,813,384 | | | | | ― | | | | | ― | | | | | | | 15,813,384 | | | | | ― | | | | | | | 15,813,384 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current portion of royalty advances | | | | 13,087,706 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12,840,855 | | | | | ― | | | | | ― | | | | | | | 12,840,855 | | | | | ― | | | | | | | 12,840,855 | | | ||||||||||||||||
Inventory and prepaid expenses | | | | 896,149 | | | | | 395,887 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,406,379 | | | | | 380,555 | | | | | ― | | | | | | | 1,786,934 | | | | | ― | | | | | | | 1,786,934 | | | ||||||||||||||||
Total current assets | | | | 39,134,418 | | | | | 1,092,454 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 39,270,538 | | | | | 929,595 | | | | | 259,247,821 | | | | | | | 299,447,954 | | | | | 148,685,970 | | | | | | | 188,886,103 | | | ||||||||||||||||
Cash and marketable securities held in Trust Account | | | | ― | | | | | 115,006,613 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | 115,012,821 | | | | | (115,012,821) | | | 5(c)1 | | | | ― | | | | | (115,012,821) | | | 5(c)1 | | | | ― | | | ||||||||||||||||
Property, plant and equipment, net | | | | 364,920 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 321,766 | | | | | ― | | | | | ― | | | | | | | 321,766 | | | | | ― | | | | | | | 321,766 | | | ||||||||||||||||
Intangible assets, net | | | | 380,262,696 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 393,238,010 | | | | | ― | | | | | ― | | | | | | | 393,238,010 | | | | | ― | | | | | | | 393,238,010 | | | ||||||||||||||||
Royalty advances, net of current portion | | | | 30,356,958 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 28,741,225 | | | | | ― | | | | | ― | | | | | | | 28,741,225 | | | | | ― | | | | | | | 28,741,225 | | | ||||||||||||||||
Investment in equity affiliate | | | | 1,517,238 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,591,179 | | | | | ― | | | | | ― | | | | | | | 1,591,179 | | | | | ― | | | | | | | 1,591,179 | | | ||||||||||||||||
Other assets | | | | 644,521 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 781,735 | | | | | ― | | | | | ― | | | | | | | 781,735 | | | | | ― | | | | | | | 781,735 | | | ||||||||||||||||
Total assets | | | $ | 452,280,751 | | | | $ | 116,099,067 | | | | $ | | | | | | $ | | | | $ | | | | | | $ | | | | | $ | 463,944,453 | | | | $ | 115,942,416 | | | | $ | 144,235,000 | | | | | | $ | 724,121,869 | | | | $ | 33,673,149 | | | | | | $ | 613,560,018 | | | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Accounts payable and accrued liabilities | | | $ | 2,065,272 | | | | $ | 83,654 | | | | $ | | | | | | $ | | | | $ | | | | | | $ | | | | | $ | 3,316,768 | | | | $ | 125,034 | | | | $ | 13,875,000 | | | 5(f) | | | $ | 17,316,802 | | | | $ | 13,875,000 | | | 5(f) | | | $ | 17,316,802 | | | ||||||||||||||||||||
Amounts due to related parties | | | | 111,126 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 290,172 | | | | | ― | | | | | ― | | | | | | | 290,172 | | | | | | | | | | | | 290,172 | | | ||||||||||||||||
Accrued payroll | | | | 1,442,301 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,634,852 | | | | | ― | | | | | ― | | | | | | | 1,634,852 | | | | | ― | | | | | | | 1,634,852 | | | ||||||||||||||||
Royalties payable | | | | 17,694,559 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,656,566 | | | | | ― | | | | | ― | | | | | | | 14,656,566 | | | | | ― | | | | | | | 14,656,566 | | | ||||||||||||||||
Other current liabilities | | | | 4,514,291 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,615,488 | | | | | ― | | | | | ― | | | | | | | 2,615,488 | | | | | ― | | | | | | | 2,615,488 | | | ||||||||||||||||
Current portion of loans and secured notes payable | | | | 1,000,000 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,000,000 | | | | | ― | | | | | (1,000,000) | | | 5(e) | | | | ― | | | | | (1,000,000) | | | 5(e) | | | | ― | | | ||||||||||||||||
Income taxes payable | | | | 656,014 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 533,495 | | | | | ― | | | | | ― | | | | | | | 533,495 | | | | | ― | | | | | | | 533,495 | | | ||||||||||||||||
Deferred revenue | | | | 1,873,553 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,337,987 | | | | | ― | | | | | ― | | | | | | | 1,337,987 | | | | | ― | | | | | | | 1,337,987 | | | ||||||||||||||||
Total current liabilities | | | | 29,357,116 | | | | | 83,654 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,385,328 | | | | | 125,034 | | | | | 12,875,000 | | | | | | | 38,385,362 | | | | | 12,875,000 | | | | | | | 38,385,362 | | | ||||||||||||||||
Long-term debt, net of current maturities | | | | 17,750,000 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 17,500,000 | | | | | ― | | | | | (17,500,000) | | | 5(e) | | | | ― | | | | | (17,500,000) | | | 5(e) | | | | ― | | | ||||||||||||||||
Debt issue cost, net | | | | (3,237,015) | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (3,058,973) | | | | | ― | | | | | ― | | | | | | | (3,058,973) | | | | | ― | | | | | | | (3,058,973) | | | ||||||||||||||||
Secured line of credit | | | | 187,990,848 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 197,090,848 | | | | | ― | | | | | 18,500,000 | | | 5(e) | | | | 215,590,848 | | | | | 18,500,000 | | | 5(e) | | | | 215,590,848 | | | ||||||||||||||||
Fair value of swaps | | | | 6,295,120 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,566,537 | | | | | ― | | | | | ― | | | | | | | 4,566,537 | | | | | ― | | | | | | | 4,566,537 | | | ||||||||||||||||
Deferred income taxes | | | | 18,151,962 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 19,735,537 | | | | | ― | | | | | ― | | | | | | | 19,735,537 | | | | | ― | | | | | | | 19,735,537 | | | ||||||||||||||||
Warrant liabilities | | | | ― | | | | | 178,750 | | | | | ― | | | | | | | 178,750 | | | | | ― | | | | | | | 178,750 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | | | | 6,689,124 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6,739,971 | | | | | ― | | | | | ― | | | | | | | 6,739,971 | | | | | ― | | | | | | | 6,739,971 | | | ||||||||||||||||
Total liabilities | | | | 262,997,155 | | | | | 83,654 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 267,959,248 | | | | | 303,784 | | | | | 13,875,000 | | | | | | | 282,138,032 | | | | | 13,875,000 | | | | | | | 282,138,032 | | | ||||||||||||||||
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Common stock subject to possible redemption | | | | ― | | | | | 111,015,410 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | 110,638,630 | | | | | (110,638,630) | | | 5(c)1 | | | | ― | | | | | (110,638,630) | | | 5(c)2 | | | | ― | | | ||||||||||||||||
Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Common stock | | | | | | | | | 355 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | 359 | | | | | ― | | | | | | | 359 | | | | | ― | | | | | | | 359 | | | ||||||||||||||||
Common stock | | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1 | | | | | ― | | | | | 4,364 | | | 5(b) | | | | 4,365 | | | | | 4,364 | | | 5(b) | | | | 4,365 | | | ||||||||||||||||
Common stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | 1,106 | | | 5(c)1 | | | | 1,106 | | | | | 43 | | | 5(c)2 | | | | 43 | | | ||||||||||||||||
Common stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | 1,500 | | | 5(d) | | | | 1,500 | | | | | 1,500 | | | 5(d) | | | | 1,500 | | | ||||||||||||||||
Preferred stock | | | | 81,632,500 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 81,632,500 | | | | | ― | | | | | (81,632,500) | | | 5(a) | | | | ― | | | | | (81,632,500) | | | 5(a) | | | | ― | | | ||||||||||||||||
Additional paid-in capital | | | | | | | | | 5,104,258 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,370,137 | | | | | ― | | | | | | | 5,370,137 | | | | | ― | | | | | | | 5,370,137 | | | ||||||||||||||||
Additional paid-in capital | | | | 110,473,478 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 110,499,153 | | | | | ― | | | | | 81,632,500 | | | 5(a) | | | | 192,131,653 | | | | | 81,632,500 | | | 5(a) | | | | 192,131,653 | | | ||||||||||||||||
Additional paid-in capital | | | | ― | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | (4,364) | | | 5(b) | | | | (4,364) | | | | | (4,364) | | | 5(b) | | | | (4,364) | | | ||||||||||||||||
Additional paid-in capital | | | | ― | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | 110,637,524 | | | 5(c)1 | | | | 110,637,524 | | | | | 76,736 | | | 5(c)2 | | | | 76,736 | | | ||||||||||||||||
Additional paid-in capital | | | | ― | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | 144,233,500 | | | 5(d) | | | | 144,233,500 | | | | | 144,233,500 | | | 5(d) | | | | 144,233,500 | | | ||||||||||||||||
Additional paid-in capital | | | | ― | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ― | | | ��� | | ― | | | | | (13,875,000) | | | 5(f) | | | | (13,875,000) | | | | | (13,875,000) | | | 5(f) | | | | (13,875,000) | | | ||||||||||||||||
Additional paid-in capital | | | | ― | | | | | ― | | | | | | | | | | | | | | ��� | | | | | | | | | | | | | | | | | ― | | | | | ― | | | | | (370,494) | | | 5(g) | | | | (370,494) | | | | | (370,494) | | | 5(g) | | | | (370,494) | | | |||||||||||||||
Accumulated deficit | | | | (5,320,424) | | | | | (104,610) | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Retained earnings (accumulated deficit) | | | | 751,496 | | | | | (370,494) | | | | | 370,494 | | | 5(g) | | | | 751,496 | | | | | 370,494 | | | 5(g) | | | | 751,496 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income | | | | 1,526,932 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,096,358 | | | | | ― | | | | | ― | | | | | | | 2,096,358 | | | | | ― | | | | | | | 2,096,358 | | | ||||||||||||||||
Noncontrolling interest | | | | 971,109 | | | | | ― | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,005,697 | | | | | ― | | | | | ― | | | | | | | 1,005,697 | | | | | ― | | | | | | | 1,005,697 | | | ||||||||||||||||
Total stockholders’ equity | | | | 189,283,596 | | | | | 5,000,003 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 195,985,205 | | | | | 5,000,002 | | | | | 240,998,630 | | | | | | | 441,983,837 | | | | | 130,436,779 | | | | | | | 331,421,986 | | | ||||||||||||||||
Total liabilities and stockholders’ equity | | | $ | 452,280,751 | | | | $ | 116,099,067 | | | | $ | | | | | | $ | | | | $ | | | | | | $ | | | | | | $ | 463,944,453 | | | | $ | 115,942,416 | | | | $ | 144,235,000 | | | | | | $ | 724,121,869 | | | | $ | 33,673,149 | | | | | | $ | 613,560,018 | | |
| | | Historical | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||
| | | Reservoir Holdings, Inc. | | | Roth CH Acquisition II Co. | | | Scenario 1 (Assuming No Additional Redemption into Cash) | | | Scenario 2 (Assuming Maximum Redemption into Cash) | | ||||||||||||||||||||||||||||||
| | | Pro forma Three Months Ended March 31, 2021 (A) | | | Historical Three Months Ended March 31, 2021 (B) | | | Transaction Accounting Adjustments | | | Note | | | Pro Forma Combined Company | | | Transaction Accounting Adjustments | | | Note | | | Pro Forma Combined Company | | ||||||||||||||||||
Revenues | | | | $ | 25,593,599 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 25,593,599 | | | | | $ | — | | | | | | | | $ | 25,593,599 | | |
Cost of revenue | | | | | 9,172,247 | | | | | | — | | | | | | — | | | | | | | | | 9,172,247 | | | | | | — | | | | | | | | | 9,172,247 | | |
Administration expenses | | | | | 4,585,927 | | | | | | 204,239 | | | | | | — | | | | | | | | | 4,790,166 | | | | | | — | | | | | | | | | 4,790,166 | | |
Amortization and depreciation | | | | | 3,681,589 | | | | | | — | | | | | | — | | | | | | | | | 3,681,589 | | | | | | — | | | | | | | | | 3,681,589 | | |
Total costs and expenses | | | | | 17,439,763 | | | | | | 204,239 | | | | | | — | | | | | | | | | 17,644,002 | | | | | | — | | | | | | | | | 17,644,002 | | |
Operating income | | | | | 8,153,836 | | | | | | (204,239) | | | | | | — | | | | | | | | | 7,949,597 | | | | | | — | | | | | | | | | 7,949,597 | | |
Interest expense | | | | | (2,304,183) | | | | | | — | | | | | | — | | | | | | | | | (2,304,183) | | | | | | — | | | | | | | | | (2,304,183) | | |
Gain on fair value of swaps | | | | | 1,728,584 | | | | | | — | | | | | | — | | | | | | | | | 1,728,584 | | | | | | — | | | | | | | | | 1,728,584 | | |
Loss on foreign exchange | | | | | (361,091) | | | | | | — | | | | | | — | | | | | | | | | (361,091) | | | | | | — | | | | | | | | | (361,091) | | |
Change in fair value of warrant liabilities | | | | | — | | | | | | (49,500) | | | | | | — | | | | | | | | | (49,500) | | | | | | — | | | | | | | | | (49,500) | | |
Interest and other income | | | | | 7,091 | | | | | | 6,208 | | | | | | — | | | | | | | | | 13,299 | | | | | | (6,208) | | | | 6(b) | | | | | 7,091 | | |
| | | | | (929,599) | | | | | | (43,292) | | | | | | — | | | | | | | | | (972,891) | | | | | | (6,208) | | | | | | | | | (979,099) | | |
Income before income taxes | | | | | 7,224,237 | | | | | | (247,531) | | | | | | — | | | | | | | | | 6,976,706 | | | | | | (6,208) | | | | | | | | | 6,970,498 | | |
Income tax benefit (expense) | | | | | (1,117,729) | | | | | | — | | | | | | — | | | | | | | | | (1,117,729) | | | | | | — | | | | | | | | | (1,117,729) | | |
Net income (loss) | | | | $ | 6,106,508 | | | | | $ | (247,531) | | | | | $ | — | | | | | | | | $ | 5,858,977 | | | | | $ | (6,208) | | | | | | | | $ | 5,852,769 | | |
Net income attributable to noncontrolling interests | | | | | (34,588) | | | | | | — | | | | | | — | | | | | | | | | (34,588) | | | | | | — | | | | | | | | | (34,588) | | |
Net income (loss) attributable to the Company | | | | $ | 6,071,920 | | | | | $ | (247,531) | | | | | $ | — | | | | | | | | $ | 5,824,389 | | | | | $ | (6,208) | | | | | | | | $ | 5,818,181 | | |
Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 26.62 | | | | | $ | (0.07) | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | $ | 0.09 | | |
Diluted | | | | $ | 26.62 | | | | | $ | (0.07) | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | $ | 0.09 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Basic | | | | | 145,560 | | | | | | 3,561,384 | | | | | | | | | | 6(c) | | | | | 73,299,393 | | | | | | | | | | 6(c) | | | | | 62,663,699 | | |
Diluted | | | | | 228,060 | | | | | | 3,561,384 | | | | | | | | | | 6(c) | | | | | 73,299,393 | | | | | | | | | | 6(c) | | | | | 62,663,699 | | |
| | | Historical | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||
| | | Reservoir Holdings, Inc. | | | Roth CH Acquisition II Co. | | | Scenario 1 (Assuming No Additional Redemption into Cash) | | | Scenario 2 (Assuming Maximum Redemption into Cash) | | ||||||||||||||||||||||||||||||
| | | Pro forma December 31, 2020 (A) | | | Historical December 31, 2020 (B) | | | Transaction Accounting Adjustments | | | Note | | | Pro Forma Combined Company | | | Transaction Accounting Adjustments | | | Note | | | Pro Forma Combined Company | | ||||||||||||||||||
Revenues | | | | $ | 79,112,442 | | | | | $ | — | | | | | $ | | | | | | | $ | | | | | $ | | | | | | | | $ | | | |||||
Cost of revenue | | | | | 34,332,586 | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Administration expenses | | | | | 13,056,548 | | | | | | 109,998 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization and depreciation | | | | | 13,007,252 | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total costs and expenses | | | | | 60,396,386 | | | | | | 109,998 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | | | 18,716,056 | | | | | | (109,998) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (8,610,363) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss on fair value of swaps | | | | | (540,447) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss on foreign exchange | | | | | (3,426,690) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and other income | | | | | 55,136 | | | | | | 6,613 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | (12,522,364) | | | | | | 6,613 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | | | 6,193,692 | | | | | | (103,385) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax benefit (expense) | | | | | (2,427,964) | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 3,765,728 | | | | | $ | (103,385) | | | | | $ | | | | | | | | $ | | | | | $ | | | | | | | | $ | | | ||||
Net loss attributable to noncontrolling interests | | | | | 34,942 | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to the Company | | | | $ | 3,800,670 | | | | | $ | (103,385) | | | | | $ | | | | | | | | $ | | | | | $ | | | | | | | | $ | | | ||||
Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 16.84 | | | | | $ | (0.04) | | | | | | | | | | | | | | $ | | | | | | | | | | | | | | $ | | | ||
Diluted | | | | $ | 16.84 | | | | | $ | (0.04) | | | | | | | | | | | | | | $ | | | | | | | | | | | | | | $ | | | ||
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 143,252 | | | | | | 2,545,512 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Diluted | | | | | 225,629 | | | | | | 2,545,512 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Historical | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||
| | | Reservoir Holdings, Inc. | | | Roth CH Acquisition II Co. | | | Scenario 1 (Assuming No Additional Redemption into Cash) | | | Scenario 2 (Assuming Maximum Redemption into Cash) | | ||||||||||||||||||||||||||||||
| | | Pro forma December 31, 2020 (A) | | | Historical December 31, 2020 (B) | | | Transaction Accounting Adjustments | | | Note | | | Pro Forma Combined Company | | | Transaction Accounting Adjustments | | | Note | | | Pro Forma Combined Company | | ||||||||||||||||||
Revenues | | | | $ | 79,112,442 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 79,112,442 | | | | | $ | — | | | | | | | | $ | 79,112,442 | | |
Cost of revenue | | | | | 34,332,586 | | | | | | — | | | | | | — | | | | | | | | | 34,332,586 | | | | | | — | | | | | | | | | 34,332,586 | | |
Administration expenses | | | | | 13,056,548 | | | | | | 109,998 | | | | | | 345,368 | | | | 6(a) | | | | | 13,511,914 | | | | | | 345,368 | | | | 6(a) | | | | | 13,511,914 | | |
Amortization and depreciation | | | | | 13,007,252 | | | | | | — | | | | | | — | | | | | | | | | 13,007,252 | | | | | | — | | | | | | | | | 13,007,252 | | |
Total costs and expenses | | | | | 60,396,386 | | | | | | 109,998 | | | | | | 345,368 | | | | | | | | | 60,851,752 | | | | | | 345,368 | | | | | | | | | 60,851,752 | | |
Operating income | | | | | 18,716,056 | | | | | | (109,998) | | | | | | (345,368) | | | | | | | | | 18,260,690 | | | | | | (345,368) | | | | | | | | | 18,260,690 | | |
Interest expense | | | | | (8,610,363) | | | | | | — | | | | | | — | | | | | | | | | (8,610,363) | | | | | | — | | | | | | | | | (8,610,363) | | |
Loss on fair value of swaps | | | | | (3,426,690) | | | | | | — | | | | | | — | | | | | | | | | (3,426,690) | | | | | | — | | | | | | | | | (3,426,690) | | |
Loss on foreign exchange | | | | | (540,447) | | | | | | — | | | | | | — | | | | | | | | | (540,447) | | | | | | — | | | | | | | | | (540,447) | | |
Change in fair value of warrant liabilities | | | | | — | | | | | | (17,875) | | | | | | — | | | | | | | | | (17,875) | | | | | | — | | | | | | | | | (17,875) | | |
Initial public offering costs allocated to warrant liabilities | | | | | — | | | | | | (478) | | | | | | — | | | | | | | | | (478) | | | | | | — | | | | | | | | | (478) | | |
Interest and other income | | | | | 55,136 | | | | | | 6,613 | | | | | | — | | | | | | | | | 61,749 | | | | | | (6,613) | | | | 6(b) | | | | | 55,136 | | |
| | | | | (12,522,364) | | | | | | (11,740) | | | | | | — | | | | | | | | | (12,534,104) | | | | | | (6,613) | | | | | | | | | (12,540,717) | | |
Income before income taxes | | | | | 6,193,692 | | | | | | (121,738) | | | | | | (345,368) | | | | | | | | | 5,726,586 | | | | | | (351,981) | | | | | | | | | 5,719,973 | | |
Income tax benefit (expense) | | | | | (2,427,964) | | | | | | — | | | | | | — | | | | | | | | | (2,427,964) | | | | | | — | | | | | | | | | (2,427,964) | | |
Net income (loss) | | | | $ | 3,765,728 | | | | | $ | (121,738) | | | | | $ | (345,368) | | | | | | | | $ | 3,298,622 | | | | | $ | (351,981) | | | | | | | | $ | 3,292,009 | | |
Net loss attributable to noncontrolling interests | | | | | 34,942 | | | | | | — | | | | | | — | | | | | | | | | 34,942 | | | | | | — | | | | | | | | | 34,942 | | |
Net income (loss) attributable to the Company | | | | $ | 3,800,670 | | | | | $ | (121,738) | | | | | $ | (345,368) | | | | | | | | $ | 3,333,564 | | | | | $ | (351,981) | | | | | | | | $ | 3,326,951 | | |
Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 16.84 | | | | | $ | (0.05) | | | | | | | | | | | | | | $ | 0.05 | | | | | | | | | | | | | | $ | 0.05 | | |
Diluted | | | | $ | 16.84 | | | | | $ | (0.05) | | | | | | | | | | | | | | $ | 0.05 | | | | | | | | | | | | | | $ | 0.05 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 143,252 | | | | | | 2,545,512 | | | | | | | | | | 6(c) | | | | | 73,299,393 | | | | | | | | | | 6(c) | | | | | 62,625,702 | | |
Diluted | | | | | 225,629 | | | | | | 2,545,512 | | | | | | | | | | 6(c) | | | | | 73,299,393 | | | | | | | | | | 6(c) | | | | | 62,625,702 | | |
| | | [i] FYE March 31, 2021 | | | [ii] 9 mos. ended 12/31/20 | | | 3 mos. March 31, 2021 = [i] – [ii] | | |||||||||
| | | | | | | | | $ | | | | | | | | |||
Revenues | | | | | 81,777,789 | | | | | | 56,184,190 | | | | | | 25,593,599 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 32,991,979 | | | | | | 23,819,732 | | | | | | 9,172,247 | | |
Amortization and depreciation | | | | | 14,128,604 | | | | | | 10,447,015 | | | | | | 3,681,589 | | |
Administration expenses | | | | | 14,986,085 | | | | | | 10,400,158 | | | | | | 4,585,927 | | |
| | | [i] FYE March 31, 2021 | | | [ii] 9 mos. ended 12/31/20 | | | 3 mos. March 31, 2021 = [i] – [ii] | | |||||||||
| | | | | | | | | $ | | | | | | | | |||
Total costs and expenses | | | | | 62,106,668 | | | | | | 44,666,905 | | | | | | 17,439,763 | | |
Operating income | | | | | 19,671,121 | | | | | | 11,517,285 | | | | | | 8,153,836 | | |
Interest expense | | | | | (8,972,100) | | | | | | (6,667,917) | | | | | | (2,304,183) | | |
(Loss) on foreign exchange | | | | | (910,799) | | | | | | (549,708) | | | | | | (361,091) | | |
Gain on fair value of swaps | | | | | 2,988,322 | | | | | | 1,259,738 | | | | | | 1,728,584 | | |
Interest and other income | | | | | 13,243 | | | | | | 6,152 | | | | | | 7,091 | | |
Income before income taxes | | | | | 12,789,787 | | | | | | 5,565,550 | | | | | | 7,224,237 | | |
Income tax expense | | | | | 2,454,153 | | | | | | 1,336,424 | | | | | | 1,117,729 | | |
Net income | | | | | 10,335,634 | | | | | | 4,229,126 | | | | | | 6,106,508 | | |
Net (income) loss attributable to noncontrolling interests | | | | | (46,673) | | | | | | (12,085) | | | | | | (34,588) | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 10,288,961 | | | | | | 4,217,041 | | | | | | 6,071,920 | | |
|
| | | | | | | 3 mos. ended 3/31/20 | | | | | | | | | | 3 mos. ended 3/31/20 | | | | | | | |||||||||||||||||||||||||||||||||||||||
| | [A] 9 mos. ended 12/31/20 | | [i] FYE March 31, 2020 | | [ii] 9 mos. ended 12/31/19 | | [B] 3 mos. March 31, 2020 = [i] – [ii] | | [C] = [A] + [B] 12 mos. ended 12/31/20 | | | [A] 9 mos. ended 12/31/20 | | [i] FYE March 31, 2020 | | [ii] 9 mos. ended 12/31/19 | | [B] 3 mos. March 31, 2020 = [i] – [ii] | | [C] = [A] + [B] 12 mos. ended 12/31/20 | | ||||||||||||||||||||||||||||||||||||||||
| | $ | | | | | | | | $ | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Revenues | | | | 56,184,190 | | | | | 63,238,672 | | | | | 40,310,420 | | | | | 22,928,252 | | | | | 79,112,442 | | | | | | 56,184,190 | | | | | 63,238,672 | | | | | 40,310,420 | | | | | 22,928,252 | | | | | 79,112,442 | | | ||||||||||
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Cost of revenue | | | | 23,819,732 | | | | | 27,305,489 | | | | | 16,792,635 | | | | | 10,512,854 | | | | | 34,332,586 | | | | | | 23,819,732 | | | | | 27,305,489 | | | | | 16,792,635 | | | | | 10,512,854 | | | | | 34,332,586 | | | ||||||||||
Amortization and depreciation | | | | 10,447,015 | | | | | 8,423,197 | | | | | 5,862,960 | | | | | 2,560,237 | | | | | 13,007,252 | | | | | | 10,447,015 | | | | | 8,423,197 | | | | | 5,862,960 | | | | | 2,560,237 | | | | | 13,007,252 | | | ||||||||||
Administration expenses | | | | 10,400,158 | | | | | 12,032,673 | | | | | 9,376,283 | | | | | 2,656,390 | | | | | 13,056,548 | | | | | | 10,400,158 | | | | | 12,032,673 | | | | | 9,376,283 | | | | | 2,656,390 | | | | | 13,056,548 | | | ||||||||||
Total costs and expenses | | | | 44,666,905 | | | | | 47,761,359 | | | | | 32,031,878 | | | | | 15,729,481 | | | | | 60,396,386 | | | | | | 44,666,905 | | | | | 47,761,359 | | | | | 32,031,878 | | | | | 15,729,481 | | | | | 60,396,386 | | | ||||||||||
Operating Income | | | | 11,517,285 | | | | | 15,477,313 | | | | | 8,278,542 | | | | | 7,198,771 | | | | | 18,716,056 | | | | | | 11,517,285 | | | | | 15,477,313 | | | | | 8,278,542 | | | | | 7,198,771 | | | | | 18,716,056 | | | ||||||||||
Interest expense | | | | (6,667,917) | | | | | (6,463,381) | | | | | (4,520,935) | | | | | (1,942,446) | | | | | (8,610,363) | | | | | | (6,667,917) | | | | | (6,463,381) | | | | | (4,520,935) | | | | | (1,942,446) | | | | | (8,610,363) | | | ||||||||||
(Loss) gain on foreign exchange | | | | (549,708) | | | | | 30,700 | | | | | 21,439 | | | | | 9,261 | | | | | (540,447) | | | | | | (549,708) | | | | | 30,700 | | | | | 21,439 | | | | | 9,261 | | | | | (540,447) | | | ||||||||||
Gain (loss) on fair value of swaps | | | | 1,259,738 | | | | | (5,555,702) | | | | | (869,274) | | | | | (4,686,428) | | | | | (3,426,690) | | | | | | 1,259,738 | | | | | (5,555,702) | | | | | (869,274) | | | | | (4,686,428) | | | | | (3,426,690) | | | ||||||||||
Interest and other income | | | | 6,152 | | | | | 76,894 | | | | | 27,910 | | | | | 48,984 | | | | | 55,136 | | | | | | 6,152 | | | | | 76,894 | | | | | 27,910 | | | | | 48,984 | | | | | 55,136 | | | ||||||||||
Gain on retirement of RMM Issuer debt | | | | — | | | | | 10,644,084 | | | | | 10,644,084 | | | | | — | | | | | — | | | | | | — | | | | | 10,644,084 | | | | | 10,644,084 | | | | | — | | | | | — | | | ||||||||||
Income before income taxes | | | | 5,565,550 | | | | | 14,209,908 | | | | | 13,581,766 | | | | | 628,142 | | | | | 6,193,692 | | | | | | 5,565,550 | | | | | 14,209,908 | | | | | 13,581,766 | | | | | 628,142 | | | | | 6,193,692 | | | ||||||||||
Income tax expense | | | | 1,336,424 | | | | | 4,199,141 | | | | | 3,107,601 | | | | | 1,091,540 | | | | | 2,427,964 | | | | | | 1,336,424 | | | | | 4,199,141 | | | | | 3,107,601 | | | | | 1,091,540 | | | | | 2,427,964 | | | ||||||||||
Net income | | | | 4,229,126 | | | | | 10,010,767 | | | | | 10,474,165 | | | | | (463,398) | | | | | 3,765,728 | | | | | | 4,229,126 | | | | | 10,010,767 | | | | | 10,474,165 | | | | | (463,398) | | | | | 3,765,728 | | | ||||||||||
Net loss attributable to noncontrolling interests | | | | (12,085) | | | | | 47,027 | | | | | — | | | | | 47,027 | | | | | 34,942 | | | ||||||||||||||||||||||||||||||||||||
Net income attributable to Reservoir Holdings Inc. | | | | 4,217,041 | | | | | 10,057,794 | | | | | 10,474,165 | | | | | (416,371) | | | | | 3,800,670 | | |
| | | | | | | | | 3 mos. ended 3/31/20 | | | | | | | | |||||||||||||||
| [A] 9 mos. ended 12/31/20 | | | [i] FYE March 31, 2020 | | | [ii] 9 mos. ended 12/31/19 | | | [B] 3 mos. March 31, 2020 = [i] – [ii] | | | [C] = [A] + [B] 12 mos. ended 12/31/20 | | |||||||||||||||||
| | | | | | | | | $ | | | | | | | | | | | | | | | | | | | | |||
Net loss attributable to noncontrolling interests | | | | | (12,085) | | | | | | 47,027 | | | | | | — | | | | | | 47,027 | | | | | | 34,942 | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 4,217,041 | | | | | | 10,057,794 | | | | | | 10,474,165 | | | | | | (416,371) | | | | | | 3,800,670 | | |
|
| Reservoir Common Stock assumed outstanding prior to the consummation of the Business Combination and the PIPE Investment | | | | | 145,560 | | |
| Assumed Exchange Ratio | | | | | 191.3944 | | |
| | | | | | 27,859,355 | | |
| Reservoir Preferred Stock assumed outstanding prior to the consummation of the Business Combination and the PIPE Investment | | | | | 82,500 | | |
| Assumed Exchange Ratio | | | | | 191.3944 | | |
| | | | | | 15,790,038 | | |
| Estimated shares of ROCC Common Stock issued to Reservoir Stockholders upon consummation of the Business Combination and the PIPE Investment | | | | | 43,649,393 | | |
| | | 3 Months Ended March 31, 2021 | | | Year Ended December 31, 2020 | | ||||||||||||||||||
| Scenario 1 Combined (Assuming No Additional Redemptions Into Cash) | | | Scenario 2 Combined (Assuming Maximum Redemptions Into Cash) | | | Scenario 1 Combined (Assuming No Additional Redemptions Into Cash) | | | Scenario 2 Combined (Assuming Maximum Redemptions Into Cash) | | ||||||||||||||
Weighted-average common shares outstanding, basic and diluted: | | | | | | | | | | | | | | | | | | | | | | | | | |
Reservoir Holdings, Inc. weighted average shares outstanding(1) | | | | | 228,060 | | | | | | 228,060 | | | | | | 225,629 | | | | | | 225,629 | | |
Reservoir Holdings, Inc. shares of common stock surrendered and cancelled at acquisition | | | | | (228,060) | | | | | | (228,060) | | | | | | (225,629) | | | | | | (225,629) | | |
Roth CH Acquisition II, Inc. shares not subject to redemption(2) | | | | | 3,586,137 | | | | | | 3,586,137 | | | | | | 3,561,384 | | | | | | 3,561,384 | | |
Roth CH Acquisition II, Inc. shares subject to redemption reclassified to equity | | | | | 11,063,863 | | | | | | 428,169 | | | | | | 11,088,616 | | | | | | 414,925 | | |
Sale of additional Roth CH Acquisition II, Inc. shares in conjunction with the Recapitalization | | | | | 15,000,000 | | | | | | 15,000,000 | | | | | | 15,000,000 | | | | | | 15,000,000 | | |
Shares issued to Reservoir Holdings, Inc. in recapitalization | | | | | 43,649,393 | | | | | | 43,649,393 | | | | | | 43,649,393 | | | | | | 43,649,393 | | |
Weighted-average common shares outstanding, basic and diluted: | | | | | 73,299,393 | | | | | | 62,663,699 | | | | | | 73,299,393 | | | | | | 62,625,702 | | |
| | | | | | | | | | | | Unaudited Combined Pro Forma | | | | | | | | | | | | | Unaudited Combined Pro Forma | | ||||||||||||||||||||||||
| | Reservoir (Historical) | | ROCC (Historical) | | (Assuming No Redemptions) | | (Assuming Maximum Redemptions) | | | Reservoir (Historical) | | ROCC (Historical) | | (Assuming No Redemptions) | | (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||||||||||
As of and for the three months ended March 31,2021(1) | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Book value per share(2) | | | $ | 785.61 | | | | $ | 1.39 | | | | $ | 6.03 | | | | $ | 5.29 | | | |||||||||||||||||||||||||||||
Weighted average shares outstanding of common stock — basic | | | | 145,560 | | | | | 3,561,384 | | | | | 73,299,393 | | | | | 62,663,699 | | | |||||||||||||||||||||||||||||
Weighted average shares outstanding of common stock — diluted | | | | 228,060 | | | | | 3,561,384 | | | | | 73,299,393 | | | | | 62,663,699 | | | |||||||||||||||||||||||||||||
Earnings (loss) per share of common stock — basic | | | $ | 26.62 | | | | $ | (0.07) | | | | $ | 0.08 | | | | $ | 0.09 | | | |||||||||||||||||||||||||||||
Earnings (loss) per share of common stock — diluted | | | $ | 26.62 | | | | $ | (0.07) | | | | $ | 0.08 | | | | $ | 0.09 | | | |||||||||||||||||||||||||||||
As of and for the year ended December 31, 2020(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Book value per share(2) | | | $ | 739.57 | | | | $ | 1.41 | | | | $ | | | | $ | | | | | $ | 739.57 | | | | $ | 1.40 | | | | $ | 5.94 | | | | $ | 5.19 | | | ||||||||||
Weighted average shares outstanding of common stock — basic | | | | 143,252 | | | | | 2,545,512 | | | | | | | | | | | | | | | | 143,252 | | | | | 2,545,512 | | | | | 73,299,393 | | | | | 62,625,702 | | | ||||||||
Weighted average shares outstanding of common stock — diluted | | | | 225,629 | | | | | 2,545,512 | | | | | | | | | | | | | | | | 225,629 | | | | | 2,545,512 | | | | | 73,299,393 | | | | | 62,625,702 | | | ||||||||
Earnings (loss) per share of common stock — basic | | | | 16.84 | | | | | (0.04) | | | | | | | | | | | | | | | | 16.84 | | | | | (0.05) | | | | $ | 0.05 | | | | $ | 0.05 | | | ||||||||
Earnings (loss) per share of common stock — diluted | | | | 16.84 | | | | | (0.04) | | | | | | | | | | | | | | | | 16.84 | | | | | (0.05) | | | | $ | 0.05 | | | | $ | 0.05 | | |
(in millions, except percentages and leverage) | | | FY2019A | | | FY2020A | | | FY2021E | | | FY2022E | | | FY2023E | | | FY2024E | | | FY2025E | | |||||||||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Music Publishing revenues | | | | $ | 43 | | | | | $ | 54 | | | | | $ | 67 | | | | | $ | 78 | | | | | $ | 95 | | | | | $ | 109 | | | | | $ | 127 | | |
% Growth | | | | | 33% | | | | | | 27% | | | | | | 23% | | | | | | 17% | | | | | | 23% | | | | | | 14% | | | | | | 16% | | |
% Total revenues | | | | | 95% | | | | | | 85% | | | | | | 83% | | | | | | 75% | | | | | | 80% | | | | | | 80% | | | | | | 79% | | |
Recorded Music revenues | | | | $ | 2 | | | | | $ | 9 | | | | | $ | 12 | | | | | $ | 25 | | | | | $ | 22 | | | | | $ | 27 | | | | | $ | 32 | | |
% Growth | | | | | * | | | | | | 361% | | | | | | 35% | | | | | | 106% | | | | | | (10)% | | | | | | 19% | | | | | | 18% | | |
% Total revenues | | | | | 4% | | | | | | 14% | | | | | | 15% | | | | | | 24% | | | | | | 19% | | | | | | 19% | | | | | | 20% | | |
Other revenues | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | |
% Growth | | | | | 272% | | | | | | (13)% | | | | | | 223% | | | | | | 5% | | | | | | 5% | | | | | | 5% | | | | | | 5% | | |
% Total revenues | | | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | |
Total revenues | | | | $ | 45 | | | | | $ | 64 | | | | | $ | 80 | | | | | $ | 104 | | | | | $ | 119 | | | | | $ | 137 | | | | | $ | 160 | | |
% Growth | | | | | 40% | | | | | | 41% | | | | | | 26% | | | | | | 30% | | | | | | 15% | | | | | | 15% | | | | | | 16% | | |
Total Gross Profit: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Music Publishing gross profit (NPS) | | | | $ | 25 | | | | | $ | 29 | | | | | $ | 37 | | | | | $ | 40 | | | | | $ | 50 | | | | | $ | 56 | | | | | $ | 64 | | |
% Growth | | | | | 26% | | | | | | 18% | | | | | | 27% | | | | | | 8% | | | | | | 25% | | | | | | 13% | | | | | | 14% | | |
% Segment revenues | | | | | 58% | | | | | | 54% | | | | | | 56% | | | | | | 52% | | | | | | 52% | | | | | | 51% | | | | | | 50% | | |
Recorded Music Gross profit (NLS) | | | | $ | 1 | | | | | $ | 7 | | | | | $ | 9 | | | | | $ | 19 | | | | | $ | 17 | | | | | $ | 21 | | | | | $ | 25 | | |
% Growth | | | | | * | | | | | | 462% | | | | | | 31% | | | | | | 121% | | | | | | (11)% | | | | | | 22% | | | | | | 20% | | |
% Segment revenues | | | | | 60% | | | | | | 73% | | | | | | 71% | | | | | | 76% | | | | | | 76% | | | | | | 78% | | | | | | 79% | | |
Other gross profit | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | |
Total gross profit | | | | $ | 26 | | | | | $ | 36 | | | | | $ | 47 | | | | | $ | 60 | | | | | $ | 68 | | | | | $ | 78 | | | | | $ | 90 | | |
% Growth | | | | | 33% | | | | | | 37% | | | | | | 30% | | | | | | 29% | | | | | | 13% | | | | | | 15% | | | | | | 15% | | |
% Total revenues | | | | | 58% | | | | | | 57% | | | | | | 59% | | | | | | 58% | | | | | | 57% | | | | | | 57% | | | | | | 56% | | |
Adjusted EBITDA(1) | | | | $ | 15 | | | | | $ | 21 | | | | | $ | 29 | | | | | $ | 40 | | | | | $ | 47 | | | | | $ | 57 | | | | | $ | 68 | | |
% Growth | | | | | 54% | | | | | | 41% | | | | | | 41% | | | | | | 39% | | | | | | 18% | | | | | | 20% | | | | | | 19% | | |
% Total revenues | | | | | 32% | | | | | | 32% | | | | | | 36% | | | | | | 39% | | | | | | 40% | | | | | | 41% | | | | | | 43% | | |
Balance Sheet and Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(1) | | | | $ | 15 | | | | | $ | 21 | | | | | $ | 29 | | | | | $ | 40 | | | | | $ | 47 | | | | | $ | 57 | | | | | $ | 68 | | |
Recoupments | | | | | 10 | | | | | | 14 | | | | | | 14 | | | | | | 12 | | | | | | 11 | | | | | | 13 | | | | | | 17 | | |
Other | | | | | (13) | | | | | | (6) | | | | | | (9) | | | | | | (6) | | | | | | (5) | | | | | | (6) | | | | | | (7) | | |
Cash from operations | | | | | 12 | | | | | | 29 | | | | | | 33 | | | | | | 46 | | | | | | 54 | | | | | | 63 | | | | | | 78 | | |
Acquisitions | | | | $ | (32) | | | | | $ | (108) | | | | | $ | (116) | | | | | $ | (179) | | | | | $ | (76) | | | | | $ | (75) | | | | | $ | (75) | | |
Advances and other | | | | | (18) | | | | | | (22) | | | | | | (17) | | | | | | (27) | | | | | | (31) | | | | | | (25) | | | | | | (25) | | |
Cash from investing | | | | | (50) | | | | | | (130) | | | | | | (133) | | | | | | (206) | | | | | | (107) | | | | | | (100) | | | | | | (101) | | |
(in millions, except percentages and leverage) | | FY2019A | | FY2020A | | FY2021E | | FY2022E | | FY2023E | | FY2024E | | FY2025E | | | FY2019A | | FY2020A | | FY2021E | | FY2022E | | FY2023E | | FY2024E | | FY2025E | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Music Publishing revenues | | | $ | 43 | | | | $ | 54 | | | | $ | 67 | | | | $ | 78 | | | | $ | 95 | | | | $ | 109 | | | | $ | 127 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | 33% | | | | | 27% | | | | | 23% | | | | | 17% | | | | | 23% | | | | | 14% | | | | | 16% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Total revenues | | | | 95% | | | | | 85% | | | | | 83% | | | | | 75% | | | | | 80% | | | | | 80% | | | | | 79% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Music revenues | | | $ | 2 | | | | $ | 9 | | | | $ | 12 | | | | $ | 25 | | | | $ | 22 | | | | $ | 27 | | | | $ | 32 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | * | | | | | 361% | | | | | 35% | | | | | 106% | | | | | (10)% | | | | | 19% | | | | | 18% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Total revenues | | | | 4% | | | | | 14% | | | | | 15% | | | | | 24% | | | | | 19% | | | | | 19% | | | | | 20% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | | | $ | 0 | | | | $ | 0 | | | | $ | 1 | | | | $ | 1 | | | | $ | 1 | | | | $ | 1 | | | | $ | 1 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | 272% | | | | | (13)% | | | | | 223% | | | | | 5% | | | | | 5% | | | | | 5% | | | | | 5% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Total revenues | | | | 1% | | | | | 1% | | | | | 1% | | | | | 1% | | | | | 1% | | | | | 1% | | | | | 1% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | | | $ | 45 | | | | $ | 64 | | | | $ | 80 | | | | $ | 104 | | | | $ | 119 | | | | $ | 137 | | | | $ | 160 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | 40% | | | | | 41% | | | | | 26% | | | | | 30% | | | | | 15% | | | | | 15% | | | | | 16% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gross Profit: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Music Publishing gross profit (NPS) | | | $ | 25 | | | | $ | 29 | | | | $ | 37 | | | | $ | 40 | | | | $ | 50 | | | | $ | 56 | | | | $ | 64 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | 26% | | | | | 18% | | | | | 27% | | | | | 8% | | | | | 25% | | | | | 13% | | | | | 14% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Segment revenues | | | | 58% | | | | | 54% | | | | | 56% | | | | | 52% | | | | | 52% | | | | | 51% | | | | | 50% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Music Gross profit (NLS) | | | $ | 1 | | | | $ | 7 | | | | $ | 9 | | | | $ | 19 | | | | $ | 17 | | | | $ | 21 | | | | $ | 25 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | * | | | | | 462% | | | | | 31% | | | | | 121% | | | | | (11)% | | | | | 22% | | | | | 20% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Segment revenues | | | | 60% | | | | | 73% | | | | | 71% | | | | | 76% | | | | | 76% | | | | | 78% | | | | | 79% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other gross profit | | | $ | 0 | | | | $ | 0 | | | | $ | 1 | | | | $ | 1 | | | | $ | 1 | | | | $ | 1 | | | | $ | 1 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross profit | | | $ | 26 | | | | $ | 36 | | | | $ | 47 | | | | $ | 60 | | | | $ | 68 | | | | $ | 78 | | | | $ | 90 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | 33% | | | | | 37% | | | | | 30% | | | | | 29% | | | | | 13% | | | | | 15% | | | | | 15% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Total revenues | | | | 58% | | | | | 57% | | | | | 59% | | | | | 58% | | | | | 57% | | | | | 57% | | | | | 56% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | | | $ | 15 | | | | $ | 21 | | | | $ | 29 | | | | $ | 40 | | | | $ | 47 | | | | $ | 57 | | | | $ | 68 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Growth | | | | 54% | | | | | 41% | | | | | 41% | | | | | 39% | | | | | 18% | | | | | 20% | | | | | 19% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Total revenues | | | | 32% | | | | | 32% | | | | | 36% | | | | | 39% | | | | | 40% | | | | | 41% | | | | | 43% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet and Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | | | $ | 15 | | | | $ | 21 | | | | $ | 29 | | | | $ | 40 | | | | $ | 47 | | | | $ | 57 | | | | $ | 68 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recoupments | | | | 10 | | | | | 14 | | | | | 14 | | | | | 12 | | | | | 11 | | | | | 13 | | | | | 17 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | | | | (13) | | | | | (6) | | | | | (9) | | | | | (6) | | | | | (5) | | | | | (6) | | | | | (7) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash from operations | | | | 12 | | | | | 29 | | | | | 33 | | | | | 46 | | | | | 54 | | | | | 63 | | | | | 78 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | | | $ | (32) | | | | $ | (108) | | | | $ | (116) | | | | $ | (179) | | | | $ | (76) | | | | $ | (75) | | | | $ | (75) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Advances and other | | | | (18) | | | | | (22) | | | | | (17) | | | | | (27) | | | | | (31) | | | | | (25) | | | | | (25) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash from investing | | | | (50) | | | | | (130) | | | | | (133) | | | | | (206) | | | | | (107) | | | | | (100) | | | | | (101) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Free cash flow | | | $ | (38) | | | | $ | (102) | | | | $ | (100) | | | | $ | (160) | | | | $ | (53) | | | | $ | (37) | | | | $ | (22) | | | | | $ | (38) | | | | $ | (102) | | | | $ | (100) | | | | $ | (160) | | | | $ | (53) | | | | $ | (37) | | | | $ | (22) | | | ||||||||||||||
Adjusted free cash flow(2) | | | | (6) | | | | | 7 | | | | | 16 | | | | | 19 | | | | | 23 | | | | | 38 | | | | | 53 | | | | | | (6) | | | | | 7 | | | | | 16 | | | | | 19 | | | | | 23 | | | | | 38 | | | | | 53 | | | ||||||||||||||
% Growth | | | | * | | | | | * | | | | | 139% | | | | | 20% | | | | | 20% | | | | | 64% | | | | | 39% | | | | | | * | | | | | * | | | | | 139% | | | | | 20% | | | | | 20% | | | | | 64% | | | | | 39% | | | ||||||||||||||
% Total revenues | | | | (12)% | | | | | 11% | | | | | 20% | | | | | 19% | | | | | 19% | | | | | 28% | | | | | 33% | | | | | | (12)% | | | | | 11% | | | | | 20% | | | | | 19% | | | | | 19% | | | | | 28% | | | | | 33% | | | ||||||||||||||
% Total EBITDA | | | | (39)% | | | | | 33% | | | | | 56% | | | | | 48% | | | | | 49% | | | | | 67% | | | | | 78% | | | | | | (39)% | | | | | 33% | | | | | 56% | | | | | 48% | | | | | 49% | | | | | 67% | | | | | 78% | | | ||||||||||||||
Cash as of period end | | | $ | 9 | | | | $ | 58 | | | | $ | 258 | | | | $ | 10 | | | | $ | 10 | | | | $ | 10 | | | | $ | 10 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt as of period end | | | | 105 | | | | | 176 | | | | | 216 | | | | | 128 | | | | | 181 | | | | | 218 | | | | | 241 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net debt | | | | 96 | | | | | 118 | | | | | (42) | | | | | 118 | | | | | 171 | | | | | 208 | | | | | 231 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Gross leverage | | | | 7.2x | | | | | 8.5x | | | | | 7.4x | | | | | 3.2x | | | | | 3.8x | | | | | 3.8x | | | | | 3.5x | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net leverage | | | | 6.6x | | | | | 5.7x | | | | | (1.5)x | | | | | 2.9x | | | | | 3.6x | | | | | 3.7x | | | | | 3.4x | | |
(in millions, except percentages and leverage) | | | FY2019A | | | FY2020A | | | FY2021E | | | FY2022E | | | FY2023E | | | FY2024E | | | FY2025E | | |||||||||||||||||||||
Cash as of period end | | | | $ | 9 | | | | | $ | 58 | | | | | $ | 258 | | | | | $ | 10 | | | | | $ | 10 | | | | | $ | 10 | | | | | $ | 10 | | |
Debt as of period end | | | | | 105 | | | | | | 176 | | | | | | 216 | | | | | | 128 | | | | | | 181 | | | | | | 218 | | | | | | 241 | | |
Net debt | | | | | 96 | | | | | | 118 | | | | | | (42) | | | | | | 118 | | | | | | 171 | | | | | | 208 | | | | | | 231 | | |
Gross leverage | | | | | 7.2x | | | | | | 8.5x | | | | | | 7.4x | | | | | | 3.2x | | | | | | 3.8x | | | | | | 3.8x | | | | | | 3.5x | | |
Net leverage | | | | | 6.6x | | | | | | 5.7x | | | | | | (1.5)x | | | | | | 2.9x | | | | | | 3.6x | | | | | | 3.7x | | | | | | 3.4x | | |
Name | | | Age | | | Position | | |||
Golnar Khosrowshahi(1) | | | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue(1) | | | | | 49 | | | | President, Chief Operating Officer and Director | |
Stephen M. Cook(1) | | | | | 45 | | | | Director | |
Ezra S. Field(1) | | | | | 51 | | | | Chairman of the Board of Directors | |
Neil de Gelder(1) | | | | | 68 | | | | Director | |
Jennifer G. Koss(1) | | | | | 43 | | | | Director | |
Adam Rothstein(2) | | | | | 49 | | | | Director |
Name | | | Age | | | Position | | |||
Byron Roth | | | | | 58 | | | | Chief Executive Officer and Chairman of the ROCC Board | |
Gordon Roth | | | | | 66 | | | | Chief Financial Officer | |
Aaron Gurewitz | | | | | 52 | | | | Co-President | |
Rick Hartfiel | | | | | 57 | | | | Co-President | |
John Lipman | | | | | 44 | | | | Chief Operating Officer and Director | |
Daniel M. Friedberg | | | | | 59 | | | | Independent Director | |
Molly Montgomery | | | | | 54 | | | | Independent Director | |
Adam Rothstein | | | | | 49 | | | | Independent Director | |
Name | | | Age | | | Position | | |||
Golnar Khosrowshahi | | | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue | | | | | 49 | | | | President, Chief Operating Officer and Director | |
Stephen M. Cook | | | | | 45 | | | | Director | |
Ali Hedayat | | | | | 46 | | | | Director | |
Joel Herold | | | | | 47 | | | | Director | |
David Spivak | | | | | 53 | | | | Director | |
Ryan P. Taylor | | | | | 45 | | | | Director | |
Name and Principal Position | | Year | | Salary ($) | | Bonus ($)(1) | | Non-Equity Incentive Plan Compensation ($)(1) | | All Other Compensation ($) | | Total ($) | | | Year | | Salary ($) | | Bonus ($)(1) | | Non-Equity Incentive Plan Compensation ($)(1) | | All Other Compensation ($) | | Total ($) | | ||||||||||||||||||||||||||||||||||||||||||||||||
Golnar Khosrowshahi Chief Executive Officer | | | | 2021 | | | | | 370,000 | | | | | — | | | | | — | | | | | — | | | | | 370,000 | | | | | | 2021 | | | | | 370,000 | | | | | — | | | | | 200,000 | | | | | — | | | | | 570,000 | | | ||||||||||||
Rell Lafargue President and Chief Operating Officer | | | | 2021 | | | | | 367,889 | | | | | — | | | | | — | | | | | — | | | | | 367,889 | | | | | | 2021 | | | | | 367,889 | | | | | — | | | | | 1,408,918 | | | | | — | | | | | 1,776,807 | | |
| | | | | | Option Awards(1) | | ||||||||||||||||||
Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options Exercisable | | | Number of Securities Underlying Unexercised Options Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||
Golnar Khosrowshahi | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
Rell Lafargue | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
| | | | | | Option Awards(1) | | ||||||||||||||||||
Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options Exercisable | | | Number of Securities Underlying Unexercised Options Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||
Golnar Khosrowshahi | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
Rell Lafargue | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 81,778 | | | | | 63,239 | | | | | 18,539 | | | | | 29% | | | ||||||||||||
Costs and expenses: | | | $ | 56,184 | | | | $ | 40,310 | | | | $ | 15,874 | | | | | 39% | | | | $ | 63,239 | | | | $ | 45,127 | | | | $ | 18,112 | | | | | 40% | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Cost of revenue | | | | 23,820 | | | | | 16,793 | | | | | 7,027 | | | | | 42% | | | | | 27,305 | | | | | 18,873 | | | | | 8,432 | | | | | 45% | | | | | | 32,992 | | | | | 27,305 | | | | | 5,687 | | | | | 21% | | | ||||||||||||
Amortization and depreciation | | | | 10,447 | | | | | 5,863 | | | | | 4,584 | | | | | 78% | | | | | 8,423 | | | | | 5,863 | | | | | 2,560 | | | | | 44% | | | | | | 14,129 | | | | | 8,423 | | | | | 5,706 | | | | | 68% | | | ||||||||||||
Administration expenses | | | | 10,400 | | | | | 9,376 | | | | | 1,024 | | | | | 11% | | | �� | | | 12,033 | | | | | 7,947 | | | | | 4,085 | | | | | 51% | | | | | | 14,986 | | | | | 12,033 | | | | | 2,953 | | | | | 25% | | | |||||||||||
Total costs and expenses | | | | 44,667 | | | | | 32,032 | | | | | 12,635 | | | | | 39% | | | | | 47,761 | | | | | 32,684 | | | | | 15,078 | | | | | 46% | | | | | | 62,107 | | | | | 47,761 | | | | | 14,346 | | | | | 30% | | | ||||||||||||
Operating Income | | | | 11,517 | | | | | 8,279 | | | | | 3,239 | | | | | 39% | | | | | 15,477 | | | | | 12,443 | | | | | 3,034 | | | | | 24% | | | | | | 19,671 | | | | | 15,477 | | | | | 4,194 | | | | | 27% | | | ||||||||||||
Interest expense | | | | (6,668) | | | | | (4,521) | | | | | (2,147) | | | | | 47% | | | | | (6,463) | | | | | (6,201) | | | | | (262) | | | | | 4% | | | | | | (8,972) | | | | | (6,463) | | | | | (2,509) | | | | | 39% | | | ||||||||||||
(Loss) Gain on foreign exchange | | | | (550) | | | | | 21 | | | | | (571) | | | | | -2719% | | | | | 31 | | | | | 803 | | | | | (772) | | | | | -96% | | | | | | (911) | | | | | 31 | | | | | (942) | | | | | N/A% | | | ||||||||||||
Gain (Loss) on fair value of swaps | | | | 1,260 | | | | | (869) | | | | | 2,129 | | | | | -245% | | | | | (5,556) | | | | | (2,771) | | | | | (2,785) | | | | | 101% | | | | | | 2,988 | | | | | (5,556) | | | | | 8,544 | | | | | (154)% | | | ||||||||||||
Interest and other income | | | | 6 | | | | | 28 | | | | | (22) | | | | | -79% | | | | | 77 | | | | | 82 | | | | | (5) | | | | | -6% | | | | | | 13 | | | | | 77 | | | | | (64) | | | | | (83)% | | | ||||||||||||
Gain on retirement of RMM Issuer debt | | | | 0 | | | | | 10,644 | | | | | (10,644) | | | | | -100% | | | | | 10,644 | | | | | 0 | | | | | 10,644 | | | | | N/A% | | | | | | — | | | | | 10,644 | | | | | (10,644) | | | | | N/A% | | | ||||||||||||
Income before income taxes | | | | 5,566 | | | | | 13,582 | | | | | (8,016) | | | | | -59% | | | | | 14,210 | | | | | 4,356 | | | | | 9,854 | | | | | 226% | | | | | | 12,790 | | | | | 14,210 | | | | | (1,420) | | | | | (10)% | | | ||||||||||||
Income tax expense | | | | 1,336 | | | | | 3,108 | | | | | (1,771) | | | | | -57% | | | | | 4,199 | | | | | 819 | | | | | 3,381 | | | | | 413% | | | | | | 2,454 | | | | | 4,199 | | | | | (1,745) | | | | | (42)% | | | ||||||||||||
Net income | | | | 4,229 | | | | | 10,474 | | | | | (6,245) | | | | | -60% | | | | | 10,011 | | | | | 3,538 | | | | | 6,473 | | | | | 183% | | | | | | 10,336 | | | | | 10,011 | | | | | 325 | | | | | 3% | | | ||||||||||||
Net loss attributable to noncontrolling interests | | | | (12) | | | | | 0 | | | | | (12) | | | | | N/A% | | | | | 47 | | | | | 0 | | | | | 47 | | | | | N/A% | | | | | | (47) | | | | | 47 | | | | | (94) | | | | | N/A% | | | ||||||||||||
Net income attribuatable to Reservoir Holdings Inc. | | | $ | 4,217 | | | | $ | 10,474 | | | | $ | (6,257) | | | | | -60% | | | | $ | 10,058 | | | | $ | 3,538 | | | | $ | 6,520 | | | | | 184% | | | |||||||||||||||||||||||||||||||||
Net income attributable to Reservoir Holdings Inc. | | | | 10,289 | | | | | 10,058 | | | | | 231 | | | | | 2% | | |
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Type | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Performance | | | $ | 11,735 | | | | $ | 9,214 | | | | $ | 2,521 | | | | | 27% | | | | $ | 13,656 | | | | $ | 12,557 | | | | $ | 1,099 | | | | | 9% | | | | | $ | 16,515 | | | | $ | 13,656 | | | | $ | 2,859 | | | | | 21% | | | ||||||||||||
Digital | | | | 25,595 | | | | | 16,462 | | | | | 9,133 | | | | | 55% | | | | | 28,798 | | | | | 17,938 | | | | | 10,860 | | | | | 61% | | | | | | 35,028 | | | | | 28,798 | | | | | 6,230 | | | | | 22% | | | ||||||||||||
Mechanical | | | | 1,989 | | | | | 1,521 | | | | | 468 | | | | | 31% | | | | | 2,473 | | | | | 2,394 | | | | | 79 | | | | | 3% | | | | | | 3,050 | | | | | 2,473 | | | | | 577 | | | | | 23% | | | ||||||||||||
Synchronization | | | | 5,715 | | | | | 5,147 | | | | | 568 | | | | | 11% | | | | | 6,892 | | | | | 7,596 | | | | | (704) | | | | | -9% | | | | | | 9,891 | | | | | 6,892 | | | | | 2,999 | | | | | 44% | | | ||||||||||||
Other | | | | 1,637 | | | | | 1,333 | | | | | 304 | | | | | 23% | | | | | 2,124 | | | | | 2,356 | | | | | (232) | | | | | -10% | | | | | | 2,607 | | | | | 2,124 | | | | | 483 | | | | | 23% | | | ||||||||||||
Total Music Publishing | | | | 46,671 | | | | | 33,677 | | | | | 12,994 | | | | | 39% | | | | | 53,942 | | | | | 42,840 | | | | | 11,102 | | | | | 26% | | | | | | 67,091 | | | | | 53,942 | | | | | 13,149 | | | | | 24% | | | ||||||||||||
Digital | | | | 5,854 | | | | | 3,494 | | | | | 2,360 | | | | | 68% | | | | | 4,569 | | | | | 1,045 | | | | | 3,524 | | | | | 337% | | | | | | 7,603 | | | | | 4,569 | | | | | 3,034 | | | | | 66% | | | ||||||||||||
Physical | | | | 1,948 | | | | | 944 | | | | | 1,004 | | | | | 106% | | | | | 1,432 | | | | | 69 | | | | | 1,363 | | | | | 1975% | | | | | | 3,963 | | | | | 1,432 | | | | | 2,531 | | | | | 177% | | | ||||||||||||
Synchronization | | | | 19 | | | | | 853 | | | | | (835) | | | | | -98% | | | | | 1,385 | | | | | 174 | | | | | 1,211 | | | | | 696% | | | | | | 492 | | | | | 1,385 | | | | | (893) | | | | | (64)% | | | ||||||||||||
Neighboring rights | | | | 884 | | | | | 1,039 | | | | | (155) | | | | | -15% | | | | | 1,642 | | | | | 674 | | | | | 968 | | | | | 144% | | | | | | 1,537 | | | | | 1,642 | | | | | (105) | | | | | (6)% | | | ||||||||||||
Total Recorded Music | | | | 8,705 | | | | | 6,330 | | | | | 2,375 | | | | | 38% | | | | | 9,028 | | | | | 1,962 | | | | | 7,066 | | | | | 360% | | | | | | 13,595 | | | | | 9,028 | | | | | 4,567 | | | | | 51% | | | ||||||||||||
Other revenue | | | | 808 | | | | | 303 | | | | | 505 | | | | | 167% | | | | | 268 | | | | | 324 | | | | | 56 | | | | | -17% | | | | | | 1,092 | | | | | 268 | | | | | 824 | | | | | 307% | | | ||||||||||||
Total Revenue | | | $ | 56,184 | | | | $ | 40,310 | | | | $ | 15,874 | | | | | 39% | | | | $ | 63,239 | | | | $ | 45,127 | | | | $ | 18,112 | | | | | 40% | | | | | $ | 81,778 | | | | $ | 63,239 | | | | $ | 18,539 | | | | | 29% | | | ||||||||||||
Revenue by Geographical Location | Revenue by Geographical Location | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
U.S. Music Publishing | | | $ | 24,313 | | | | $ | 16,855 | | | | $ | 7,458 | | | | | 44% | | | | $ | 30,803 | | | | $ | 22,771 | | | | $ | 8,032 | | | | | 35% | | | | | $ | 34,683 | | | | $ | 30,803 | | | | $ | 3,880 | | | | | 13% | | | ||||||||||||
U.S. Recorded Music | | | | 2,668 | | | | | 1,873 | | | | | 795 | | | | | 42% | | | | | 3,476 | | | | | 1,277 | | | | | 2,199 | | | | | 172% | | | | | | 4,892 | | | | | 3,476 | | | | | 1,416 | | | | | 41% | | | ||||||||||||
U.S. Other Revenue | | | | 808 | | | | | 303 | | | | | 505 | | | | | 167% | | | | | 268 | | | | | 324 | | | | | (56) | | | | | -17% | | | | | | 1,092 | | | | | 268 | | | | | 824 | | | | | 307% | | | ||||||||||||
Total U.S. | | | | 27,789 | | | | | 19,031 | | | | | 8,758 | | | | | 46% | | | | | 34,547 | | | | | 24,371 | | | | | 10,176 | | | | | 42% | | | | | | 40,667 | | | | | 34,547 | | | | | 6,120 | | | | | 18% | | | ||||||||||||
International Music Publishing | | | | 22,358 | | | | | 16,823 | | | | | 5,536 | | | | | 33% | | | | | 23,139 | | | | | 20,070 | | | | | 3,069 | | | | | 15% | | | | | | 32,408 | | | | | 23,139 | | | | | 9,269 | | | | | 40% | | | ||||||||||||
International Recorded Music | | | | 6,037 | | | | | 4,457 | | | | | 1,580 | | | | | 35% | | | | | 5,553 | | | | | 686 | | | | | 4,867 | | | | | 709% | | | | | | 8,703 | | | | | 5,553 | | | | | 3,150 | | | | | 57% | | | ||||||||||||
Total International | | | | 28,395 | | | | | 21,279 | | | | | 7,116 | | | | | 33% | | | | | 28,692 | | | | | 20,756 | | | | | 7,936 | | | | | 38% | | | | | | 41,111 | | | | | 28,692 | | | | | 12,419 | | | | | 43% | | | ||||||||||||
Total Revenue | | | $ | 56,184 | | | | $ | 40,310 | | | | $ | 15,874 | | | | | 39% | | | | $ | 63,239 | | | | $ | 45,127 | | | | $ | 18,112 | | | | | 40% | | | | | $ | 81,778 | | | | $ | 63,239 | | | | $ | 18,539 | | | | | 29% | | |
| | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Writer royalties and other publishing costs | | | $ | 21,196 | | | | $ | 14,939 | | | | $ | 6,257 | | | | | 42% | | | | $ | 23,493 | | | | $ | 18,109 | | | | $ | 5,384 | | | | | 30% | | | | | $ | 29,129 | | | | $ | 23,493 | | | | $ | 5,636 | | | | | 24% | | | ||||||||||||
Artist royalties and other recorded costs | | | | 2,624 | | | | | 1,854 | | | | | 770 | | | | | 42% | | | | | 3,812 | | | | | 764 | | | | | 3,048 | | | | | 399% | | | | | | 3,863 | | | | | 3,812 | | | | | 51 | | | | | 1% | | | ||||||||||||
Total cost of revenues | | | $ | 23,820 | | | | $ | 16,793 | | | | $ | 7,027 | | | | | 42% | | | | $ | 27,305 | | | | $ | 18,873 | | | | $ | 8,433 | | | | | 45% | | | | | $ | 32,992 | | | �� | | $ | 27,305 | | | | $ | 5,687 | | | | | 21% | | |
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||
Administration expenses | | | $ | 10,400 | | | | $ | 9,376 | | | | $ | 1,024 | | | | | 11% | | | | $ | 12,033 | | | | $ | 7,947 | | | | $ | 4,085 | | | | | 51% | | | | | $ | 14,986 | | | | $ | 12,033 | | | | $ | 2,953 | | | | | 25% | | | ||||||||||||
Total administration expenses | | | $ | 10,400 | | | | $ | 9,376 | | | | $ | 1,024 | | | | | 11% | | | | $ | 12,033 | | | | $ | 7,947 | | | | $ | 4,085 | | | | | 51% | | | | | $ | 14,986 | | | | $ | 12,033 | | | | $ | 2,953 | | | | | 25% | | |
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | | | | 11,517 | | | | | 8,279 | | | | | 3,238 | | | | | 39% | | | | | 15,477 | | | | | 12,443 | | | | | 3,034 | | | | | 24% | | | | | $ | 19,671 | | | | $ | 15,477 | | | | $ | 4,194 | | | | | 27% | | | ||||||||||||
Amortization expense | | | | 10,279 | | | | | 5,744 | | | | | 4,535 | | | | | 79% | | | | | 8,250 | | | | | 5,811 | | | | | 2,439 | | | | | 42% | | | | | | 13,907 | | | | | 8,250 | | | | | 5,657 | | | | | 69% | | | ||||||||||||
Depreciation expense | | | | 169 | | | | | 119 | | | | | 50 | | | | | 42% | | | | | 173 | | | | | 52 | | | | | 121 | | | | | 233% | | | | | | 222 | | | | | 173 | | | | | 49 | | | | | 28% | | | ||||||||||||
OIBDA | | | $ | 21,964 | | | | $ | 14,142 | | | | $ | 7,823 | | | | | 55% | | | | $ | 23,901 | | | | $ | 18,306 | | | | $ | 5,594 | | | | | 31% | | | | | $ | 33,800 | | | | $ | 23,901 | | | | $ | 9,901 | | | | | 41% | | |
| | | For the Nine Months Ended December 31, | | | 2020 vs. 2019 | | | For the Fiscal Year Ended March 31, | | | 2020 vs. 2019 | | ||||||||||||||||||||||||||||||||||||
| | | 2020 | | | 2019 | | | $ Change | | | % Change | | | 2020 | | | 2019 | | | $ Change | | | % Change | | ||||||||||||||||||||||||
Music Publishing | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 46,671 | | | | | $ | 33,677 | | | | | $ | 12,994 | | | | | | 39% | | | | | $ | 53,942 | | | | | $ | 42,840 | | | | | $ | 11,102 | | | | | | 26% | | |
Operating income | | | | | 8,860 | | | | | | 5,760 | | | | | | 3,100 | | | | | | 54% | | | | | | 13,637 | | | | | | 11,547 | | | | | | 2,090 | | | | | | 18% | | |
OIBDA | | | | | 17,586 | | | | | | 10,562 | | | | | | 7,025 | | | | | | 67% | | | | | | 20,290 | | | | | | 17,110 | | | | | | 3,180 | | | | | | 19% | | |
Recorded Music | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 8,705 | | | | | | 6,330 | | | | | | 2,375 | | | | | | 38% | | | | | | 9,028 | | | | | | 1,962 | | | | | | 7,066 | | | | | | 360% | | |
Operating income | | | | | 2,554 | | | | | | 2,215 | | | | | | 338 | | | | | | 15% | | | | | | 1,709 | | | | | | 897 | | | | | | 812 | | | | | | 91% | | |
OIBDA | | | | | 4,275 | | | | | | 3,277 | | | | | | 997 | | | | | | 30% | | | | | | 3,479 | | | | | | 1,196 | | | | | | 2,283 | | | | | | 191% | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 808 | | | | | | 303 | | | | | | 505 | | | | | | 167% | | | | | | 268 | | | | | | 324 | | | | | | (56) | | | | | | -17% | | |
Operating income | | | | | 104 | | | | | | 303 | | | | | | (199) | | | | | | -66% | | | | | | 132 | | | | | | — | | | | | | 132 | | | | | | N/A% | | |
OIBDA | | | | | 104 | | | | | | 303 | | | | | | (199) | | | | | | -66% | | | | | | 132 | | | | | | — | | | | | | 132 | | | | | | N/A% | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 56,184 | | | | | | 40,310 | | | | | | 15,874 | | | | | | 39% | | | | | | 63,239 | | | | | | 45,127 | | | | | | 18,112 | | | | | | 40% | | |
Operating income | | | | | 11,517 | | | | | | 8,279 | | | | | | 3,239 | | | | | | 39% | | | | | | 15,477 | | | | | | 12,443 | | | | | | 3,034 | | | | | | 24% | | |
OIBDA | | | | | 21,964 | | | | | | 14,142 | | | | | | 7,823 | | | | | | 55% | | | | | | 23,901 | | | | | | 18,306 | | | | | | 5,594 | | | | | | 31% | | |
Name | | | Age | | | Position | | |||
Golnar Khosrowshahi | | | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue | | | | | 49 | | | | President, Chief Operating Officer and Director | |
Stephen M. Cook | | | | | 45 | | | | Director | |
Ali Hedayat | | | | | 46 | | | | Director | |
Joel Herold | | | | | 47 | | | | Director | |
David Spivak | | | | | 53 | | | | Director | |
Ryan P. Taylor | | | | | 45 | | | | Director | |
Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($)(1) | | | Non-Equity Incentive Plan Compensation ($)(1) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Golnar Khosrowshahi Chief Executive Officer | | | | | 2021 | | | | | | 370,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | 570,000 | | |
Rell Lafargue President and Chief Operating Officer | | | | | 2021 | | | | | | 367,889 | | | | | | — | | | | | | 1,408,918 | | | | | | — | | | | | | 1,776,807 | | |
| | | | | | Option Awards(1) | | ||||||||||||||||||
Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options Exercisable | | | Number of Securities Underlying Unexercised Options Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||
Golnar Khosrowshahi | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
Rell Lafargue | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 32,992 | | | | | | 27,305 | | | | | | 5,687 | | | | | | 21% | | |
Amortization and depreciation | | | | | 14,129 | | | | | | 8,423 | | | | | | 5,706 | | | | | | 68% | | |
Administration expenses | | | | | 14,986 | | | | | | 12,033 | | | | | | 2,953 | | | | | | 25% | | |
Total costs and expenses | | | | | 62,107 | | | | | | 47,761 | | | | | | 14,346 | | | | | | 30% | | |
Operating Income | | | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
Interest expense | | | | | (8,972) | | | | | | (6,463) | | | | | | (2,509) | | | | | | 39% | | |
(Loss) Gain on foreign exchange | | | | | (911) | | | | | | 31 | | | | | | (942) | | | | | | N/A% | | |
Gain (Loss) on fair value of swaps | | | | | 2,988 | | | | | | (5,556) | | | | | | 8,544 | | | | | | (154)% | | |
Interest and other income | | | | | 13 | | | | | | 77 | | | | | | (64) | | | | | | (83)% | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | 10,644 | | | | | | (10,644) | | | | | | N/A% | | |
Income before income taxes | | | | | 12,790 | | | | | | 14,210 | | | | | | (1,420) | | | | | | (10)% | | |
Income tax expense | | | | | 2,454 | | | | | | 4,199 | | | | | | (1,745) | | | | | | (42)% | | |
Net income | | | | | 10,336 | | | | | | 10,011 | | | | | | 325 | | | | | | 3% | | |
Net loss attributable to noncontrolling interests | | | | | (47) | | | | | | 47 | | | | | | (94) | | | | | | N/A% | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 10,289 | | | | | | 10,058 | | | | | | 231 | | | | | | 2% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenue by Type | | | | | | | | | | | | | | | | | | | | | | | | | |
Performance | | | | $ | 16,515 | | | | | $ | 13,656 | | | | | $ | 2,859 | | | | | | 21% | | |
Digital | | | | | 35,028 | | | | | | 28,798 | | | | | | 6,230 | | | | | | 22% | | |
Mechanical | | | | | 3,050 | | | | | | 2,473 | | | | | | 577 | | | | | | 23% | | |
Synchronization | | | | | 9,891 | | | | | | 6,892 | | | | | | 2,999 | | | | | | 44% | | |
Other | | | | | 2,607 | | | | | | 2,124 | | | | | | 483 | | | | | | 23% | | |
Total Music Publishing | | | | | 67,091 | | | | | | 53,942 | | | | | | 13,149 | | | | | | 24% | | |
Digital | | | | | 7,603 | | | | | | 4,569 | | | | | | 3,034 | | | | | | 66% | | |
Physical | | | | | 3,963 | | | | | | 1,432 | | | | | | 2,531 | | | | | | 177% | | |
Synchronization | | | | | 492 | | | | | | 1,385 | | | | | | (893) | | | | | | (64)% | | |
Neighboring rights | | | | | 1,537 | | | | | | 1,642 | | | | | | (105) | | | | | | (6)% | | |
Total Recorded Music | | | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Other revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
Revenue by Geographical Location | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Music Publishing | | | | $ | 34,683 | | | | | $ | 30,803 | | | | | $ | 3,880 | | | | | | 13% | | |
U.S. Recorded Music | | | | | 4,892 | | | | | | 3,476 | | | | | | 1,416 | | | | | | 41% | | |
U.S. Other Revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total U.S. | | | | | 40,667 | | | | | | 34,547 | | | | | | 6,120 | | | | | | 18% | | |
International Music Publishing | | | | | 32,408 | | | | | | 23,139 | | | | | | 9,269 | | | | | | 40% | | |
International Recorded Music | | | | | 8,703 | | | | | | 5,553 | | | | | | 3,150 | | | | | | 57% | | |
Total International | | | | | 41,111 | | | | | | 28,692 | | | | | | 12,419 | | | | | | 43% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
| | | For the Nine Months Ended December 31, | | | 2020 vs. 2019 | | | For the Fiscal Year Ended March 31, | | | 2020 vs. 2019 | | ||||||||||||||||||||||||||||||||||||
| | | 2020 | | | 2019 | | | $ Change | | | % Change | | | 2020 | | | 2019 | | | $ Change | | | % Change | | ||||||||||||||||||||||||
Writer royalties and other publishing costs | | | | $ | 21,196 | | | | | $ | 14,939 | | | | | $ | 6,257 | | | | | | 42% | | | | | $ | 23,493 | | | | | $ | 18,109 | | | | | $ | 5,384 | | | | | | 30% | | |
Total cost of revenues | | | | $ | 21,196 | | | | | $ | 14,939 | | | | | $ | 6,257 | | | | | | 42% | | | | | $ | 23,493 | | | | | $ | 18,109 | | | | | $ | 5,384 | | | | | | 30% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Writer royalties and other publishing costs | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Artist royalties and other recorded costs | | | | | 3,863 | | | | | | 3,812 | | | | | | 51 | | | | | | 1% | | |
Total cost of revenues | | | | $ | 32,992 | | | �� | | $ | 27,305 | | | | | $ | 5,687 | | | | | | 21% | | |
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||
Administration expenses | | | $ | 7,425 | | | | $ | 7,605 | | | | $ | (180) | | | | | -2% | | | | $ | 10,159 | | | | $ | 7,947 | | | | $ | 2,212 | | | | | 28% | | | | | $ | 14,986 | | | | $ | 12,033 | | | | $ | 2,953 | | | | | 25% | | | ||||||||||||
Total administration expenses | | | $ | 7,425 | | | | $ | 7,605 | | | | $ | (180) | | | | | -2% | | | | $ | 10,159 | | | | $ | 7,947 | | | | $ | 2,212 | | | | | 28% | | | | | $ | 14,986 | | | | $ | 12,033 | | | | $ | 2,953 | | | | | 25% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 19,671 | | | | | $ | 15,477 | | | | | $ | 4,194 | | | | | | 27% | | |
Amortization expense | | | | | 13,907 | | | | | | 8,250 | | | | | | 5,657 | | | | | | 69% | | |
Depreciation expense | | | | | 222 | | | | | | 173 | | | | | | 49 | | | | | | 28% | | |
OIBDA | | | | $ | 33,800 | | | | | $ | 23,901 | | | | | $ | 9,901 | | | | | | 41% | | |
| | | For the Nine Months Ended December 31, | | | 2020 vs. 2019 | | | For the Fiscal Year Ended March 31, | | | 2020 vs. 2019 | | ||||||||||||||||||||||||||||||||||||
| | | 2020 | | | 2019 | | | $ Change | | | % Change | | | 2020 | | | 2019 | | | $ Change | | | % Change | | ||||||||||||||||||||||||
Operating income | | | | $ | 8,860 | | | | | $ | 5,760 | | | | | $ | 3,100 | | | | | | 54% | | | | | $ | 13,637 | | | | | $ | 11,547 | | | | | $ | 2,090 | | | | | | 18% | | |
Depreciation and amortization | | | | | 8,726 | | | | | | 4,801 | | | | | | 3,925 | | | | | | 82% | | | | | | 6,653 | | | | | | 5,564 | | | | | | 1,089 | | | | | | 20% | | |
OIBDA | | | | $ | 17,586 | | | | | $ | 10,562 | | | | | $ | 7,025 | | | | | | 67% | | | | | $ | 20,290 | | | | | $ | 17,110 | | | | | $ | 3,180 | | | | | | 19% | | |
Name | | | Age | | | Position | | |||
Golnar Khosrowshahi | | | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue | | | | | 49 | | | | President, Chief Operating Officer and Director | |
Stephen M. Cook | | | | | 45 | | | | Director | |
Ali Hedayat | | | | | 46 | | | | Director | |
Joel Herold | | | | | 47 | | | | Director | |
David Spivak | | | | | 53 | | | | Director | |
Ryan P. Taylor | | | | | 45 | | | | Director | |
Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($)(1) | | | Non-Equity Incentive Plan Compensation ($)(1) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Golnar Khosrowshahi Chief Executive Officer | | | | | 2021 | | | | | | 370,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | 570,000 | | |
Rell Lafargue President and Chief Operating Officer | | | | | 2021 | | | | | | 367,889 | | | | | | — | | | | | | 1,408,918 | | | | | | — | | | | | | 1,776,807 | | |
| | | | | | Option Awards(1) | | ||||||||||||||||||
Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options Exercisable | | | Number of Securities Underlying Unexercised Options Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||
Golnar Khosrowshahi | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
Rell Lafargue | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 32,992 | | | | | | 27,305 | | | | | | 5,687 | | | | | | 21% | | |
Amortization and depreciation | | | | | 14,129 | | | | | | 8,423 | | | | | | 5,706 | | | | | | 68% | | |
Administration expenses | | | | | 14,986 | | | | | | 12,033 | | | | | | 2,953 | | | | | | 25% | | |
Total costs and expenses | | | | | 62,107 | | | | | | 47,761 | | | | | | 14,346 | | | | | | 30% | | |
Operating Income | | | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
Interest expense | | | | | (8,972) | | | | | | (6,463) | | | | | | (2,509) | | | | | | 39% | | |
(Loss) Gain on foreign exchange | | | | | (911) | | | | | | 31 | | | | | | (942) | | | | | | N/A% | | |
Gain (Loss) on fair value of swaps | | | | | 2,988 | | | | | | (5,556) | | | | | | 8,544 | | | | | | (154)% | | |
Interest and other income | | | | | 13 | | | | | | 77 | | | | | | (64) | | | | | | (83)% | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | 10,644 | | | | | | (10,644) | | | | | | N/A% | | |
Income before income taxes | | | | | 12,790 | | | | | | 14,210 | | | | | | (1,420) | | | | | | (10)% | | |
Income tax expense | | | | | 2,454 | | | | | | 4,199 | | | | | | (1,745) | | | | | | (42)% | | |
Net income | | | | | 10,336 | | | | | | 10,011 | | | | | | 325 | | | | | | 3% | | |
Net loss attributable to noncontrolling interests | | | | | (47) | | | | | | 47 | | | | | | (94) | | | | | | N/A% | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 10,289 | | | | | | 10,058 | | | | | | 231 | | | | | | 2% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenue by Type | | | | | | | | | | | | | | | | | | | | | | | | | |
Performance | | | | $ | 16,515 | | | | | $ | 13,656 | | | | | $ | 2,859 | | | | | | 21% | | |
Digital | | | | | 35,028 | | | | | | 28,798 | | | | | | 6,230 | | | | | | 22% | | |
Mechanical | | | | | 3,050 | | | | | | 2,473 | | | | | | 577 | | | | | | 23% | | |
Synchronization | | | | | 9,891 | | | | | | 6,892 | | | | | | 2,999 | | | | | | 44% | | |
Other | | | | | 2,607 | | | | | | 2,124 | | | | | | 483 | | | | | | 23% | | |
Total Music Publishing | | | | | 67,091 | | | | | | 53,942 | | | | | | 13,149 | | | | | | 24% | | |
Digital | | | | | 7,603 | | | | | | 4,569 | | | | | | 3,034 | | | | | | 66% | | |
Physical | | | | | 3,963 | | | | | | 1,432 | | | | | | 2,531 | | | | | | 177% | | |
Synchronization | | | | | 492 | | | | | | 1,385 | | | | | | (893) | | | | | | (64)% | | |
Neighboring rights | | | | | 1,537 | | | | | | 1,642 | | | | | | (105) | | | | | | (6)% | | |
Total Recorded Music | | | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Other revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
Revenue by Geographical Location | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Music Publishing | | | | $ | 34,683 | | | | | $ | 30,803 | | | | | $ | 3,880 | | | | | | 13% | | |
U.S. Recorded Music | | | | | 4,892 | | | | | | 3,476 | | | | | | 1,416 | | | | | | 41% | | |
U.S. Other Revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total U.S. | | | | | 40,667 | | | | | | 34,547 | | | | | | 6,120 | | | | | | 18% | | |
International Music Publishing | | | | | 32,408 | | | | | | 23,139 | | | | | | 9,269 | | | | | | 40% | | |
International Recorded Music | | | | | 8,703 | | | | | | 5,553 | | | | | | 3,150 | | | | | | 57% | | |
Total International | | | | | 41,111 | | | | | | 28,692 | | | | | | 12,419 | | | | | | 43% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Writer royalties and other publishing costs | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Artist royalties and other recorded costs | | | | | 3,863 | | | | | | 3,812 | | | | | | 51 | | | | | | 1% | | |
Total cost of revenues | | | | $ | 32,992 | | | �� | | $ | 27,305 | | | | | $ | 5,687 | | | | | | 21% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
Total administration expenses | | | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 19,671 | | | | | $ | 15,477 | | | | | $ | 4,194 | | | | | | 27% | | |
Amortization expense | | | | | 13,907 | | | | | | 8,250 | | | | | | 5,657 | | | | | | 69% | | |
Depreciation expense | | | | | 222 | | | | | | 173 | | | | | | 49 | | | | | | 28% | | |
OIBDA | | | | $ | 33,800 | | | | | $ | 23,901 | | | | | $ | 9,901 | | | | | | 41% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Music Publishing | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 67,091 | | | | | $ | 53,942 | | | | | $ | 13,149 | | | | | | 24% | | |
Operating income | | | | | 15,075 | | | | | | 13,637 | | | | | | 1,438 | | | | | | 11% | | |
OIBDA | | | | | 26,867 | | | | | | 20,290 | | | | | | 6,577 | | | | | | 32% | | |
Recorded Music | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Operating income | | | | | 4,334 | | | | | | 1,709 | | | | | | 2,625 | | | | | | 154% | | |
OIBDA | | | | | 6,565 | | | | | | 3,479 | | | | | | 3,086 | | | | | | 89% | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Operating income | | | | | 262 | | | | | | 132 | | | | | | 130 | | | | | | 100% | | |
OIBDA | | | | | 368 | | | | | | 132 | | | | | | 236 | | | | | | 181% | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Operating income | | | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
OIBDA | | | | | 33,800 | | | | | | 23,901 | | | | | | 9,899 | | | | | | 41% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Writer royalties and other publishing costs | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Total cost of revenues | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
Total administration expenses | | | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 15,075 | | | | | $ | 13,637 | | | | | $ | 1,438 | | | | | | 11% | | |
Depreciation and amortization | | | | | 11,792 | | | | | | 6,653 | | | | | | 5,139 | | | | | | 77% | | |
OIBDA | | | | $ | 26,867 | | | | | $ | 20,290 | | | | | $ | 6,577 | | | | | | 32% | | |
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||
Artist royalties and other recorded music costs | | | $ | 2,624 | | | | $ | 1,854 | | | | $ | 770 | | | | | 42% | | | | $ | 3,812 | | | | $ | 764 | | | | $ | 3,048 | | | | | 399% | | | | | $ | 3,863 | | | | $ | 3,812 | | | | $ | 51 | | | | | 1% | | | ||||||||||||
Total cost of revenues | | | $ | 2,624 | | | | $ | 1,854 | | | | $ | 770 | | | | | 42% | | | | $ | 3,812 | | | | $ | 764 | | | | $ | 3,048 | | | | | 399% | | | | | $ | 3,863 | | | | $ | 3,812 | | | | $ | 51 | | | | | 1% | | |
| | For the Nine Months Ended December 31, | | 2020 vs. 2019 | | For the Fiscal Year Ended March 31, | | 2020 vs. 2019 | | | | | | For the Fiscal Year Ended March 31, | | 2021 vs. 2020 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | $ Change | | % Change | | 2020 | | 2019 | | $ Change | | % Change | | | | 2021 | | 2020 | | $ Change | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Administration expenses | | | $ | 2,199 | | | | $ | 1,224 | | | | $ | 975 | | | | | 80% | | | | $ | 1,738 | | | | $ | — | | | | $ | 1,738 | | | | | N/A% | | | | | | $ | 3,167 | | | | $ | 1,738 | | | | $ | 1,429 | | | | | 82% | | | ||||||||||||||
Total administration expenses | | | $ | 2,199 | | | | $ | 1,224 | | | | $ | 975 | | | | | 80% | | | | $ | 1,738 | | | | $ | — | | | | $ | 1,738 | | | | | N/A% | | | | | | $ | 3,167 | | | | $ | 1,738 | | | | $ | 1,429 | | | | | 82% | | |
| | | For the Nine Months Ended December 31, | | | 2020 vs. 2019 | | | For the Fiscal Year Ended March 31, | | | 2020 vs. 2019 | | ||||||||||||||||||||||||||||||||||||
| | | 2020 | | | 2019 | | | $ Change | | | % Change | | | 2020 | | | 2019 | | | $ Change | | | % Change | | ||||||||||||||||||||||||
Operating income | | | | $ | 2,554 | | | | | $ | 2,215 | | | | | $ | 339 | | | | | | 15% | | | | | $ | 1,709 | | | | | $ | 897 | | | | | $ | 812 | | | | | | 91% | | |
Depreciation and amortization | | | | | 1,721 | | | | | | 1,062 | | | | | | 659 | | | | | | 62% | | | | | | 1,770 | | | | | | 300 | | | | | | 1,470 | | | | | | 490% | | |
OIBDA | | | | $ | 4,275 | | | | | $ | 3,277 | | | | | $ | 997 | | | | | | 30% | | | | | $ | 3,479 | | | | | $ | 1,196 | | | | | $ | 2,283 | | | | | | 191% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 4,334 | | | | | $ | 1,709 | | | | | $ | 2,625 | | | | | | 154% | | |
Depreciation and amortization | | | | | 2,231 | | | | | | 1,770 | | | | | | 461 | | | | | | 26% | | |
OIBDA | | | | $ | 6,565 | | | | | $ | 3,479 | | | | | $ | 3,086 | | | | | | 89% | | |
| | | For the Nine Months Ended December 31, | | | 2020 vs. 2019 | | | For the Fiscal Year Ended March 31, | | | 2020 vs. 2019 | | ||||||||||||||||||||||||||||||||||||
| | | 2020 | | | 2019 | | | $ Change | | | % Change | | | 2020 | | | 2019 | | | $ Change | | | % Change | | ||||||||||||||||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Operating activities | | | | $ | 17,332 | | | | | $ | 10,141 | | | | | $ | 7,190 | | | | | | 71% | | | | | $ | 11,882 | | | | | $ | 2,336 | | | | | $ | 9,546 | | | | | | 409% | | |
Investing activities | | | | | (107,313) | | | | | | (52,078) | | | | | | (55,235) | | | | | | 106% | | | | | | (107,806) | | | | | | (29,713) | | | | | | (78,094) | | | | | | 263% | | |
Financing activities | | | | | 38,231 | | | | | | 47,191 | | | | | | (8,961) | | | | | | -19% | | | | | | 147,030 | | | | | | 30,397 | | | | | | 116,632 | | | | | | 384% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | 16,247 | | | | | $ | 11,882 | | | | | $ | 4,365 | | | | | | 37% | | |
Investing activities | | | | | (120,147) | | | | | | (107,806) | | | | | | (12,341) | | | | | | 11% | | |
Financing activities | | | | | 47,220 | | | | | | 147,030 | | | | | | (99,810) | | | | | | -68% | | |
| Term Loan | | | $ | 18,750 | | | Term Loan | | | $ | 19,500 | | | ||
| Revolving Credit | | | | 187,991 | | | Revolving Credit | | | | 197,091 | | | ||
| Total outstanding debt | | | $ | 206,741 | | | Total outstanding debt | | | $ | 216,591 | | |
Firm Commitments and Outstanding Debt | | Less than 1 year | | 1 - 3 years | | 3 - 5 Years | | After 5 years | | Total | | | Less than 1 year | | 2 – 3 years | | 4 – 5 years | | After 5 years | | Total | | ||||||||||||||||||||||||||||||||||||||||
| | (in thousands) | | | (in thousands) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loan | | | $ | 1,000 | | | | $ | 2,000 | | | | $ | 15,750 | | | | | — | | | | $ | 18,750 | | | | | $ | 1,000 | | | | $ | 2,000 | | | | $ | 16,500 | | | | | — | | | | $ | 19,500 | | | ||||||||||
Revolving Credit | | | | — | | | | | — | | | | | 187,991 | | | | | — | | | | | 187,991 | | | | | | — | | | | | — | | | | | 197,091 | | | | | — | | | | | 197,091 | | | ||||||||||
Interest on Term Loan(1) | | | | 639 | | | | | 1,173 | | | | | 459 | | | | | — | | | | | 2,271 | | | | | | 665 | | | | | 1,225 | | | | | 289 | | | | | — | | | | | 2,179 | | | ||||||||||
Interest on Revolving Credit(1) | | | | 6,580 | | | | | 13,159 | | | | | 5,483 | | | | | — | | | | | 25,222 | | | | | | 6,898 | | | | | 13,796 | | | | | 6,898 | | | | | — | | | | | 27,593 | | | ||||||||||
Operating leases(2) | | | | 821 | | | | | 1,147 | | | | | 31 | | | | | — | | | | | 1,999 | | | | | | 818 | | | | | 835 | | | | | — | | | | | — | | | | | 1,653 | | | ||||||||||
Artist, songwriter, and co-publisher commitments(3)* | | | | 5,778 | | | | | 2,530 | | | | | 25 | | | | | — | | | | | 8,333 | | | | | | 5,733 | | | | | 796 | | | | | — | | | | | — | | | | | 6,529 | | | ||||||||||
Asset acquisition and share purchase acquisition commitments (4) | | | | 3,047 | | | | | 5,720 | | | | | — | | | | | — | | | | | 8,767 | | | | | | 5,713 | | | | | 400 | | | | | 558 | | | | | — | | | | | 6,671 | | | ||||||||||
Total firm commitments and outstanding debt | | | $ | 17,864 | | | | $ | 25,729 | | | | $ | 209,740 | | | | $ | — | | | | $ | 253,333 | | | | | $ | 20,827 | | | | $ | 19,052 | | | | $ | 221,336 | | | | $ | — | | | | $ | 261,215 | | |
Name | | | Age | | | Position | |
Golnar Khosrowshahi(1) | | | 49 | | | Chief Executive Officer and Director | |
Rell Lafargue(1) | | | 49 | | | President, Chief Operating Officer and Director | |
Jim Heindlmeyer | | | 49 | | | Chief Financial Officer | |
Stephen M. Cook(1) | | | 45 | | | Director | |
Ezra S. Field(1) | | | 51 | | | Chair of the Board of Directors | |
Neil de Gelder(1) | | | 68 | | | Director | |
Jennifer G. Koss(1) | | | 43 | | | Director | |
Adam Rothstein(2) | | | 49 | | | Director | |
Ryan P. Taylor(1) | | | 45 | | | Director | |
| | Pre-Business Combination | | Post-Business Combination | | | | Pre-Business Combination | | Post-Business Combination | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Common Stock | | Assuming No Redemptions | | Assuming 100% Redemptions | | | | Common Stock | | Assuming No Redemptions | | Assuming 100% Redemptions | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | Number of Shares Beneficially Owned | | % of Outstanding Shares of Common Stock | | Number of Shares | | % | | Number of Shares | | % | | | | Number of Shares Beneficially Owned | | % of Outstanding Shares of Common Stock | | Number of Shares | | % | | Number of Shares | | % | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Directors and Executive Officers of ROCC: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Byron Roth(2) | | | | 2,234,000 | | | | | 15.2% | | | | | 2,234,000 | | | | | % | | | | | 2,234,000 | | | | | % | | | | | | | 2,234,000 | | | | | 15.2% | | | | | 2,234,000 | | | | | 3.0% | | | | | 2,234,000 | | | | | 3.6% | | | | ||||||||||||||||
Gordon Roth(3) | | | | 2,097,063 | | | | | 14.3% | | | | | 2,097,063 | | | | | | | | | | 2,097,063 | | | | | | | | | | | | 2,097,063 | | | | | 14.3 | | | | | 2,097,063 | | | | | 2.9 | | | | | 2,097,063 | | | | | 3.3 | | | | ||||||||||||||||
Aaron Gurewitz(4) | | | | 35,425 | | | | | * | | | | | 35,425 | | | | | | | | | | 35,425 | | | | | | | | | | | | 35,425 | | | | | * | | | | | 35,425 | | | | | * | | | | | 35,425 | | | | | * | | | | ||||||||||||||||
John Lipman(5) | | | | 397,638 | | | | | 2.5% | | | | | 397,638 | | | | | | | | | | 397,638 | | | | | | | | | | | | 397,638 | | | | | 2.5 | | | | | 397,638 | | | | | * | | | | | 397,638 | | | | | * | | | | ||||||||||||||||
Rick Hartfiel(6) | | | | — | | | | | — | | | | | 15,000 | | | | | | | | | | 15,000 | | | | | | | | | | | | — | | | | | — | | | | | 15,000 | | | | | * | | | | | 15,000 | | | | | * | | | | ||||||||||||||||
Molly Montgomery(7) | | | | 88,189 | | | | | * | | | | | 88,189 | | | | | | | | | | 88,189 | | | | | | | | | | | | 88,189 | | | | | * | | | | | 88,189 | | | | | * | | | | | 88,189 | | | | | * | | | | ||||||||||||||||
David M. Friedberg(8) | | | | 88,189 | | | | | * | | | | | 88,189 | | | | | | | | | | 88,189 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Daniel M. Friedberg(8) | | | | 88,189 | | | | | * | | | | | 88,189 | | | | | * | | | | | 88,189 | | | | | * | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Adam Rothstein(9) | | | | 113,189 | | | | | * | | | | | 113,189 | | | | | | | | | | 113,189 | | | | | | | | | | | | 113,189 | | | | | * | | | | | 113,189 | | | | | * | | | | | 113,189 | | | | | * | | | | ||||||||||||||||
All Directors and Executive Officers of ROCC as a Group (8 Individuals) | | | | 3,000,441 | | | | | 20.2% | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,985,441 | | | | | 20.1 | | | | | 3,000,441 | | | | | 4.1 | | | | | 3,000,441 | | | | | 4.8 | | | | ||||||||||||||||
ROCC’s 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
CR Financial Holdings, Inc.(10) | | | | 2,068,252 | | | | | 19.1% | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,068,252 | | | | | 19.1 | | | | | 2,068,252 | | | | | 2.8 | | | | | 2,068,252 | | | | | 3.3 | | | | ||||||||||||||||
Polar Asset Management Partners Inc. (11) | | | | 750,000 | | | | | 5.1% | | | | | | | | | | | | | | | | | | | | | | | | | | | 750,000 | | | | | 5.1 | | | | | 750,000 | | | | | 1.0 | | | | | 750,000 | | | | | 1.2 | | | | ||||||||||||||||
Castle Creek Arbitrage, LLC(12) | | | | 849,501 | | | | | 5.8% | | | | | | | | | | | | | | | | | | | | | | | | | | | 849,501 | | | | | 5.8 | | | | | 849,501 | | | | | 1.2 | | | | | 849,501 | | | | | 1.4 | | | | ||||||||||||||||
683 Capital Management, LLC(13) | | | | 936,624 | | | | | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | 936,624 | | | | | 6.4 | | | | | 936,624 | | | | | 1.3 | | | | | 936,624 | | | | | 1.5 | | | | | ||||||||||||||
Directors and Executive Officers of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Golnar Khosrowshahi | | | | — | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Rell Lafargue | | | | — | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Jim Heindlmeyer | | | | — | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Stephen Cook(14) | | | | — | | | | | — | | | | | 14,639,809 | | | | | | | | | | 14,639,809 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Golnar Khosrowshahi(14) | | | | — | | | | | — | | | | | 344,509 | | | | | * | | | | | 344,509 | | | | | * | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Rell Lafargue(14) | | | | — | | | | | — | | | | | 344,509 | | | | | * | | | | | 344,509 | | | | | * | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Jim Heindlmeyer(14) | | | | — | | | | | — | | | | | 55,121 | | | | | * | | | | | 55,121 | | | | | * | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Stephen M. Cook(15) | | | | — | | | | | — | | | | | 960,699 | | | | | 1.3 | | | | | 960,699 | | | | | 1.5 | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Ezra S. Field | | | | — | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | ||||||||||||||||
Neil de Gelder | | | | — | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | ||||||||||||||||
Jennifer G. Koss | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Adam Rothstein(9) | | | | 113,189 | | | | | * | | | | | 113,189 | | | | | | | | | | 113,189 | | | | | | | | | | | | 113,189 | | | | | * | | | | | 113,189 | | | | | * | | | | | 113,189 | | | | | * | | | | ||||||||||||||||
Ryan P. Taylor(15) | | | | — | | | | | — | | | | | 14,639,809 | | | | | | | | | | 14,639,809 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Ryan P. Taylor(16) | | | | — | | | | | — | | | | | 13,268,949 | | | | | 18.1 | | | | | 13,268,949 | | | | | 21.2 | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
All Directors and Executive Officers of the Combined Company as a Group (8 Individuals) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15,086,976 | | | | | 20.6 | | | | | 15,086,976 | | | | | 24.1 | | | | ||||||||||||||||
5% Stockholders of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Wesbild Inc.(16) | | | | — | | | | | — | | | | | 27,993,961 | | | | | | | | | | 27,993,961 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
RS Reservoir LLC(17) | | | | — | | | | | — | | | | | 14,639,809 | | | | | | | | | | 14,639,809 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Wesbild Inc.(17) | | | | — | | | | | — | | | | | 27,554,085 | | | | | 37.6 | | | | | 27,554,085 | | | | | 44.0 | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
ER Reservoir LLC(18) | | | | — | | | | | — | | | | | 13,268,949 | | | | | 18.1 | | | | | 13,268,949 | | | | | 21.2 | | | |
| | | Page | | |||
Roth CH Acquisition II Co. | | | | | | | |
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| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
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Reservoir Holdings, Inc. and Subsidiaries Audited Consolidated Financial Statements | | | | | | | |
| | | | | | ||
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-43 | | | |
| | | | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | (as Revised) | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 549,040 | | | | | $ | 696,567 | | |
Prepaid expenses and other current assets | | | | | 380,555 | | | | | | 395,887 | | |
Total Current Assets | | | | | 929,595 | | | | | | 1,092,454 | | |
Cash and marketable securities held in Trust Account | | | | | 115,012,821 | | | | | | 115,006,613 | | |
TOTAL ASSETS | | | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses | | | | $ | 125,034 | | | | | $ | 83,654 | | |
Total current liabilities | | | | | 125,034 | | | | | | 83,654 | | |
Warrant liabilities | | | | | 178,750 | | | | | | 129,250 | | |
Total Liabilities | | | | | 303,784 | | | | | | 212,904 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Common stock subject to possible redemption; 11,063,863 and 11,088,616 shares at redemption value at March 31, 2021 and December 31, 2020, respectively | | | | | 110,638,630 | | | | | | 110,886,160 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,586,137 and 3,561,384 shares issued and outstanding (excluding 11,063,863 and 11,088,616 shares subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively | | | | | 359 | | | | | | 357 | | |
Additional paid-in capital | | | | | 5,370,137 | | | | | | 5,122,609 | | |
Accumulated deficit | | | | | (370,494) | | | | | | (122,963) | | |
Total Stockholders’ Equity | | | | | 5,000,002 | | | | | | 5,000,003 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Operating and formation costs | | | | $ | 204,239 | | | | | $ | 85 | | |
Loss from operations | | | | | (204,239) | | | | | | (85) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 6,208 | | | | | | — | | |
Change in fair value of warrant liabilities | | | | | (49,500) | | | | | | | | |
Other expense, net | | | | | (43,292) | | | | | | — | | |
Loss before income taxes | | | | | (247,531) | | | | | | (85) | | |
Net Loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,088,616 | | | | | | — | | |
Basic and diluted net loss per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 3,561,384 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.07) | | | | | $ | (0.00) | | |
| | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 | | | | | 3,561,384 | | | | | $ | 357 | | | | | $ | 5,122,609 | | | | | $ | (122,963) | | | | | $ | 5,000,003 | | |
Common stock subject to possible redemption | | | | | 24,753 | | | | | | 2 | | | | | | 247,528 | | | | | | — | | | | | | 247,530 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (247,531) | | | | | | (247,531) | | |
Balance – March 31, 2021 | | | | | 3,586,137 | | | | | $ | 359 | | | | | $ | 5,370,137 | | | | | $ | (370.494) | | | | | $ | 5,000,002 | | |
| | | Common Stock | | | Additional Paid in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2020 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,225) | | | | | $ | 23,775 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (85) | | | | | | (85) | | |
Balance – March 31, 2020 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,310) | | | | | $ | 23,690 | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | �� | | | |
Interest earned on marketable securities held in Trust Account | | | | | (6,208) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | — | | | | | | — | | |
Change in fair value of warrant liabilities | | | | | 49,500 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 15,332 | | | | | | — | | |
Accrued expenses | | | | | 41,380 | | | | | | (225) | | |
Net cash used in operating activities | | | | | (147,527) | | | | | | (310) | | |
Net Change in Cash | | | | | (147,527) | | | | | | (310) | | |
Cash – Beginning of period | | | | | 696,567 | | | | | | 25,000 | | |
Cash – End of period | | | | $ | 549,040 | | | | | $ | 24,690 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Change in value of common stock subject to possible redemption | | | | $ | (247,530) | | | | | $ | — | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Common stock subject to possible redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Common stock subject to possible redemption | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | $ | 5,973 | | | | | $ | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | — | | | | | | — | | |
Less: interest available to be withdrawn for payment of taxes | | | | | (5,973) | | | | | | — | | |
Net income | | | | $ | — | | | | | $ | — | | |
Denominator: Weighted Average Common stock subject to possible redemption | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,088,616 | | | | | | — | | |
Basic and diluted net income per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | — | | |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net Loss minus Net Earnings | | | | | | | | | | | | | |
Net loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Net income allocable to Common stock subject to possible redemption | | | | | — | | | | | | — | | |
Non-Redeemable Net Loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Denominator: Weighted Average Non-redeemable common stock | | | | | — | | | | | | — | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 3,561,384 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.07) | | | | | $ | (0.00) | | |
Description | | | Level | | | March 31, 2021 | | | December 31, 2020 | | |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | | 1 | | | | | $ | 115,012,821 | | | | | $ | 115,006,613 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Warrant liabilities – Private Placement Warrants | | | | | 3 | | | | | $ | 178,750 | | | | | $ | 129,250 | | |
| | | At December 31, 2020 | | | As of March 31, 2021 | | ||||||
Stock price | | | | $ | 9.54 | | | | | $ | 9.91 | | |
Strike price | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Volatility | | | | | 17.5% | | | | | | 19.1% | | |
Risk-free rate | | | | | 0.41% | | | | | | 0.94% | | |
Probability of Business Combination occurring | | | | | 75% | | | | | | 75% | | |
Dividend yield | | | | | 0.0% | | | | | | 0.0% | | |
Fair value of warrants | | | | $ | 0.94 | | | | | $ | 1.30 | | |
| | | Warrant Liabilities | | |||
Fair value as of December 31, 2020 | | | | $ | 129,250 | | |
Change in valuation inputs or other assumptions | | | | | 49,500 | | |
Fair value as of March 31, 2021 | | | | | 178,750 | | |
| | | As Previously Reported | | | Adjustments | | | As Revised | | |||||||||
Balance sheet as of December 15, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities | | | | $ | — | | | | | $ | 111,375 | | | | | $ | 111,375 | | |
Common Stock Subject to Possible Redemption | | | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Common Stock | | | | | 355 | | | | | | 1 | | | | | | 356 | | |
Additional Paid-in Capital | | | | | 5,002,148 | | | | | | 477 | | | | | | 5,002,625 | | |
Accumulated Deficit | | | | | (2,500) | | | | | | (478) | | | | | | (2,978) | | |
Balance sheet as of December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities | | | | $ | — | | | | | $ | 129,250 | | | | | $ | 129,250 | | |
Common Stock Subject to Possible Redemption | | | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Common Stock | | | | | 355 | | | | | | 2 | | | | | | 357 | | |
Additional Paid-in Capital | | | | | 5,104,258 | | | | | | 18,351 | | | | | | 5,122,609 | | |
Accumulated Deficit | | | | | (104,610) | | | | | | (18,353) | | | | | | (122,963) | | |
Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liabilities | | | | $ | — | | | | | $ | (17,875) | | | | | $ | (17,875) | | |
Initial public offering costs allocated to warrant liabilities | | | | | — | | | | | | (478) | | | | | | (478) | | |
Net loss | | | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
Cash Flow Statement for the Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Net loss | | | | $ | (103,385) | | | | | $ | (18,353) | | | | | $ | (121,738) | | |
Change in fair value of warrant liabilities | | | | | — | | | | | | 17,875 | | | | | | 17,875 | | |
Initial public offering costs allocated to warrant liabilities | | | | | — | | | | | | 478 | | | | | | 478 | | |
Initial classification of warrant liabilities | | | | | — | | | | | | 111,375 | | | | | | 111,375 | | |
Initial classification of common stock subject to possible redemption | | | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Change in value of common stock subject to possible redemption | | | | | (102,110) | | | | | | (17,875) | | | | | | (119,985) | | |
Statement of Changes in Stockholders’ Equity for the Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Sale of 275,000 private units | | | | $ | 2,750,000 | | | | | $ | (111,375) | | | | | $ | 2,638,625 | | |
Common stock Subject to Possible Redemption | | | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Net Loss | | | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
Name | | | Age | | | Position | | |||
Golnar Khosrowshahi | | | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue | | | | | 49 | | | | President, Chief Operating Officer and Director | |
Stephen M. Cook | | | | | 45 | | | | Director | |
Ali Hedayat | | | | | 46 | | | | Director | |
Joel Herold | | | | | 47 | | | | Director | |
David Spivak | | | | | 53 | | | | Director | |
Ryan P. Taylor | | | | | 45 | | | | Director | |
Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($)(1) | | | Non-Equity Incentive Plan Compensation ($)(1) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Golnar Khosrowshahi Chief Executive Officer | | | | | 2021 | | | | | | 370,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | 570,000 | | |
Rell Lafargue President and Chief Operating Officer | | | | | 2021 | | | | | | 367,889 | | | | | | — | | | | | | 1,408,918 | | | | | | — | | | | | | 1,776,807 | | |
| | | | | | Option Awards(1) | | ||||||||||||||||||
Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options Exercisable | | | Number of Securities Underlying Unexercised Options Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||
Golnar Khosrowshahi | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
Rell Lafargue | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 32,992 | | | | | | 27,305 | | | | | | 5,687 | | | | | | 21% | | |
Amortization and depreciation | | | | | 14,129 | | | | | | 8,423 | | | | | | 5,706 | | | | | | 68% | | |
Administration expenses | | | | | 14,986 | | | | | | 12,033 | | | | | | 2,953 | | | | | | 25% | | |
Total costs and expenses | | | | | 62,107 | | | | | | 47,761 | | | | | | 14,346 | | | | | | 30% | | |
Operating Income | | | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
Interest expense | | | | | (8,972) | | | | | | (6,463) | | | | | | (2,509) | | | | | | 39% | | |
(Loss) Gain on foreign exchange | | | | | (911) | | | | | | 31 | | | | | | (942) | | | | | | N/A% | | |
Gain (Loss) on fair value of swaps | | | | | 2,988 | | | | | | (5,556) | | | | | | 8,544 | | | | | | (154)% | | |
Interest and other income | | | | | 13 | | | | | | 77 | | | | | | (64) | | | | | | (83)% | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | 10,644 | | | | | | (10,644) | | | | | | N/A% | | |
Income before income taxes | | | | | 12,790 | | | | | | 14,210 | | | | | | (1,420) | | | | | | (10)% | | |
Income tax expense | | | | | 2,454 | | | | | | 4,199 | | | | | | (1,745) | | | | | | (42)% | | |
Net income | | | | | 10,336 | | | | | | 10,011 | | | | | | 325 | | | | | | 3% | | |
Net loss attributable to noncontrolling interests | | | | | (47) | | | | | | 47 | | | | | | (94) | | | | | | N/A% | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 10,289 | | | | | | 10,058 | | | | | | 231 | | | | | | 2% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenue by Type | | | | | | | | | | | | | | | | | | | | | | | | | |
Performance | | | | $ | 16,515 | | | | | $ | 13,656 | | | | | $ | 2,859 | | | | | | 21% | | |
Digital | | | | | 35,028 | | | | | | 28,798 | | | | | | 6,230 | | | | | | 22% | | |
Mechanical | | | | | 3,050 | | | | | | 2,473 | | | | | | 577 | | | | | | 23% | | |
Synchronization | | | | | 9,891 | | | | | | 6,892 | | | | | | 2,999 | | | | | | 44% | | |
Other | | | | | 2,607 | | | | | | 2,124 | | | | | | 483 | | | | | | 23% | | |
Total Music Publishing | | | | | 67,091 | | | | | | 53,942 | | | | | | 13,149 | | | | | | 24% | | |
Digital | | | | | 7,603 | | | | | | 4,569 | | | | | | 3,034 | | | | | | 66% | | |
Physical | | | | | 3,963 | | | | | | 1,432 | | | | | | 2,531 | | | | | | 177% | | |
Synchronization | | | | | 492 | | | | | | 1,385 | | | | | | (893) | | | | | | (64)% | | |
Neighboring rights | | | | | 1,537 | | | | | | 1,642 | | | | | | (105) | | | | | | (6)% | | |
Total Recorded Music | | | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Other revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
Revenue by Geographical Location | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Music Publishing | | | | $ | 34,683 | | | | | $ | 30,803 | | | | | $ | 3,880 | | | | | | 13% | | |
U.S. Recorded Music | | | | | 4,892 | | | | | | 3,476 | | | | | | 1,416 | | | | | | 41% | | |
U.S. Other Revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total U.S. | | | | | 40,667 | | | | | | 34,547 | | | | | | 6,120 | | | | | | 18% | | |
International Music Publishing | | | | | 32,408 | | | | | | 23,139 | | | | | | 9,269 | | | | | | 40% | | |
International Recorded Music | | | | | 8,703 | | | | | | 5,553 | | | | | | 3,150 | | | | | | 57% | | |
Total International | | | | | 41,111 | | | | | | 28,692 | | | | | | 12,419 | | | | | | 43% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Writer royalties and other publishing costs | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Artist royalties and other recorded costs | | | | | 3,863 | | | | | | 3,812 | | | | | | 51 | | | | | | 1% | | |
Total cost of revenues | | | | $ | 32,992 | | | �� | | $ | 27,305 | | | | | $ | 5,687 | | | | | | 21% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
Total administration expenses | | | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 19,671 | | | | | $ | 15,477 | | | | | $ | 4,194 | | | | | | 27% | | |
Amortization expense | | | | | 13,907 | | | | | | 8,250 | | | | | | 5,657 | | | | | | 69% | | |
Depreciation expense | | | | | 222 | | | | | | 173 | | | | | | 49 | | | | | | 28% | | |
OIBDA | | | | $ | 33,800 | | | | | $ | 23,901 | | | | | $ | 9,901 | | | | | | 41% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Music Publishing | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 67,091 | | | | | $ | 53,942 | | | | | $ | 13,149 | | | | | | 24% | | |
Operating income | | | | | 15,075 | | | | | | 13,637 | | | | | | 1,438 | | | | | | 11% | | |
OIBDA | | | | | 26,867 | | | | | | 20,290 | | | | | | 6,577 | | | | | | 32% | | |
Recorded Music | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Operating income | | | | | 4,334 | | | | | | 1,709 | | | | | | 2,625 | | | | | | 154% | | |
OIBDA | | | | | 6,565 | | | | | | 3,479 | | | | | | 3,086 | | | | | | 89% | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Operating income | | | | | 262 | | | | | | 132 | | | | | | 130 | | | | | | 100% | | |
OIBDA | | | | | 368 | | | | | | 132 | | | | | | 236 | | | | | | 181% | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Operating income | | | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
OIBDA | | | | | 33,800 | | | | | | 23,901 | | | | | | 9,899 | | | | | | 41% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Writer royalties and other publishing costs | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Total cost of revenues | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
Total administration expenses | | | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 15,075 | | | | | $ | 13,637 | | | | | $ | 1,438 | | | | | | 11% | | |
Depreciation and amortization | | | | | 11,792 | | | | | | 6,653 | | | | | | 5,139 | | | | | | 77% | | |
OIBDA | | | | $ | 26,867 | | | | | $ | 20,290 | | | | | $ | 6,577 | | | | | | 32% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Artist royalties and other recorded music costs | | | | $ | 3,863 | | | | | $ | 3,812 | | | | | $ | 51 | | | | | | 1% | | |
Total cost of revenues | | | | $ | 3,863 | | | | | $ | 3,812 | | | | | $ | 51 | | | | | | 1% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 3,167 | | | | | $ | 1,738 | | | | | $ | 1,429 | | | | | | 82% | | |
Total administration expenses | | | | $ | 3,167 | | | | | $ | 1,738 | | | | | $ | 1,429 | | | | | | 82% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 4,334 | | | | | $ | 1,709 | | | | | $ | 2,625 | | | | | | 154% | | |
Depreciation and amortization | | | | | 2,231 | | | | | | 1,770 | | | | | | 461 | | | | | | 26% | | |
OIBDA | | | | $ | 6,565 | | | | | $ | 3,479 | | | | | $ | 3,086 | | | | | | 89% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | 16,247 | | | | | $ | 11,882 | | | | | $ | 4,365 | | | | | | 37% | | |
Investing activities | | | | | (120,147) | | | | | | (107,806) | | | | | | (12,341) | | | | | | 11% | | |
Financing activities | | | | | 47,220 | | | | | | 147,030 | | | | | | (99,810) | | | | | | -68% | | |
| Term Loan | | | | $ | 19,500 | | |
| Revolving Credit | | | | | 197,091 | | |
| Total outstanding debt | | | | $ | 216,591 | | |
Firm Commitments and Outstanding Debt | | | Less than 1 year | | | 2 – 3 years | | | 4 – 5 years | | | After 5 years | | | Total | | |||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||
Term Loan | | | | $ | 1,000 | | | | | $ | 2,000 | | | | | $ | 16,500 | | | | | | — | | | | | $ | 19,500 | | |
Revolving Credit | | | | | — | | | | | | — | | | | | | 197,091 | | | | | | — | | | | | | 197,091 | | |
Interest on Term Loan(1) | | | | | 665 | | | | | | 1,225 | | | | | | 289 | | | | | | — | | | | | | 2,179 | | |
Interest on Revolving Credit(1) | | | | | 6,898 | | | | | | 13,796 | | | | | | 6,898 | | | | | | — | | | | | | 27,593 | | |
Operating leases(2) | | | | | 818 | | | | | | 835 | | | | | | — | | | | | | — | | | | | | 1,653 | | |
Artist, songwriter, and co-publisher commitments(3)* | | | | | 5,733 | | | | | | 796 | | | | | | — | | | | | | — | | | | | | 6,529 | | |
Asset acquisition and share purchase acquisition commitments(4) | | | | | 5,713 | | | | | | 400 | | | | | | 558 | | | | | | — | | | | | | 6,671 | | |
Total firm commitments and outstanding debt | | | | $ | 20,827 | | | | | $ | 19,052 | | | | | $ | 221,336 | | | | | $ | — | | | | | $ | 261,215 | | |
Name | | | Age | | | Position | |
Golnar Khosrowshahi(1) | | | 49 | | | Chief Executive Officer and Director | |
Rell Lafargue(1) | | | 49 | | | President, Chief Operating Officer and Director | |
Jim Heindlmeyer | | | 49 | | | Chief Financial Officer | |
Stephen M. Cook(1) | | | 45 | | | Director | |
Ezra S. Field(1) | | | 51 | | | Chair of the Board of Directors | |
Neil de Gelder(1) | | | 68 | | | Director | |
Jennifer G. Koss(1) | | | 43 | | | Director | |
Adam Rothstein(2) | | | 49 | | | Director | |
Ryan P. Taylor(1) | | | 45 | | | Director | |
| | | Pre-Business Combination | | | Post-Business Combination | | | ||||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | | |||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares | | | % | | | Number of Shares | | | % | | | ||||||||||||||||||||
Directors and Executive Officers of ROCC: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Byron Roth(2) | | | | | 2,234,000 | | | | | | 15.2% | | | | | | 2,234,000 | | | | | | 3.0% | | | | | | 2,234,000 | | | | | | 3.6% | | | | ||
Gordon Roth(3) | | | | | 2,097,063 | | | | | | 14.3 | | | | | | 2,097,063 | | | | | | 2.9 | | | | | | 2,097,063 | | | | | | 3.3 | | | | ||
Aaron Gurewitz(4) | | | | | 35,425 | | | | | | * | | | | | | 35,425 | | | | | | * | | | | | | 35,425 | | | | | | * | | | | ||
John Lipman(5) | | | | | 397,638 | | | | | | 2.5 | | | | | | 397,638 | | | | | | * | | | | | | 397,638 | | | | | | * | | | | ||
Rick Hartfiel(6) | | | | | — | | | | | | — | | | | | | 15,000 | | | | | | * | | | | | | 15,000 | | | | | | * | | | | ||
Molly Montgomery(7) | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | ||
Daniel M. Friedberg(8) | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | ||
Adam Rothstein(9) | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | ||
All Directors and Executive Officers of ROCC as a Group (8 Individuals) | | | | | 2,985,441 | | | | | | 20.1 | | | | | | 3,000,441 | | | | | | 4.1 | | | | | | 3,000,441 | | | | | | 4.8 | | | | ||
ROCC’s 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
CR Financial Holdings, Inc.(10) | | | | | 2,068,252 | | | | | | 19.1 | | | | | | 2,068,252 | | | | | | 2.8 | | | | | | 2,068,252 | | | | | | 3.3 | | | | ||
Polar Asset Management Partners Inc.(11) | | | | | 750,000 | | | | | | 5.1 | | | | | | 750,000 | | | | | | 1.0 | | | | | | 750,000 | | | | | | 1.2 | | | | ||
Castle Creek Arbitrage, LLC(12) | | | | | 849,501 | | | | | | 5.8 | | | | | | 849,501 | | | | | | 1.2 | | | | | | 849,501 | | | | | | 1.4 | | | | ||
683 Capital Management, LLC(13) | | | | | 936,624 | | | | | | 6.4 | | | | | | 936,624 | | | | | | 1.3 | | | | | | 936,624 | | | | | | 1.5 | | | | | |
Directors and Executive Officers of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Golnar Khosrowshahi(14) | | | | | — | | | | | | — | | | | | | 344,509 | | | | | | * | | | | | | 344,509 | | | | | | * | | | | ||
Rell Lafargue(14) | | | | | — | | | | | | — | | | | | | 344,509 | | | | | | * | | | | | | 344,509 | | | | | | * | | | | ||
Jim Heindlmeyer(14) | | | | | — | | | | | | — | | | | | | 55,121 | | | | | | * | | | | | | 55,121 | | | | | | * | | | | ||
Stephen M. Cook(15) | | | | | — | | | | | | — | | | | | | 960,699 | | | | | | 1.3 | | | | | | 960,699 | | | | | | 1.5 | | | | ||
Ezra S. Field | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Neil de Gelder | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Jennifer G. Koss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Adam Rothstein(9) | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | ||
Ryan P. Taylor(16) | | | | | — | | | | | | — | | | | | | 13,268,949 | | | | | | 18.1 | | | | | | 13,268,949 | | | | | | 21.2 | | | | ||
All Directors and Executive Officers of the Combined Company as a Group (8 Individuals) | | | | | | | | | | | | | | | | | 15,086,976 | | | | | | 20.6 | | | | | | 15,086,976 | | | | | | 24.1 | | | | ||
5% Stockholders of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Wesbild Inc.(17) | | | | | — | | | | | | — | | | | | | 27,554,085 | | | | | | 37.6 | | | | | | 27,554,085 | | | | | | 44.0 | | | | ||
ER Reservoir LLC(18) | | | | | — | | | | | | — | | | | | | 13,268,949 | | | | | | 18.1 | | | | | | 13,268,949 | | | | | | 21.2 | | | |
| | | Page | | |||
Roth CH Acquisition II Co. Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-21 | | | |
| | | | F-22 | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
Reservoir Holdings, Inc. and Subsidiaries Audited Consolidated Financial Statements | | | | | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-43 | | | |
| | | | F-44 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | (as Revised) | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 549,040 | | | | | $ | 696,567 | | |
Prepaid expenses and other current assets | | | | | 380,555 | | | | | | 395,887 | | |
Total Current Assets | | | | | 929,595 | | | | | | 1,092,454 | | |
Cash and marketable securities held in Trust Account | | | | | 115,012,821 | | | | | | 115,006,613 | | |
TOTAL ASSETS | | | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses | | | | $ | 125,034 | | | | | $ | 83,654 | | |
Total current liabilities | | | | | 125,034 | | | | | | 83,654 | | |
Warrant liabilities | | | | | 178,750 | | | | | | 129,250 | | |
Total Liabilities | | | | | 303,784 | | | | | | 212,904 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Common stock subject to possible redemption; 11,063,863 and 11,088,616 shares at redemption value at March 31, 2021 and December 31, 2020, respectively | | | | | 110,638,630 | | | | | | 110,886,160 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,586,137 and 3,561,384 shares issued and outstanding (excluding 11,063,863 and 11,088,616 shares subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively | | | | | 359 | | | | | | 357 | | |
Additional paid-in capital | | | | | 5,370,137 | | | | | | 5,122,609 | | |
Accumulated deficit | | | | | (370,494) | | | | | | (122,963) | | |
Total Stockholders’ Equity | | | | | 5,000,002 | | | | | | 5,000,003 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
| | | December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 696,567 | | | | | $ | 25,000 | | |
Prepaid expenses | | | | | 395,887 | | | | | | — | | |
Total Current Assets | | | | | 1,092,454 | | | | | | 25,000 | | |
Cash and marketable securities held in Trust Account | | | | | 115,006,613 | | | | | | — | | |
TOTAL ASSETS | | | | $ | 116,099,067 | | | | | $ | 25,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses | | | | $ | 83,654 | | | | | $ | 1,225 | | |
TOTAL LIABILITIES | | | | | 83,654 | | | | | | 1,225 | | |
Commitments and Contingencies (see Note 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption 11,101,541 shares at redemption value | | | | | 111,015,410 | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,548,459 and 2,875,000 shares issued and outstanding (excluding 11,101,541 shares subject to possible redemption) at December 31, 2020 and 2019, respectively | | | | | 355 | | | | | | 288 | | |
Additional paid-in capital | | | | | 5,104,258 | | | | | | 24,712 | | |
Accumulated deficit | | | | | (104,610) | | | | | | (1,225) | | |
Total Stockholders’ Equity | | | | | 5,000,003 | | | | | | 23,775 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 116,099,067 | | | | | $ | 25,000 | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Operating and formation costs | | | | $ | 204,239 | | | | | $ | 85 | | |
Loss from operations | | | | | (204,239) | | | | | | (85) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 6,208 | | | | | | — | | |
Change in fair value of warrant liabilities | | | | | (49,500) | | | | | | | | |
Other expense, net | | | | | (43,292) | | | | | | — | | |
Loss before income taxes | | | | | (247,531) | | | | | | (85) | | |
Net Loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,088,616 | | | | | | — | | |
Basic and diluted net loss per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 3,561,384 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.07) | | | | | $ | (0.00) | | |
| | | Year Ended December 31, 2020 | | | For the Period from February 13, 2019 (inception) through December 31, 2019 | | ||||||
Formation and operational costs | | | | $ | 109,998 | | | | | $ | 1,225 | | |
Loss from operations | | | | | (109,998) | | | | | | (1,225) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 5,785 | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | 828 | | | | | | — | | |
Other income | | | | | 6,613 | | | | | | — | | |
Net loss | | | | $ | (103,385) | | | | | $ | (1,225) | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,111,752 | | | | | | — | | |
Basic and diluted net loss per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | — | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 2,545,512 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.04) | | | | | $ | (0.00) | | |
| | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 | | | | | 3,561,384 | | | | | $ | 357 | | | | | $ | 5,122,609 | | | | | $ | (122,963) | | | | | $ | 5,000,003 | | |
Common stock subject to possible redemption | | | | | 24,753 | | | | | | 2 | | | | | | 247,528 | | | | | | — | | | | | | 247,530 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (247,531) | | | | | | (247,531) | | |
Balance – March 31, 2021 | | | | | 3,586,137 | | | | | $ | 359 | | | | | $ | 5,370,137 | | | | | $ | (370.494) | | | | | $ | 5,000,002 | | |
| | | Common Stock | | | Additional Paid in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2020 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,225) | | | | | $ | 23,775 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (85) | | | | | | (85) | | |
Balance – March 31, 2020 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,310) | | | | | $ | 23,690 | | |
| | | Common Stock | | | Additional Paid-in Deficit | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – February 13, 2019 (inception) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock to Sponsor | | | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | — | | | | | | 25,000 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (1,225) | | | | | | (1,225) | | |
Balance – December 31, 2019 | | | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | (1,225) | | | | | | 23,775 | | |
Sale of 11,500,000 Units, net of underwriting discount and offering expenses | | | | | 11,500,000 | | | | | | 1,150 | | | | | | 113,343,873 | | | | | | — | | | | | | 113,345,023 | | |
Sale of 275,000 Private Units | | | | | 275,000 | | | | | | 28 | | | | | | 2,749,972 | | | | | | — | | | | | | 2,750,000 | | |
Common stock subject to possible redemption | | | | | (11,101,541) | | | | | | (1,111) | | | | | | (111,014,299) | | | | | | — | | | | | | (111,015,410) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (103,385) | | | | | | (103,385) | | |
Balance – December 31, 2020 | | | | | 3,548,459 | | | | | $ | 355 | | | | | $ | 5,104,258 | | | | | $ | (104,610) | | | | | $ | 5,000,003 | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | �� | | | |
Interest earned on marketable securities held in Trust Account | | | | | (6,208) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | — | | | | | | — | | |
Change in fair value of warrant liabilities | | | | | 49,500 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 15,332 | | | | | | — | | |
Accrued expenses | | | | | 41,380 | | | | | | (225) | | |
Net cash used in operating activities | | | | | (147,527) | | | | | | (310) | | |
Net Change in Cash | | | | | (147,527) | | | | | | (310) | | |
Cash – Beginning of period | | | | | 696,567 | | | | | | 25,000 | | |
Cash – End of period | | | | $ | 549,040 | | | | | $ | 24,690 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Change in value of common stock subject to possible redemption | | | | $ | (247,530) | | | | | $ | — | | |
| | | Year Ended December 31, 2020 | | | For the Period from February 13, 2019 (inception) through December 31, 2019 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (103,385) | | | | | $ | (1,225) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | (5,785) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | (828) | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | (395,887) | | | | | | — | | |
Accrued expenses | | | | | 82,429 | | | | | | 1,225 | | |
Net cash used in operating activities | | | | | (423,456) | | | | | | — | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | (115,000,000) | | | | | | — | | |
Net cash used in investing activities | | | | | (115,000,000) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of common stock to Sponsor | | | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid | | | | | 113,850,000 | | | | | | — | | |
Proceeds from sale of Private Units | | | | | 2,750,000 | | | | | | — | | |
Proceeds from promissory note – related party | | | | | 200,000 | | | | | | — | | |
Repayment of promissory note – related party | | | | | (200,000) | | | | | | — | | |
Payment of offering costs | | | | | (504,977) | | | | | | — | | |
Net cash provided by financing activities | | | | | 116,095,023 | | | | | | 25,000 | | |
Net Change in Cash | | | | | 671,567 | | | | | | 25,000 | | |
Cash – Beginning of period | | | | �� | 25,000 | | | | | | — | | |
Cash – End of period | | | | $ | 696,567 | | | | | $ | 25,000 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption | | | | $ | 111,117,520 | | | | | $ | — | | |
Change in value of common stock subject to possible redemption | | | | $ | (102,110) | | | | | $ | — | | |
| | Year Ended December 31, 2020 | | For the Period from February 13, 2019 (inception) through December 31, 2019 | | | Three Months Ended March 31, 2021 | | Three Months Ended March 31, 2020 | | ||||||||||||||||
Common stock subject to possible redemption | | | | | | | | | | | | | | | | | | | | | | | ||||
Numerator: Earnings allocable to Common stock subject to possible redemption | | | | | | | | | | | | | | | | | | | | | | | ||||
Interest earned on marketable securities held in Trust Account | | | $ | 5,785 | | | | $ | — | | | | | $ | 5,973 | | | | $ | — | | | ||||
Unrealized gain on marketable securities held in Trust Account | | | | 828 | | | | | — | | | | | | — | | | | | — | | | ||||
Less: interest available to be withdrawn for payment of taxes | | | | (6,613) | | | | | — | | | | | | (5,973) | | | | | — | | | ||||
Net income | | | $ | — | | | | $ | — | | | | | $ | — | | | | $ | — | | | ||||
Denominator: Weighted Average Common stock subject to possible redemption | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | 11,111,752 | | | | | — | | | | | | 11,088,616 | | | | | — | | | ||||
Basic and diluted net income per share, Common stock subject to possible redemption | | | $ | 0.00 | | | | $ | — | | | | | $ | 0.00 | | | | $ | — | | | ||||
Non-Redeemable Common Stock | | | | | | | | | | | | | | | | | | | | | | | ||||
Numerator: Net Loss minus Net Earnings | | | | | | | | | | | | | | | | | | | | | | | ||||
Net loss | | | $ | (103,385) | | | | $ | (1,225) | | | | | $ | (247,531) | | | | $ | (85) | | | ||||
Net income allocable to Common stock subject to possible redemption | | | | — | | | | | — | | | | | | — | | | | | — | | | ||||
Non-Redeemable Net Loss | | | $ | (103,385) | | | | $ | (1,225) | | | | | $ | (247,531) | | | | $ | (85) | | | ||||
Denominator: Weighted Average Non-redeemable common stock | | | | | | | | | | | | | | | — | | | | | — | | | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | 2,545,512 | | | | | 2,500,000 | | | | | | 3,561,384 | | | | | 2,500,000 | | | ||||
Basic and diluted net loss per share, Non-redeemable common stock | | | $ | (0.04) | | | | $ | (0.00) | | | | | $ | (0.07) | | | | $ | (0.00) | | |
Description | | | Level | | | March 31, 2021 | | | December 31, 2020 | | |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | | 1 | | | | | $ | 115,012,821 | | | | | $ | 115,006,613 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Warrant liabilities – Private Placement Warrants | | | | | 3 | | | | | $ | 178,750 | | | | | $ | 129,250 | | |
| | | At December 31, 2020 | | | As of March 31, 2021 | | ||||||
Stock price | | | | $ | 9.54 | | | | | $ | 9.91 | | |
Strike price | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Volatility | | | | | 17.5% | | | | | | 19.1% | | |
Risk-free rate | | | | | 0.41% | | | | | | 0.94% | | |
Probability of Business Combination occurring | | | | | 75% | | | | | | 75% | | |
Dividend yield | | | | | 0.0% | | | | | | 0.0% | | |
Fair value of warrants | | | | $ | 0.94 | | | | | $ | 1.30 | | |
| | | Warrant Liabilities | | |||
Fair value as of December 31, 2020 | | | | $ | 129,250 | | |
Change in valuation inputs or other assumptions | | | | | 49,500 | | |
Fair value as of March 31, 2021 | | | | | 178,750 | | |
| | | As Previously Reported | | | Adjustments | | | As Revised | | |||||||||
Balance sheet as of December 15, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities | | | | $ | — | | | | | $ | 111,375 | | | | | $ | 111,375 | | |
Common Stock Subject to Possible Redemption | | | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Common Stock | | | | | 355 | | | | | | 1 | | | | | | 356 | | |
Additional Paid-in Capital | | | | | 5,002,148 | | | | | | 477 | | | | | | 5,002,625 | | |
Accumulated Deficit | | | | | (2,500) | | | | | | (478) | | | | | | (2,978) | | |
Balance sheet as of December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities | | | | $ | — | | | | | $ | 129,250 | | | | | $ | 129,250 | | |
Common Stock Subject to Possible Redemption | | | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Common Stock | | | | | 355 | | | | | | 2 | | | | | | 357 | | |
Additional Paid-in Capital | | | | | 5,104,258 | | | | | | 18,351 | | | | | | 5,122,609 | | |
Accumulated Deficit | | | | | (104,610) | | | | | | (18,353) | | | | | | (122,963) | | |
Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liabilities | | | | $ | — | | | | | $ | (17,875) | | | | | $ | (17,875) | | |
Initial public offering costs allocated to warrant liabilities | | | | | — | | | | | | (478) | | | | | | (478) | | |
Net loss | | | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
Cash Flow Statement for the Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Net loss | | | | $ | (103,385) | | | | | $ | (18,353) | | | | | $ | (121,738) | | |
Change in fair value of warrant liabilities | | | | | — | | | | | | 17,875 | | | | | | 17,875 | | |
Initial public offering costs allocated to warrant liabilities | | | | | — | | | | | | 478 | | | | | | 478 | | |
Initial classification of warrant liabilities | | | | | — | | | | | | 111,375 | | | | | | 111,375 | | |
Initial classification of common stock subject to possible redemption | | | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Change in value of common stock subject to possible redemption | | | | | (102,110) | | | | | | (17,875) | | | | | | (119,985) | | |
Statement of Changes in Stockholders’ Equity for the Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Sale of 275,000 private units | | | | $ | 2,750,000 | | | | | $ | (111,375) | | | | | $ | 2,638,625 | | |
Common stock Subject to Possible Redemption | | | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Net Loss | | | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward | | | | $ | 17,142 | | | | | $ | 257 | | |
Unrealized gain on marketable securities | | | | | (1,389) | | | | | | — | | |
Startup and organizational costs | | | | | 6,215 | | | | | | — | | |
Total deferred tax assets | | | | | 21,968 | | | | | | 257 | | |
Valuation Allowance | | | | | (21,968) | | | | | | (257) | | |
Deferred tax assets | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Federal | | | | | | | | | | | | | |
Current | | | | $ | — | | | | | $ | — | | |
Deferred | | | | | (21,711) | | | | | | (257) | | |
State and Local | | | | | | | | | | | | | |
Current | | | | | — | | | | | | — | | |
Deferred | | | | | — | | | | | | — | | |
Change in valuation allowance | | | | | 21,711 | | | | | | 257 | | |
Income tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Statutory federal income tax rate | | | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit | | | | | 0.0% | | | | | | 0.0% | | |
Meals and entertainment | | | | | 0.0% | | | | | | 0.0% | | |
Valuation allowance | | | | | (21.0) | | | | | | (21.0) | | |
Income tax provision | | | | | 0.0% | | | | | | 0.0% | | |
Description | | | Level | | | December 31, 2020 | | ||||||
Assets: | | | | | | | | | | | | | |
Cash and marketable securities held in Trust Account | | | | | 1 | | | | | $ | 115,006,613 | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Revenues | | | | | 56,184,190 | | | | | | 40,310,420 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenue | | | | | 23,819,732 | | | | | | 16,792,635 | | |
Amortization and depreciation | | | | | 10,447,015 | | | | | | 5,862,960 | | |
Administration expenses | | | | | 10,400,158 | | | | | | 9,376,283 | | |
Total costs and expenses | | | | | 44,666,905 | | | | | | 32,031,878 | | |
Operating income | | | | | 11,517,285 | | | | | | 8,278,542 | | |
Interest expense | | | | | (6,667,917) | | | | | | (4,520,935) | | |
(Loss) gain on foreign exchange | | | | | (549,708) | | | | | | 21,439 | | |
Gain (loss) on fair value of swaps | | | | | 1,259,738 | | | | | | (869,274) | | |
Interest and other income | | | | | 6,152 | | | | | | 27,910 | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | 10,644,084 | | |
Income before income taxes | | | | | 5,565,550 | | | | | | 13,581,766 | | |
Income tax expense | | | | | 1,336,424 | | | | | | 3,107,601 | | |
Net income | | | | | 4,229,126 | | | | | | 10,474,165 | | |
Net (income) attributable to noncontrolling interests | | | | | (12,085) | | | | | | — | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 4,217,041 | | | | | | 10,474,165 | | |
Earnings per common share (Note 13): | | | | | | | | | | | | | |
Basic | | | | $ | 18.58 | | | | | $ | 55.92 | | |
Diluted | | | | $ | 18.58 | | | | | $ | 55.92 | | |
Weighted average common shares outstanding (Note 13): | | | | | | | | | | | | | |
Basic | | | | | 144,431 | | | | | | 125,227 | | |
Diluted | | | | | 226,931 | | | | | | 187,307 | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Net income | | | | | 4,229,126 | | | | | | 10,474,165 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Translation adjustments | | | | | 5,912,547 | | | | | | (1,736,449) | | |
Total comprehensive income | | | | | 10,141,673 | | | | | | 8,737,716 | | |
Comprehensive income attributable to noncontrolling interests | | | | | (12,085) | | | | | | — | | |
Total comprehensive income attributable to Reservoir Holdings, Inc. | | | | | 10,129,588 | | | | | | 8,737,716 | | |
Name | | | Age | | | Position | | |||
Golnar Khosrowshahi | | | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue | | | | | 49 | | | | President, Chief Operating Officer and Director | |
Stephen M. Cook | | | | | 45 | | | | Director | |
Ali Hedayat | | | | | 46 | | | | Director | |
Joel Herold | | | | | 47 | | | | Director | |
David Spivak | | | | | 53 | | | | Director | |
Ryan P. Taylor | | | | | 45 | | | | Director | |
Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($)(1) | | | Non-Equity Incentive Plan Compensation ($)(1) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Golnar Khosrowshahi Chief Executive Officer | | | | | 2021 | | | | | | 370,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | 570,000 | | |
Rell Lafargue President and Chief Operating Officer | | | | | 2021 | | | | | | 367,889 | | | | | | — | | | | | | 1,408,918 | | | | | | — | | | | | | 1,776,807 | | |
| | | | | | Option Awards(1) | | ||||||||||||||||||
Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options Exercisable | | | Number of Securities Underlying Unexercised Options Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||
Golnar Khosrowshahi | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
Rell Lafargue | | | May 1, 2019 | | | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | | May 1, 2029 | |
| | | December 31, 2020 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | 12,401,568 | | | | | | 58,240,123 | | |
Accounts receivable | | | | | 12,748,995 | | | | | | 9,745,206 | | |
Amounts due from related parties (Note 11) | | | | | — | | | | | | 5,671 | | |
Current portion of royalty advances | | | | | 13,087,706 | | | | | | 13,845,419 | | |
Inventory and prepaid expenses | | | | | 896,149 | | | | | | 431,029 | | |
Total current assets | | | | | 39,134,418 | | | | | | 82,267,448 | | |
Intangible assets, net | | | | | 380,262,696 | | | | | | 285,109,108 | | |
Investment in equity affiliates | | | | | 1,517,238 | | | | | | 1,498,399 | | |
Royalty advances, net of current portion | | | | | 30,356,958 | | | | | | 26,418,020 | | |
Property, plant and equipment, net | | | | | 364,920 | | | | | | 602,976 | | |
Other assets | | | | | 644,521 | | | | | | 695,252 | | |
Total assets | | | | | 452,280,751 | | | | | | 396,591,203 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | | 2,065,272 | | | | | | 876,144 | | |
Royalties payable | | | | | 17,694,559 | | | | | | 12,169,249 | | |
Accrued payroll | | | | | 1,442,301 | | | | | | 1,532,047 | | |
Deferred revenue | | | | | 1,873,553 | | | | | | 473,022 | | |
Other current liabilities | | | | | 4,514,291 | | | | | | 7,089,780 | | |
Amounts due to related parties (Note 11) | | | | | 111,126 | | | | | | — | | |
Current portion of loans and secured notes payable | | | | | 1,000,000 | | | | | | 1,000,000 | | |
Income taxes payable | | | | | 656,014 | | | | | | 297,112 | | |
Total current liabilities | | | | | 29,357,116 | | | | | | 23,437,354 | | |
Loans and secured notes payable | | | | | 202,503,833 | | | | | | 171,785,432 | | |
Deferred income taxes | | | | | 18,151,962 | | | | | | 16,415,239 | | |
Fair value of swaps | | | | | 6,295,120 | | | | | | 7,554,859 | | |
Other liabilities | | | | | 6,689,124 | | | | | | 6,306,430 | | |
Total liabilities | | | | | 262,997,155 | | | | | | 225,499,314 | | |
Contingencies and commitments (Note 15) | | | | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.00001 par value 500,000 shares authorized; 82,500 shares issued and outstanding at December 31, 2020 and March 31, 2020 | | | | | 81,632,500 | | | | | | 81,632,500 | | |
Common stock, $0.00001 par value; 1,000,000 shares authorized, 145,560 shares issued and outstanding at December 31, 2020; 140,227 shares issued and outstanding at March 31, 2020 | | | | | 1 | | | | | | 1 | | |
Additional paid-in capital | | | | | 110,473,478 | | | | | | 102,423,444 | | |
Accumulated deficit | | | | | (5,320,424) | | | | | | (9,537,465) | | |
Accumulated other comprehensive income (loss) | | | | | 1,526,932 | | | | | | (4,385,615) | | |
Total Reservoir Holdings Inc. shareholders’ equity | | | | | 188,312,487 | | | | | | 170,132,865 | | |
Noncontrolling interest | | | | | 971,109 | | | | | | 959,024 | | |
Total shareholders’ equity | | | | | 189,283,596 | | | | | | 171,091,889 | | |
Total liabilities and shareholders’ equity | | | | | 452,280,751 | | | | | | 396,591,203 | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-In Capital | | | Accumulated deficit | | | Accumulated other comprehensive income (loss) | | | Noncontrolling interest | | | Shareholders’ equity | | |||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | $ | | | | | | | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |||||||||||||||||||||
Balance, March 31, 2019 (Note 1) | | | | | — | | | | | | — | | | | | | 125,227 | | | | | | 1 | | | | | | 104,250,000 | | | | | | (19,595,259) | | | | | | (2,403,862) | | | | | | — | | | | | | 82,250,880 | | |
Common share dividend | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,875,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,875,000) | | |
Issuance of preferred shares | | | | | 67,500 | | | | | | 66,675,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 66,675,000 | | |
Share-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 65,429 | | | | | | — | | | | | | — | | | | | | — | | | | | | 65,429 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,474,165 | | | | | | — | | | | | | — | | | | | | 10,474,165 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,736,449) | | | | | | — | | | | | | (1,736,449) | | |
Acquisition of noncontrolling interest | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 336,275 | | | | | | 336,275 | | |
Balance, December 31, 2019 | | | | | 67,500 | | | | | | 66,675,000 | | | | | | 125,227 | | | | | | 1 | | | | | | 87,440,429 | | | | | | (9,121,094) | | | | | | (4,140,311) | | | | | | 336,275 | | | | | | 141,190,300 | | |
Balance, March 31, 2020 | | | | | 82,500 | | | | | | 81,632,500 | | | | | | 140,227 | | | | | | 1 | | | | | | 102,423,444 | | | | | | (9,537,465) | | | | | | (4,385,615) | | | | | | 959,024 | | | | | | 171,091,889 | | |
Issuance of common shares | | | | | — | | | | | | — | | | | | | 5,333 | | | | | | — | | | | | | 7,973,009 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,973,009 | | |
Share-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 77,025 | | | | | | — | | | | | | — | | | | | | — | | | | | | 77,025 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,217,041 | | | | | | — | | | | | | 12,085 | | | | | | 4,229,126 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,912,547 | | | | | | — | | | | | | 5,912,547 | | |
Balance, December 31, 2020 | | | | | 82,500 | | | | | | 81,632,500 | | | | | | 145,560 | | | | | | 1 | | | | | | 110,473,478 | | | | | | (5,320,424) | | | | | | 1,526,932 | | | | | | 971,109 | | | | | | 189,283,596 | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income | | | | | 4,229,126 | | | | | | 10,474,165 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Amortization of intangible assets | | | | | 10,278,508 | | | | | | 5,744,335 | | |
Depreciation of property, plant and equipment | | | | | 168,507 | | | | | | 118,625 | | |
Share-based compensation | | | | | 77,025 | | | | | | 65,429 | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | (10,644,084) | | |
Non-cash interest charges | | | | | 577,613 | | | | | | 490,150 | | |
(Gain) loss on fair value of derivative instruments | | | | | (1,259,738) | | | | | | 869,274 | | |
Dividend from equity affiliates | | | | | — | | | | | | 55,678 | | |
Deferred income tax | | | | | 833,768 | | | | | | 3,077,256 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | (3,003,789) | | | | | | (651,725) | | |
Inventory and prepaid expenses | | | | | (465,120) | | | | | | (250,686) | | |
Royalty advances | | | | | (3,181,225) | | | | | | (2,437,765) | | |
Other assets | | | | | 240,168 | | | | | | (40,376) | | |
Accounts payable and accrued expenses | | | | | 8,477,794 | | | | | | 3,234,220 | | |
Income tax payable | | | | | 358,902 | | | | | | 36,609 | | |
Net cash provided by operating activities | | | | | 17,331,539 | | | | | | 10,141,105 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of music catalogues | | | | | (107,174,507) | | | | | | (51,248,675) | | |
Business combination and investment in equity affiliate | | | | | (18,839) | | | | | | (275,701) | | |
Decrease in deferred music composition acquisition costs | | | | | (50,731) | | | | | | (59,961) | | |
Purchase of property, plant and equipment | | | | | (69,157) | | | | | | (493,400) | | |
Net cash used for investing activities | | | | | (107,313,234) | | | | | | (52,077,737) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Common stock dividend paid | | | | | — | | | | | | (16,875,000) | | |
Issuance of preferred shares, net of issuance costs | | | | | — | | | | | | 66,675,000 | | |
Issuance of common shares, net of issuance costs | | | | | 7,973,009 | | | | | | — | | |
Repayment of secured notes | | | | | — | | | | | | (1,625,000) | | |
Proceeds from secured line of credit | | | | | 31,500,000 | | | | | | 1,355,366 | | |
Repayments of secured loans | | | | | (750,000) | | | | | | — | | |
Deferred financing costs paid | | | | | (609,212) | | | | | | (1,959,169) | | |
Repayments of related party loans | | | | | — | | | | | | (379,877) | | |
Draw on related party loans | | | | | 116,797 | | | | | | — | | |
Net cash provided by financing activities | | | | | 38,230,594 | | | | | | 47,191,320 | | |
Foreign exchange impact on cash | | | | | 5,912,546 | | | | | | (1,736,450) | | |
(Decrease) increase in cash, cash equivalents and restricted cash | | | | | (45,838,555) | | | | | | 3,518,238 | | |
Cash, cash equivalents and restricted cash beginning of period | | | | | 58,240,123 | | | | | | 9,117,074 | | |
Cash, cash equivalents and restricted cash end of period | | | | | 12,401,568 | | | | | | 12,635,312 | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 32,992 | | | | | | 27,305 | | | | | | 5,687 | | | | | | 21% | | |
Amortization and depreciation | | | | | 14,129 | | | | | | 8,423 | | | | | | 5,706 | | | | | | 68% | | |
Administration expenses | | | | | 14,986 | | | | | | 12,033 | | | | | | 2,953 | | | | | | 25% | | |
Total costs and expenses | | | | | 62,107 | | | | | | 47,761 | | | | | | 14,346 | | | | | | 30% | | |
Operating Income | | | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
Interest expense | | | | | (8,972) | | | | | | (6,463) | | | | | | (2,509) | | | | | | 39% | | |
(Loss) Gain on foreign exchange | | | | | (911) | | | | | | 31 | | | | | | (942) | | | | | | N/A% | | |
Gain (Loss) on fair value of swaps | | | | | 2,988 | | | | | | (5,556) | | | | | | 8,544 | | | | | | (154)% | | |
Interest and other income | | | | | 13 | | | | | | 77 | | | | | | (64) | | | | | | (83)% | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | 10,644 | | | | | | (10,644) | | | | | | N/A% | | |
Income before income taxes | | | | | 12,790 | | | | | | 14,210 | | | | | | (1,420) | | | | | | (10)% | | |
Income tax expense | | | | | 2,454 | | | | | | 4,199 | | | | | | (1,745) | | | | | | (42)% | | |
Net income | | | | | 10,336 | | | | | | 10,011 | | | | | | 325 | | | | | | 3% | | |
Net loss attributable to noncontrolling interests | | | | | (47) | | | | | | 47 | | | | | | (94) | | | | | | N/A% | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 10,289 | | | | | | 10,058 | | | | | | 231 | | | | | | 2% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenue by Type | | | | | | | | | | | | | | | | | | | | | | | | | |
Performance | | | | $ | 16,515 | | | | | $ | 13,656 | | | | | $ | 2,859 | | | | | | 21% | | |
Digital | | | | | 35,028 | | | | | | 28,798 | | | | | | 6,230 | | | | | | 22% | | |
Mechanical | | | | | 3,050 | | | | | | 2,473 | | | | | | 577 | | | | | | 23% | | |
Synchronization | | | | | 9,891 | | | | | | 6,892 | | | | | | 2,999 | | | | | | 44% | | |
Other | | | | | 2,607 | | | | | | 2,124 | | | | | | 483 | | | | | | 23% | | |
Total Music Publishing | | | | | 67,091 | | | | | | 53,942 | | | | | | 13,149 | | | | | | 24% | | |
Digital | | | | | 7,603 | | | | | | 4,569 | | | | | | 3,034 | | | | | | 66% | | |
Physical | | | | | 3,963 | | | | | | 1,432 | | | | | | 2,531 | | | | | | 177% | | |
Synchronization | | | | | 492 | | | | | | 1,385 | | | | | | (893) | | | | | | (64)% | | |
Neighboring rights | | | | | 1,537 | | | | | | 1,642 | | | | | | (105) | | | | | | (6)% | | |
Total Recorded Music | | | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Other revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
Revenue by Geographical Location | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Music Publishing | | | | $ | 34,683 | | | | | $ | 30,803 | | | | | $ | 3,880 | | | | | | 13% | | |
U.S. Recorded Music | | | | | 4,892 | | | | | | 3,476 | | | | | | 1,416 | | | | | | 41% | | |
U.S. Other Revenue | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total U.S. | | | | | 40,667 | | | | | | 34,547 | | | | | | 6,120 | | | | | | 18% | | |
International Music Publishing | | | | | 32,408 | | | | | | 23,139 | | | | | | 9,269 | | | | | | 40% | | |
International Recorded Music | | | | | 8,703 | | | | | | 5,553 | | | | | | 3,150 | | | | | | 57% | | |
Total International | | | | | 41,111 | | | | | | 28,692 | | | | | | 12,419 | | | | | | 43% | | |
Total Revenue | | | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Writer royalties and other publishing costs | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Artist royalties and other recorded costs | | | | | 3,863 | | | | | | 3,812 | | | | | | 51 | | | | | | 1% | | |
Total cost of revenues | | | | $ | 32,992 | | | �� | | $ | 27,305 | | | | | $ | 5,687 | | | | | | 21% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
Total administration expenses | | | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 19,671 | | | | | $ | 15,477 | | | | | $ | 4,194 | | | | | | 27% | | |
Amortization expense | | | | | 13,907 | | | | | | 8,250 | | | | | | 5,657 | | | | | | 69% | | |
Depreciation expense | | | | | 222 | | | | | | 173 | | | | | | 49 | | | | | | 28% | | |
OIBDA | | | | $ | 33,800 | | | | | $ | 23,901 | | | | | $ | 9,901 | | | | | | 41% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Music Publishing | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 67,091 | | | | | $ | 53,942 | | | | | $ | 13,149 | | | | | | 24% | | |
Operating income | | | | | 15,075 | | | | | | 13,637 | | | | | | 1,438 | | | | | | 11% | | |
OIBDA | | | | | 26,867 | | | | | | 20,290 | | | | | | 6,577 | | | | | | 32% | | |
Recorded Music | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Operating income | | | | | 4,334 | | | | | | 1,709 | | | | | | 2,625 | | | | | | 154% | | |
OIBDA | | | | | 6,565 | | | | | | 3,479 | | | | | | 3,086 | | | | | | 89% | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Operating income | | | | | 262 | | | | | | 132 | | | | | | 130 | | | | | | 100% | | |
OIBDA | | | | | 368 | | | | | | 132 | | | | | | 236 | | | | | | 181% | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Operating income | | | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
OIBDA | | | | | 33,800 | | | | | | 23,901 | | | | | | 9,899 | | | | | | 41% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Writer royalties and other publishing costs | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Total cost of revenues | | | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
Total administration expenses | | | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 15,075 | | | | | $ | 13,637 | | | | | $ | 1,438 | | | | | | 11% | | |
Depreciation and amortization | | | | | 11,792 | | | | | | 6,653 | | | | | | 5,139 | | | | | | 77% | | |
OIBDA | | | | $ | 26,867 | | | | | $ | 20,290 | | | | | $ | 6,577 | | | | | | 32% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Artist royalties and other recorded music costs | | | | $ | 3,863 | | | | | $ | 3,812 | | | | | $ | 51 | | | | | | 1% | | |
Total cost of revenues | | | | $ | 3,863 | | | | | $ | 3,812 | | | | | $ | 51 | | | | | | 1% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Administration expenses | | | | $ | 3,167 | | | | | $ | 1,738 | | | | | $ | 1,429 | | | | | | 82% | | |
Total administration expenses | | | | $ | 3,167 | | | | | $ | 1,738 | | | | | $ | 1,429 | | | | | | 82% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Operating income | | | | $ | 4,334 | | | | | $ | 1,709 | | | | | $ | 2,625 | | | | | | 154% | | |
Depreciation and amortization | | | | | 2,231 | | | | | | 1,770 | | | | | | 461 | | | | | | 26% | | |
OIBDA | | | | $ | 6,565 | | | | | $ | 3,479 | | | | | $ | 3,086 | | | | | | 89% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | 16,247 | | | | | $ | 11,882 | | | | | $ | 4,365 | | | | | | 37% | | |
Investing activities | | | | | (120,147) | | | | | | (107,806) | | | | | | (12,341) | | | | | | 11% | | |
Financing activities | | | | | 47,220 | | | | | | 147,030 | | | | | | (99,810) | | | | | | -68% | | |
| Term Loan | | | | $ | 19,500 | | |
| Revolving Credit | | | | | 197,091 | | |
| Total outstanding debt | | | | $ | 216,591 | | |
Firm Commitments and Outstanding Debt | | | Less than 1 year | | | 2 – 3 years | | | 4 – 5 years | | | After 5 years | | | Total | | |||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||
Term Loan | | | | $ | 1,000 | | | | | $ | 2,000 | | | | | $ | 16,500 | | | | | | — | | | | | $ | 19,500 | | |
Revolving Credit | | | | | — | | | | | | — | | | | | | 197,091 | | | | | | — | | | | | | 197,091 | | |
Interest on Term Loan(1) | | | | | 665 | | | | | | 1,225 | | | | | | 289 | | | | | | — | | | | | | 2,179 | | |
Interest on Revolving Credit(1) | | | | | 6,898 | | | | | | 13,796 | | | | | | 6,898 | | | | | | — | | | | | | 27,593 | | |
Operating leases(2) | | | | | 818 | | | | | | 835 | | | | | | — | | | | | | — | | | | | | 1,653 | | |
Artist, songwriter, and co-publisher commitments(3)* | | | | | 5,733 | | | | | | 796 | | | | | | — | | | | | | — | | | | | | 6,529 | | |
Asset acquisition and share purchase acquisition commitments(4) | | | | | 5,713 | | | | | | 400 | | | | | | 558 | | | | | | — | | | | | | 6,671 | | |
Total firm commitments and outstanding debt | | | | $ | 20,827 | | | | | $ | 19,052 | | | | | $ | 221,336 | | | | | $ | — | | | | | $ | 261,215 | | |
Name | | | Age | | | Position | |
Golnar Khosrowshahi(1) | | | 49 | | | Chief Executive Officer and Director | |
Rell Lafargue(1) | | | 49 | | | President, Chief Operating Officer and Director | |
Jim Heindlmeyer | | | 49 | | | Chief Financial Officer | |
Stephen M. Cook(1) | | | 45 | | | Director | |
Ezra S. Field(1) | | | 51 | | | Chair of the Board of Directors | |
Neil de Gelder(1) | | | 68 | | | Director | |
Jennifer G. Koss(1) | | | 43 | | | Director | |
Adam Rothstein(2) | | | 49 | | | Director | |
Ryan P. Taylor(1) | | | 45 | | | Director | |
| | | Pre-Business Combination | | | Post-Business Combination | | | ||||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | | |||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares | | | % | | | Number of Shares | | | % | | | ||||||||||||||||||||
Directors and Executive Officers of ROCC: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Byron Roth(2) | | | | | 2,234,000 | | | | | | 15.2% | | | | | | 2,234,000 | | | | | | 3.0% | | | | | | 2,234,000 | | | | | | 3.6% | | | | ||
Gordon Roth(3) | | | | | 2,097,063 | | | | | | 14.3 | | | | | | 2,097,063 | | | | | | 2.9 | | | | | | 2,097,063 | | | | | | 3.3 | | | | ||
Aaron Gurewitz(4) | | | | | 35,425 | | | | | | * | | | | | | 35,425 | | | | | | * | | | | | | 35,425 | | | | | | * | | | | ||
John Lipman(5) | | | | | 397,638 | | | | | | 2.5 | | | | | | 397,638 | | | | | | * | | | | | | 397,638 | | | | | | * | | | | ||
Rick Hartfiel(6) | | | | | — | | | | | | — | | | | | | 15,000 | | | | | | * | | | | | | 15,000 | | | | | | * | | | | ||
Molly Montgomery(7) | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | ||
Daniel M. Friedberg(8) | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | ||
Adam Rothstein(9) | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | ||
All Directors and Executive Officers of ROCC as a Group (8 Individuals) | | | | | 2,985,441 | | | | | | 20.1 | | | | | | 3,000,441 | | | | | | 4.1 | | | | | | 3,000,441 | | | | | | 4.8 | | | | ||
ROCC’s 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
CR Financial Holdings, Inc.(10) | | | | | 2,068,252 | | | | | | 19.1 | | | | | | 2,068,252 | | | | | | 2.8 | | | | | | 2,068,252 | | | | | | 3.3 | | | | ||
Polar Asset Management Partners Inc.(11) | | | | | 750,000 | | | | | | 5.1 | | | | | | 750,000 | | | | | | 1.0 | | | | | | 750,000 | | | | | | 1.2 | | | | ||
Castle Creek Arbitrage, LLC(12) | | | | | 849,501 | | | | | | 5.8 | | | | | | 849,501 | | | | | | 1.2 | | | | | | 849,501 | | | | | | 1.4 | | | | ||
683 Capital Management, LLC(13) | | | | | 936,624 | | | | | | 6.4 | | | | | | 936,624 | | | | | | 1.3 | | | | | | 936,624 | | | | | | 1.5 | | | | | |
Directors and Executive Officers of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Golnar Khosrowshahi(14) | | | | | — | | | | | | — | | | | | | 344,509 | | | | | | * | | | | | | 344,509 | | | | | | * | | | | ||
Rell Lafargue(14) | | | | | — | | | | | | — | | | | | | 344,509 | | | | | | * | | | | | | 344,509 | | | | | | * | | | | ||
Jim Heindlmeyer(14) | | | | | — | | | | | | — | | | | | | 55,121 | | | | | | * | | | | | | 55,121 | | | | | | * | | | | ||
Stephen M. Cook(15) | | | | | — | | | | | | — | | | | | | 960,699 | | | | | | 1.3 | | | | | | 960,699 | | | | | | 1.5 | | | | ||
Ezra S. Field | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Neil de Gelder | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Jennifer G. Koss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Adam Rothstein(9) | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | ||
Ryan P. Taylor(16) | | | | | — | | | | | | — | | | | | | 13,268,949 | | | | | | 18.1 | | | | | | 13,268,949 | | | | | | 21.2 | | | | ||
All Directors and Executive Officers of the Combined Company as a Group (8 Individuals) | | | | | | | | | | | | | | | | | 15,086,976 | | | | | | 20.6 | | | | | | 15,086,976 | | | | | | 24.1 | | | | ||
5% Stockholders of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Wesbild Inc.(17) | | | | | — | | | | | | — | | | | | | 27,554,085 | | | | | | 37.6 | | | | | | 27,554,085 | | | | | | 44.0 | | | | ||
ER Reservoir LLC(18) | | | | | — | | | | | | — | | | | | | 13,268,949 | | | | | | 18.1 | | | | | | 13,268,949 | | | | | | 21.2 | | | |
| | | Page | | |||
Roth CH Acquisition II Co. Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-21 | | | |
| | | | F-22 | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
Reservoir Holdings, Inc. and Subsidiaries Audited Consolidated Financial Statements | | | | | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-43 | | | |
| | | | F-44 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | (as Revised) | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 549,040 | | | | | $ | 696,567 | | |
Prepaid expenses and other current assets | | | | | 380,555 | | | | | | 395,887 | | |
Total Current Assets | | | | | 929,595 | | | | | | 1,092,454 | | |
Cash and marketable securities held in Trust Account | | | | | 115,012,821 | | | | | | 115,006,613 | | |
TOTAL ASSETS | | | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses | | | | $ | 125,034 | | | | | $ | 83,654 | | |
Total current liabilities | | | | | 125,034 | | | | | | 83,654 | | |
Warrant liabilities | | | | | 178,750 | | | | | | 129,250 | | |
Total Liabilities | | | | | 303,784 | | | | | | 212,904 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Common stock subject to possible redemption; 11,063,863 and 11,088,616 shares at redemption value at March 31, 2021 and December 31, 2020, respectively | | | | | 110,638,630 | | | | | | 110,886,160 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,586,137 and 3,561,384 shares issued and outstanding (excluding 11,063,863 and 11,088,616 shares subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively | | | | | 359 | | | | | | 357 | | |
Additional paid-in capital | | | | | 5,370,137 | | | | | | 5,122,609 | | |
Accumulated deficit | | | | | (370,494) | | | | | | (122,963) | | |
Total Stockholders’ Equity | | | | | 5,000,002 | | | | | | 5,000,003 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Operating and formation costs | | | | $ | 204,239 | | | | | $ | 85 | | |
Loss from operations | | | | | (204,239) | | | | | | (85) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 6,208 | | | | | | — | | |
Change in fair value of warrant liabilities | | | | | (49,500) | | | | | | | | |
Other expense, net | | | | | (43,292) | | | | | | — | | |
Loss before income taxes | | | | | (247,531) | | | | | | (85) | | |
Net Loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,088,616 | | | | | | — | | |
Basic and diluted net loss per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 3,561,384 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.07) | | | | | $ | (0.00) | | |
| | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 | | | | | 3,561,384 | | | | | $ | 357 | | | | | $ | 5,122,609 | | | | | $ | (122,963) | | | | | $ | 5,000,003 | | |
Common stock subject to possible redemption | | | | | 24,753 | | | | | | 2 | | | | | | 247,528 | | | | | | — | | | | | | 247,530 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (247,531) | | | | | | (247,531) | | |
Balance – March 31, 2021 | | | | | 3,586,137 | | | | | $ | 359 | | | | | $ | 5,370,137 | | | | | $ | (370.494) | | | | | $ | 5,000,002 | | |
| | | Common Stock | | | Additional Paid in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2020 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,225) | | | | | $ | 23,775 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (85) | | | | | | (85) | | |
Balance – March 31, 2020 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,310) | | | | | $ | 23,690 | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | �� | | | |
Interest earned on marketable securities held in Trust Account | | | | | (6,208) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | — | | | | | | — | | |
Change in fair value of warrant liabilities | | | | | 49,500 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 15,332 | | | | | | — | | |
Accrued expenses | | | | | 41,380 | | | | | | (225) | | |
Net cash used in operating activities | | | | | (147,527) | | | | | | (310) | | |
Net Change in Cash | | | | | (147,527) | | | | | | (310) | | |
Cash – Beginning of period | | | | | 696,567 | | | | | | 25,000 | | |
Cash – End of period | | | | $ | 549,040 | | | | | $ | 24,690 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Change in value of common stock subject to possible redemption | | | | $ | (247,530) | | | | | $ | — | | |
| | | Three Months Ended March 31, 2021 | | | Three Months Ended March 31, 2020 | | ||||||
Common stock subject to possible redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Common stock subject to possible redemption | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | $ | 5,973 | | | | | $ | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | — | | | | | | — | | |
Less: interest available to be withdrawn for payment of taxes | | | | | (5,973) | | | | | | — | | |
Net income | | | | $ | — | | | | | $ | — | | |
Denominator: Weighted Average Common stock subject to possible redemption | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,088,616 | | | | | | — | | |
Basic and diluted net income per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | — | | |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net Loss minus Net Earnings | | | | | | | | | | | | | |
Net loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Net income allocable to Common stock subject to possible redemption | | | | | — | | | | | | — | | |
Non-Redeemable Net Loss | | | | $ | (247,531) | | | | | $ | (85) | | |
Denominator: Weighted Average Non-redeemable common stock | | | | | — | | | | | | — | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 3,561,384 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.07) | | | | | $ | (0.00) | | |
Description | | | Level | | | March 31, 2021 | | | December 31, 2020 | | |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | | 1 | | | | | $ | 115,012,821 | | | | | $ | 115,006,613 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Warrant liabilities – Private Placement Warrants | | | | | 3 | | | | | $ | 178,750 | | | | | $ | 129,250 | | |
| | | At December 31, 2020 | | | As of March 31, 2021 | | ||||||
Stock price | | | | $ | 9.54 | | | | | $ | 9.91 | | |
Strike price | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Volatility | | | | | 17.5% | | | | | | 19.1% | | |
Risk-free rate | | | | | 0.41% | | | | | | 0.94% | | |
Probability of Business Combination occurring | | | | | 75% | | | | | | 75% | | |
Dividend yield | | | | | 0.0% | | | | | | 0.0% | | |
Fair value of warrants | | | | $ | 0.94 | | | | | $ | 1.30 | | |
| | | Warrant Liabilities | | |||
Fair value as of December 31, 2020 | | | | $ | 129,250 | | |
Change in valuation inputs or other assumptions | | | | | 49,500 | | |
Fair value as of March 31, 2021 | | | | | 178,750 | | |
| | | As Previously Reported | | | Adjustments | | | As Revised | | |||||||||
Balance sheet as of December 15, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities | | | | $ | — | | | | | $ | 111,375 | | | | | $ | 111,375 | | |
Common Stock Subject to Possible Redemption | | | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Common Stock | | | | | 355 | | | | | | 1 | | | | | | 356 | | |
Additional Paid-in Capital | | | | | 5,002,148 | | | | | | 477 | | | | | | 5,002,625 | | |
Accumulated Deficit | | | | | (2,500) | | | | | | (478) | | | | | | (2,978) | | |
Balance sheet as of December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities | | | | $ | — | | | | | $ | 129,250 | | | | | $ | 129,250 | | |
Common Stock Subject to Possible Redemption | | | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Common Stock | | | | | 355 | | | | | | 2 | | | | | | 357 | | |
Additional Paid-in Capital | | | | | 5,104,258 | | | | | | 18,351 | | | | | | 5,122,609 | | |
Accumulated Deficit | | | | | (104,610) | | | | | | (18,353) | | | | | | (122,963) | | |
Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liabilities | | | | $ | — | | | | | $ | (17,875) | | | | | $ | (17,875) | | |
Initial public offering costs allocated to warrant liabilities | | | | | — | | | | | | (478) | | | | | | (478) | | |
Net loss | | | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
Cash Flow Statement for the Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Net loss | | | | $ | (103,385) | | | | | $ | (18,353) | | | | | $ | (121,738) | | |
Change in fair value of warrant liabilities | | | | | — | | | | | | 17,875 | | | | | | 17,875 | | |
Initial public offering costs allocated to warrant liabilities | | | | | — | | | | | | 478 | | | | | | 478 | | |
Initial classification of warrant liabilities | | | | | — | | | | | | 111,375 | | | | | | 111,375 | | |
Initial classification of common stock subject to possible redemption | | | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Change in value of common stock subject to possible redemption | | | | | (102,110) | | | | | | (17,875) | | | | | | (119,985) | | |
Statement of Changes in Stockholders’ Equity for the Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Sale of 275,000 private units | | | | $ | 2,750,000 | | | | | $ | (111,375) | | | | | $ | 2,638,625 | | |
Common stock Subject to Possible Redemption | | | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Net Loss | | | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
| | | December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 696,567 | | | | | $ | 25,000 | | |
Prepaid expenses | | | | | 395,887 | | | | | | — | | |
Total Current Assets | | | | | 1,092,454 | | | | | | 25,000 | | |
Cash and marketable securities held in Trust Account | | | | | 115,006,613 | | | | | | — | | |
TOTAL ASSETS | | | | $ | 116,099,067 | | | | | $ | 25,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses | | | | $ | 83,654 | | | | | $ | 1,225 | | |
TOTAL LIABILITIES | | | | | 83,654 | | | | | | 1,225 | | |
Commitments and Contingencies (see Note 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption 11,101,541 shares at redemption value | | | | | 111,015,410 | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,548,459 and 2,875,000 shares issued and outstanding (excluding 11,101,541 shares subject to possible redemption) at December 31, 2020 and 2019, respectively | | | | | 355 | | | | | | 288 | | |
Additional paid-in capital | | | | | 5,104,258 | | | | | | 24,712 | | |
Accumulated deficit | | | | | (104,610) | | | | | | (1,225) | | |
Total Stockholders’ Equity | | | | | 5,000,003 | | | | | | 23,775 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 116,099,067 | | | | | $ | 25,000 | | |
| | | Year Ended December 31, 2020 | | | For the Period from February 13, 2019 (inception) through December 31, 2019 | | ||||||
Formation and operational costs | | | | $ | 109,998 | | | | | $ | 1,225 | | |
Loss from operations | | | | | (109,998) | | | | | | (1,225) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 5,785 | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | 828 | | | | | | — | | |
Other income | | | | | 6,613 | | | | | | — | | |
Net loss | | | | $ | (103,385) | | | | | $ | (1,225) | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,111,752 | | | | | | — | | |
Basic and diluted net loss per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | — | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 2,545,512 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.04) | | | | | $ | (0.00) | | |
| | | Common Stock | | | Additional Paid-in Deficit | | | Accumulated Deficit | | | Total Stockholders’ Equity | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – February 13, 2019 (inception) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock to Sponsor | | | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | — | | | | | | 25,000 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (1,225) | | | | | | (1,225) | | |
Balance – December 31, 2019 | | | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | (1,225) | | | | | | 23,775 | | |
Sale of 11,500,000 Units, net of underwriting discount and offering expenses | | | | | 11,500,000 | | | | | | 1,150 | | | | | | 113,343,873 | | | | | | — | | | | | | 113,345,023 | | |
Sale of 275,000 Private Units | | | | | 275,000 | | | | | | 28 | | | | | | 2,749,972 | | | | | | — | | | | | | 2,750,000 | | |
Common stock subject to possible redemption | | | | | (11,101,541) | | | | | | (1,111) | | | | | | (111,014,299) | | | | | | — | | | | | | (111,015,410) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (103,385) | | | | | | (103,385) | | |
Balance – December 31, 2020 | | | | | 3,548,459 | | | | | $ | 355 | | | | | $ | 5,104,258 | | | | | $ | (104,610) | | | | | $ | 5,000,003 | | |
| | | Year Ended December 31, 2020 | | | For the Period from February 13, 2019 (inception) through December 31, 2019 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (103,385) | | | | | $ | (1,225) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | (5,785) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | (828) | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | (395,887) | | | | | | — | | |
Accrued expenses | | | | | 82,429 | | | | | | 1,225 | | |
Net cash used in operating activities | | | | | (423,456) | | | | | | — | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | (115,000,000) | | | | | | — | | |
Net cash used in investing activities | | | | | (115,000,000) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of common stock to Sponsor | | | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid | | | | | 113,850,000 | | | | | | — | | |
Proceeds from sale of Private Units | | | | | 2,750,000 | | | | | | — | | |
Proceeds from promissory note – related party | | | | | 200,000 | | | | | | — | | |
Repayment of promissory note – related party | | | | | (200,000) | | | | | | — | | |
Payment of offering costs | | | | | (504,977) | | | | | | — | | |
Net cash provided by financing activities | | | | | 116,095,023 | | | | | | 25,000 | | |
Net Change in Cash | | | | | 671,567 | | | | | | 25,000 | | |
Cash – Beginning of period | | | | | 25,000 | | | | | | — | | |
Cash – End of period | | | | $ | 696,567 | | | | | $ | 25,000 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption | | | | $ | 111,117,520 | | | | | $ | — | | |
Change in value of common stock subject to possible redemption | | | | $ | (102,110) | | | | | $ | — | | |
| | | Year Ended December 31, 2020 | | | For the Period from February 13, 2019 (inception) through December 31, 2019 | | ||||||
Common stock subject to possible redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Common stock subject to possible redemption | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | $ | 5,785 | | | | | $ | — | | |
Unrealized gain on marketable securities held in Trust Account | | | | | 828 | | | | | | — | | |
Less: interest available to be withdrawn for payment of taxes | | | | | (6,613) | | | | | | — | | |
Net income | | | | $ | — | | | | | $ | — | | |
Denominator: Weighted Average Common stock subject to possible redemption | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | | | | | 11,111,752 | | | | | | — | | |
Basic and diluted net income per share, Common stock subject to possible redemption | | | | $ | 0.00 | | | | | $ | — | | |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net Loss minus Net Earnings | | | | | | | | | | | | | |
Net loss | | | | $ | (103,385) | | | | | $ | (1,225) | | |
Net income allocable to Common stock subject to possible redemption | | | | | — | | | | | | — | | |
Non-Redeemable Net Loss | | | | $ | (103,385) | | | | | $ | (1,225) | | |
Denominator: Weighted Average Non-redeemable common stock | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | | | | | 2,545,512 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock | | | | $ | (0.04) | | | | | $ | (0.00) | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward | | | | $ | 17,142 | | | | | $ | 257 | | |
Unrealized gain on marketable securities | | | | | (1,389) | | | | | | — | | |
Startup and organizational costs | | | | | 6,215 | | | | | | — | | |
Total deferred tax assets | | | | | 21,968 | | | | | | 257 | | |
Valuation Allowance | | | | | (21,968) | | | | | | (257) | | |
Deferred tax assets | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Federal | | | | | | | | | | | | | |
Current | | | | $ | — | | | | | $ | — | | |
Deferred | | | | | (21,711) | | | | | | (257) | | |
State and Local | | | | | | | | | | | | | |
Current | | | | | — | | | | | | — | | |
Deferred | | | | | — | | | | | | — | | |
Change in valuation allowance | | | | | 21,711 | | | | | | 257 | | |
Income tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Statutory federal income tax rate | | | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit | | | | | 0.0% | | | | | | 0.0% | | |
Meals and entertainment | | | | | 0.0% | | | | | | 0.0% | | |
Valuation allowance | | | | | (21.0) | | | | | | (21.0) | | |
Income tax provision | | | | | 0.0% | | | | | | 0.0% | | |
Description | | | Level | | | December 31, 2020 | | ||||||
Assets: | | | | | | | | | | | | | |
Cash and marketable securities held in Trust Account | | | | | 1 | | | | | $ | 115,006,613 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Revenues | | | | | 81,777,789 | | | | | | 63,238,672 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenue | | | | | 32,991,979 | | | | | | 27,305,489 | | |
Amortization and depreciation | | | | | 14,128,604 | | | | | | 8,423,197 | | |
Administration expenses | | | | | 14,986,085 | | | | | | 12,032,673 | | |
Total costs and expenses | | | | | 62,106,668 | | | | | | 47,761,359 | | |
Operating income | | | | | 19,671,121 | | | | | | 15,477,313 | | |
Interest expense | | | | | (8,972,100) | | | | | | (6,463,381) | | |
(Loss) gain on foreign exchange | | | | | (910,799) | | | | | | 30,700 | | |
Gain (loss) on fair value of swaps | | | | | 2,988,322 | | | | | | (5,555,702) | | |
Interest and other income | | | | | 13,243 | | | | | | 76,894 | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | 10,644,084 | | |
Income before income taxes | | | | | 12,789,787 | | | | | | 14,209,908 | | |
Income tax expense | | | | | 2,454,153 | | | | | | 4,199,141 | | |
Net income | | | | | 10,335,634 | | | | | | 10,010,767 | | |
Net (income) loss attributable to noncontrolling interests | | | | | (46,673) | | | | | | 47,027 | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 10,288,961 | | | | | | 10,057,794 | | |
Earnings per common share (Note 14): | | | | | | | | | | | | | |
Basic | | | | $ | 45.29 | | | | | $ | 51.38 | | |
Diluted | | | | $ | 45.29 | | | | | $ | 51.38 | | |
Weighted average common shares outstanding (Note 14): | | | | | | | | | | | | | |
Basic | | | | | 144,698 | | | | | | 128,875 | | |
Diluted | | | | | 227,198 | | | | | | 195,740 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Net income | | | | | 10,335,634 | | | | | | 10,010,767 | | |
Other comprehensive loss: | | | | | | | | | | | | | |
Translation adjustments | | | | | 6,481,973 | | | | | | (1,981,753) | | |
Total comprehensive income | | | | | 16,817,607 | | | | | | 8,029,014 | | |
Comprehensive (income) loss attributable to noncontrolling interests | | | | | (46,673) | | | | | | 47,027 | | |
Total comprehensive income attributable to Reservoir Holdings, Inc. | | | | | 16,770,934 | | | | | | 8,076,041 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | 9,209,920 | | | | | | 58,240,123 | | |
Accounts receivable | | | | | 15,813,384 | | | | | | 9,745,206 | | |
Amounts due from related parties (Note 11) | | | | | — | | | | | | 5,671 | | |
Current portion of royalty advances | | | | | 12,840,855 | | | | | | 13,845,419 | | |
Inventory and prepaid expenses | | | | | 1,406,379 | | | | | | 431,029 | | |
Total current assets | | | | | 39,270,538 | | | | | | 82,267,448 | | |
Intangible assets, net | | | | | 393,238,010 | | | | | | 285,109,108 | | |
Investment in equity affiliates | | | | | 1,591,179 | | | | | | 1,498,399 | | |
Royalty advances, net of current portion | | | | | 28,741,225 | | | | | | 26,418,020 | | |
Property, plant and equipment, net | | | | | 321,766 | | | | | | 602,976 | | |
Other assets | | | | | 781,735 | | | | | | 695,252 | | |
Total assets | | | | | 463,944,453 | | | | | | 396,591,203 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | | 3,316,768 | | | | | | 876,144 | | |
Royalties payable | | | | | 14,656,566 | | | | | | 12,169,249 | | |
Accrued payroll | | | | | 1,634,852 | | | | | | 1,532,047 | | |
Deferred revenue | | | | | 1,337,987 | | | | | | 473,022 | | |
Other current liabilities | | | | | 2,615,488 | | | | | | 7,089,780 | | |
Amounts due to related parties (Note 11) | | | | | 290,172 | | | | | | — | | |
Current portion of loans and secured notes payable | | | | | 1,000,000 | | | | | | 1,000,000 | | |
Income taxes payable | | | | | 533,495 | | | | | | 297,112 | | |
Total current liabilities | | | | | 25,385,328 | | | | | | 23,437,354 | | |
Loans and secured notes payable | | | | | 211,531,875 | | | | | | 171,785,432 | | |
Deferred income taxes | | | | | 19,735,537 | | | | | | 16,415,239 | | |
Fair value of swaps | | | | | 4,566,537 | | | | | | 7,554,859 | | |
Other liabilities | | | | | 6,739,971 | | | | | | 6,306,430 | | |
Total liabilities | | | | | 267,959,248 | | | | | | 225,499,314 | | |
Contingencies and commitments (Note 16) | | | | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.00001 par value 500,000 shares authorized; 82,500 shares issued and outstanding at March 31, 2021 and 2020 | | | | | 81,632,500 | | | | | | 81,632,500 | | |
Common stock, $0.00001 par value; 1,000,000 shares authorized, 145,560 shares issued and outstanding at March 31, 2021; and 140,227 shares issued and outstanding at March 31, 2020 | | | | | 1 | | | | | | 1 | | |
Additional paid-in capital | | | | | 110,499,153 | | | | | | 102,423,444 | | |
Retained earnings (accumulated deficit) | | | | | 751,496 | | | | | | (9,537,465) | | |
Accumulated other comprehensive income (loss) | | | | | 2,096,358 | | | | | | (4,385,615) | | |
Total Reservoir Holdings Inc. shareholders’ equity | | | | | 194,979,508 | | | | | | 170,132,865 | | |
Noncontrolling interest | | | | | 1,005,697 | | | | | | 959,024 | | |
Total shareholders’ equity | | | | | 195,985,205 | | | | | | 171,091,889 | | |
Total liabilities and shareholders’ equity | | | | | 463,944,453 | | | | | | 396,591,203 | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-In Capital | | | Retained earnings (Accumulated deficit) | | | Accumulated other comprehensive income (loss) | | | Noncontrolling interest | | | Shareholders’ equity | | |||||||||||||||||||||||||||||||||
| Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | $ | | | | | | | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |||||||||||||||||||||||
Balance, March 31, 2019 | | | | | — | | | | | | — | | | | | | 125,227 | | | | | | 1 | | | | | | 104,250,000 | | | | | | (19,595,259) | | | | | | (2,403,862) | | | | | | — | | | | | | 82,250,880 | | |
Common share dividend | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,875,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,875,000) | | |
Issuance of preferred shares | | | | | 82,500 | | | | | | 81,632,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 81,632,500 | | |
Issuance of common shares | | | | | — | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 14,957,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,957,500 | | |
Share-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,944 | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,944 | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,057,794 | | | | | | — | | | | | | (47,027) | | | | | | 10,010,767 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,981,753) | | | | | | — | | | | | | (1,981,753) | | |
Acquisition of noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,006,051 | | | | | | 1,006,051 | | |
Balance, March 31, 2020 | | | | | 82,500 | | | | | | 81,632,500 | | | | | | 140,227 | | | | | | 1 | | | | | | 102,423,444 | | | | | | (9,537,465) | | | | | | (4,385,615) | | | | | | 959,024 | | | | | | 171,091,889 | | |
Issuance of common shares | | | | | — | | | | | | — | | | | | | 5,333 | | | | | | — | | | | | | 7,973,009 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,973,009 | | |
Share-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 102,700 | | | | | | — | | | | | | — | | | | | | — | | | | | | 102,700 | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,288,961 | | | | | | — | | | | | | 46,673 | | | | | | 10,335,634 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,481,973 | | | | | | — | | | | | | 6,481,973 | | |
Balance, March 31, 2021 | | | | | 82,500 | | | | | | 81,632,500 | | | | | | 145,560 | | | | | | 1 | | | | | | 110,499,153 | | | | | | 751,496 | | | | | | 2,096,358 | | | | | | 1,005,697 | | | | | | 195,985,205 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income | | | | | 10,335,634 | | | | | | 10,010,767 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Amortization of intangible assets | | | | | 13,906,199 | | | | | | 8,250,305 | | |
Depreciation of property, plant and equipment | | | | | 222,405 | | | | | | 172,892 | | |
Share-based compensation | | | | | 102,700 | | | | | | 90,944 | | |
Gain on retirement of RMM Issuer debt | | | | | — | | | | | | (10,644,084) | | |
Non-cash interest charges | | | | | 795,212 | | | | | | 674,331 | | |
(Gain) loss on fair value of derivative instruments | | | | | (2,988,322) | | | | | | 5,555,703 | | |
Share of earnings of equity affiliates, net of tax | | | | | (7,089) | | | | | | 4,407 | | |
Deferred income tax | | | | | 2,080,622 | | | | | | 3,651,234 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | (6,068,178) | | | | | | (532,805) | | |
Inventory and prepaid expenses | | | | | (975,350) | | | | | | (203,929) | | |
Royalty advances | | | | | (1,318,641) | | | | | | (6,912,500) | | |
Other assets | | | | | 138,706 | | | | | | (103,595) | | |
Accounts payable and accrued expenses | | | | | (213,335) | | | | | | 1,684,961 | | |
Income tax payable | | | | | 236,383 | | | | | | 182,911 | | |
Net cash provided by operating activities | | | | | 16,246,946 | | | | | | 11,881,542 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of music catalogs | | | | | (119,966,806) | | | | | | (106,841,628) | | |
Business combination and investment in equity affiliate | | | | | (13,366) | | | | | | (380,417) | | |
Increase (decrease) in deferred music composition acquisition costs | | | | | (86,483) | | | | | | (54,386) | | |
Purchase of property, plant and equipment | | | | | (79,901) | | | | | | (529,950) | | |
Net cash used for investing activities | | | | | (120,146,556) | | | | | | (107,806,381) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Common stock dividend paid | | | | | — | | | | | | (16,875,000) | | |
Issuance of preferred shares, net of issuance costs | | | | | — | | | | | | 81,632,500 | | |
Issuance of common shares, net of issuance costs | | | | | 7,973,009 | | | | | | 14,957,500 | | |
Repayment of secured notes | | | | | — | | | | | | (1,625,000) | | |
Proceeds from secured line of credit | | | | | 40,600,000 | | | | | | 20,000,000 | | |
Repayment of secured line of credit | | | | | — | | | | | | (7,076,870) | | |
Proceeds from secured loans | | | | | — | | | | | | 236,490,849 | | |
Repayments of secured loans | | | | | (1,000,000) | | | | | | (178,247,825) | | |
Deferred financing costs paid | | | | | (648,769) | | | | | | (2,149,017) | | |
Repayments of related party loans | | | | | — | | | | | | (77,496) | | |
Draw on related party loans | | | | | 295,843 | | | | | | — | | |
Net cash provided by financing activities | | | | | 47,220,083 | | | | | | 147,029,641 | | |
Foreign exchange impact on cash | | | | | 7,649,324 | | | | | | (1,981,753) | | |
(Decrease) increase in cash, cash equivalents and restricted cash | | | | | (49,030,203) | | | | | | 49,123,049 | | |
Cash, cash equivalents and restricted cash beginning of year | | | | | 58,240,123 | | | | | | 9,117,074 | | |
Cash and cash equivalents end of year | | | | | 9,209,920 | | | | | | 58,240,123 | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Revenue by Type | | | | | | | | | | | | | |
Performance | | | | | 11,735,057 | | | | | | 9,214,342 | | |
Digital | | | | | 25,595,232 | | | | | | 16,462,371 | | |
Mechanical | | | | | 1,988,951 | | | | | | 1,520,630 | | |
Synchronization | | | | | 5,715,107 | | | | | | 5,147,367 | | |
Other | | | | | 1,636,680 | | | | | | 1,332,708 | | |
Total Music Publishing | | | | | 46,671,027 | | | | | | 33,677,418 | | |
Digital | | | | | 5,853,784 | | | | | | 3,493,968 | | |
Physical | | | | | 1,948,405 | | | | | | 944,013 | | |
Synchronization | | | | | 18,501 | | | | | | 853,171 | | |
Neighboring rights | | | | | 884,310 | | | | | | 1,039,031 | | |
Total Recorded Music | | | | | 8,705,000 | | | | | | 6,330,183 | | |
Other revenue | | | | | 808,163 | | | | | | 302,819 | | |
Total revenues | | | | | 56,184,190 | | | | | | 40,310,420 | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Revenue by Geographical Location | | | | | | | | | | | | | |
United States Music Publishing | | | | | 24,312,965 | | | | | | 16,854,891 | | |
United States Recorded Music | | | | | 2,667,853 | | | | | | 1,873,268 | | |
United States other revenue | | | | | 808,164 | | | | | | 302,819 | | |
Total United States | | | | | 27,788,982 | | | | | | 19,030,978 | | |
International Music Publishing | | | | | 22,358,061 | | | | | | 16,822,527 | | |
International Recorded Music | | | | | 6,037,147 | | | | | | 4,456,915 | | |
Total international | | | | | 28,395,208 | | | | | | 21,279,442 | | |
Total revenues | | | | | 56,184,190 | | | | | | 40,310,420 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Revenue by Type | | | | | | | | | | | | | |
Performance | | | | | 16,514,790 | | | | | | 13,656,061 | | |
Digital | | | | | 35,028,049 | | | | | | 28,798,051 | | |
Mechanical | | | | | 3,050,120 | | | | | | 2,472,527 | | |
Synchronization | | | | | 9,891,034 | | | | | | 6,891,554 | | |
Other | | | | | 2,606,632 | | | | | | 2,124,043 | | |
Total Music Publishing | | | | | 67,090,625 | | | | | | 53,942,236 | | |
Digital | | | | | 7,603,040 | | | | | | 4,569,106 | | |
Physical | | | | | 3,962,596 | | | | | | 1,432,026 | | |
Synchronization | | | | | 492,258 | | | | | | 1,384,959 | | |
Neighboring rights | | | | | 1,537,087 | | | | | | 1,642,405 | | |
Total Recorded Music | | | | | 13,594,981 | | | | | | 9,028,496 | | |
Other revenue | | | | | 1,092,183 | | | | | | 267,940 | | |
Total revenues | | | | | 81,777,789 | | | | | | 63,238,672 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Revenue by Geographical Location | | | | | | | | | | | | | |
United States Music Publishing | | | | | 34,682,505 | | | | | | 30,803,165 | | |
United States Recorded Music | | | | | 4,891,800 | | | | | | 3,475,647 | | |
United States other revenue | | | | | 1,092,183 | | | | | | 267,940 | | |
Total United States | | | | | 40,666,488 | | | | | | 34,546,752 | | |
International Music Publishing | | | | | 32,408,121 | | | | | | 23,139,071 | | |
International Recorded Music | | | | | 8,703,180 | | | | | | 5,552,849 | | |
Total international | | | | | 41,111,301 | | | | | | 28,691,920 | | |
Total revenues | | | | | 81,777,789 | | | | | | 63,238,672 | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Balance at beginning of period | | | | | 473,022 | | | | | | 287,406 | | |
Cash received during period | | | | | 6,464,140 | | | | | | 96,709 | | |
Revenue recognized during period | | | | | (5,063,609) | | | | | | (229,377) | | |
Balance at end of period | | | | | 1,873,553 | | | | | | 154,738 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Balance at beginning of period | | | | | 473,022 | | | | | | 287,406 | | |
Cash received during period | | | | | 6,716,569 | | | | | | 347,407 | | |
Revenue recognized during period | | | | | (5,851,604) | | | | | | (161,791) | | |
Balance at end of period | | | | | 1,337,987 | | | | | | 473,022 | | |
| | Weight-average useful life | | December 31, 2020 | | March 31, 2020 | | | March 31, 2021 | | March 31, 2020 | | |||||||||||||||||
| | | | $ | | $ | | | $ | | $ | | |||||||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Music catalogs (publishing and recorded) | | 27 years | | | | 441,037,551 | | | | | 335,137,807 | | | | | | 457,662,303 | | | | | 335,137,807 | | | |||||
Artist management contracts | | 9 years | | | | 986,523 | | | | | 925,398 | | | | | | 995,464 | | | | | 925,398 | | | |||||
Gross intangible assets | | | | | | | | | | | | | | | | | 458,657,767 | | | | | 336,063,205 | | | |||||
Accumulated amortization | | | | | | (61,761,378) | | | | | (50,954,097) | | | | | | (65,419,757) | | | | | (50,954,097) | | | |||||
Intangible assets, net | | | | | | 380,262,696 | | | | | 285,109,108 | | | | | | 393,238,010 | | | | | 285,109,108 | | |
| | | $ | | |||
2022 | | | | | 14,864,256 | | |
2023 | | | | | 14,864,256 | | |
2024 | | | | | 14,864,256 | | |
2025 | | | | | 14,864,256 | | |
2026 | | | | | 14,864,256 | | |
Thereafter | | | | | 318,916,730 | | |
Total | | | | | 393,238,010 | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Opening balance | | | | | 40,263,439 | | | | | | 32,906,396 | | |
Additions | | | | | 10,951,740 | | | | | | 11,540,471 | | |
Recoupments | | | | | (7,770,515) | | | | | | (8,658,163) | | |
Closing balance | | | | | 43,444,664 | | | | | | 35,788,704 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Opening balance | | | | | 40,263,439 | | | | | | 33,350,939 | | |
Additions | | | | | 14,474,288 | | | | | | 21,130,420 | | |
Recoupments | | | | | (13,155,647) | | | | | | (14,217,920) | | |
Closing balance | | | | | 41,582,080 | | | | | | 40,263,439 | | |
| | December 31, 2020 | | March 31, 2020 | | | | 2021 | | 2020 | | |||||||||||||||
| | $ | | $ | | | $ | | $ | | ||||||||||||||||
Secured loan bearing interest at LIBOR plus a spread | | | | 18,750,000 | | | | | 19,500,000 | | | | | | 18,500,000 | | | | | 19,500,000 | | | ||||
Secured line of credit bearing interest at LIBOR plus a spread | | | | 187,990,848 | | | | | 156,490,848 | | | |||||||||||||||
Debt issuance costs, net | | | | (3,237,015) | | | | | (3,205,416) | | | |||||||||||||||
| | | | 203,503,833 | | | | | 172,785,432 | | | |||||||||||||||
Less: short term portion of Secured loan | | | | 1,000,000 | | | | | 1,000,000 | | | |||||||||||||||
| | | | 202,503,833 | | | | | 171,785,432 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Secured line of credit bearing interest at LIBOR plus a spread | | | | | 197,090,848 | | | | | | 156,490,848 | | |
Debt issuance costs, net | | | | | (3,058,973) | | | | | | (3,205,416) | | |
| | | | | 212,531,875 | | | | | | 172,785,432 | | |
Less: short term portion of Secured loan | | | | | 1,000,000 | | | | | | 1,000,000 | | |
| | | | | 211,531,875 | | | | | | 171,785,432 | | |
|
| | | $ | | |||
2022 | | | | | 1,000,000 | | |
2023 | | | | | 1,000,000 | | |
2024 | | | | | 213,590,848 | | |
| | | | | 215,590,848 | | |
| | | $ | | |||
2023 | | | | | 5,738,348 | | |
2024 | | | | | 213,783 | | |
2025 | | | | | 213,783 | | |
2026 and later | | | | | 574,057 | | |
| | | | | 6,739,971 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Domestic | | | | | 11,126,090 | | | | | | 12,174,556 | | |
Foreign | | | | | 1,663,697 | | | | | | 2,035,352 | | |
Income before income taxes | | | | | 12,789,787 | | | | | | 14,209,908 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Current income taxes: | | | | | | | | | | | | | |
U.S. federal | | | | | (216,528) | | | | | | 236,057 | | |
State and local | | | | | 8,827 | | | | | | 192,141 | | |
Foreign | | | | | 581,232 | | | | | | 119,709 | | |
Total current | | | | | 373,531 | | | | | | 547,907 | | |
Deferred income taxes: | | | | | | | | | | | | | |
U.S. federal | | | | | 2,188,194 | | | | | | 2,775,979 | | |
State and local | | | | | 259,182 | | | | | | (114,785) | | |
Foreign | | | | | (366,754) | | | | | | 990,040 | | |
Total deferred | | | | | 2,080,622 | | | | | | 3,651,234 | | |
Income tax expense | | | | | 2,454,153 | | | | | | 4,199,141 | | |
| | | 2021 | | | 2020 | | ||||||
Federal income tax statutory rate | | | | | 21.0% | | | | | | 21.0% | | |
State and local income taxes, net of federal income tax benefit | | | | | 1.7% | | | | | | 1.4% | | |
Foreign subsidiary earnings | | | | | 2.1% | | | | | | 0.4% | | |
Return to provision adjustments | | | | | (4.9)% | | | | | | (1.5)% | | |
Impact of change in tax rates | | | | | 0.3% | | | | | | 8.2% | | |
Other, net | | | | | (1.0)% | | | | | | 0.1% | | |
Effective income tax rate | | | | | 19.2% | | | | | | 29.6% | | |
| | | 2021 | | | 2020 | | ||||||
| | | $ | | | $ | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforward | | | | | 785,902 | | | | | | 481,360 | | |
Fair value of swaps | | | | | 1,046,459 | | | | | | 1,718,059 | | |
Compensation | | | | | 44,375 | | | | | | 20,682 | | |
Charitable contributions | | | | | 8,951 | | | | | | — | | |
Unrealized foreign exchange losses | | | | | 51,924 | | | | | | — | | |
Total deferred tax assets | | | | | 1,937,611 | | | | | | 2,220,101 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Fixed assets and leasehold improvements | | | | | (44,393) | | | | | | (72,006) | | |
Intangible assets | | | | | (21,628,755) | | | | | | (18,563,334) | | |
Deferred charges | | | | | — | | | | | | — | | |
Total deferred tax liabilities | | | | | (21,673,148) | | | | | | (18,635,340) | | |
Net deferred tax liabilities | | | | | (19,735,537) | | | | | | (16,415,239) | | |
| Federal | | | | $ | 1,795,951 | | | | No expiration date | |
| New York | | | | | 46,903,391 | | | | 2035 – 2040 | |
| California | | | | | 151,988 | | | | 2040 | |
| Tennessee | | | | | 119,951 | | | | 2035 | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Interest paid | | | | | 6,090,304 | | | | | | 4,341,895 | | |
Income taxes paid | | | | | 106,607 | | | | | | 165,067 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Interest paid | | | | | 8,176,888 | | | | | | 6,099,653 | | |
Income taxes paid | | | | | 131,414 | | | | | | 205,067 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Due to Wesbild Inc. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | — | | | | | | — | | |
Due to Wesbild Holdings Ltd., parent company of Wesbild Inc. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | 83,480 | | | | | | 7,665 | | |
Sub-total | | | | | 83,480 | | | | | | 7,665 | | |
Due to (from) DRI Capital Inc., a subsidiary of Wesbild Holdings Ltd. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | 81,738 | | | | | | (60,444) | | |
Due to Reservoir Media Management (Canada) Inc., a subsidiary of Wesbild Holdings Ltd. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | 124,954 | | | | | | 47,108 | | |
Sub-total | | | | | 206,692 | | | | | | (13,336) | | |
| | | | | 290,172 | | | | | | (5,671) | | |
| | | December 31, 2020 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Due to Wesbild Inc. | | | | | | | | | | | | | |
Unsecured, bears no interest, with no specific terms of repayment | | | | | 16,420 | | | | | | — | | |
Due to Wesbild Holdings Ltd., parent company of Wesbild Inc. | | | | | | | | | | | | | |
Unsecured, bears no interest, with no specific terms of repayment | | | | | — | | | | | | 7,665 | | |
Sub-total | | | | | 16,420 | | | | | | 7,665 | | |
Due to (from) DRI Capital Inc., a subsidiary of Wesbild Holdings Ltd. | | | | | | | | | | | | | |
Unsecured, bears no interest, with no specific terms of repayment | | | | | 15,733 | | | | | | (60,444) | | |
Due to Reservoir Media Management (Canada) Inc., a subsidiary of Wesbild Holdings Ltd. | | | | | | | | | | | | | |
Unsecured, bears no interest, with no specific terms of repayment | | | | | 78,973 | | | | | | 47,108 | | |
Sub-total | | | | | 94,706 | | | | | | (13,336) | | |
| | | | | 111,126 | | | | | | (5,671) | | |
| | | Nine Months Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Basic earnings per common share | | | | | | | | | | | | | |
Net income attributable to Reservoir Holdings Inc. | | | | $ | 4,217,041 | | | | | $ | 10,474,165 | | |
Less: income allocated to participating securities | | | | | (1,533,091) | | | | | | (3,471,500) | | |
Net income attributable to common shareholders | | | | $ | 2,683,950 | | | | | $ | 7,002,665 | | |
Basic weighted average common shares outstanding | | | | | 144,431 | | | | | | 125,227 | | |
Basic earnings per common share | | | | $ | 18.58 | | | | | $ | 55.92 | | |
Diluted earnings per common share | | | | | | | | | | | | | |
Net income attributable to common shareholders | | | | $ | 2,683,950 | | | | | $ | 7,002,665 | | |
Add: income allocated to participating securities | | | | | 1,533,091 | | | | | | 3,471,500 | | |
Net income attributable to Reservoir Holdings Inc. | | | | $ | 4,217,041 | | | | | $ | 10,474,165 | | |
Basic weighted average common shares outstanding | | | | | 144,431 | | | | | | 125,227 | | |
Impact of assumed preferred share conversion | | | | | 82,500 | | | | | | 62,080 | | |
Diluted weighted average common shares outstanding | | | | | 226,931 | | | | | | 187,307 | | |
Diluted earnings per common share | | | | $ | 18.58 | | | | | $ | 55.92 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Revenue by Type | | | | | | | | | | | | | |
Performance | | | | | 16,514,790 | | | | | | 13,656,061 | | |
Digital | | | | | 35,028,049 | | | | | | 28,798,051 | | |
Mechanical | | | | | 3,050,120 | | | | | | 2,472,527 | | |
Synchronization | | | | | 9,891,034 | | | | | | 6,891,554 | | |
Other | | | | | 2,606,632 | | | | | | 2,124,043 | | |
Total Music Publishing | | | | | 67,090,625 | | | | | | 53,942,236 | | |
Digital | | | | | 7,603,040 | | | | | | 4,569,106 | | |
Physical | | | | | 3,962,596 | | | | | | 1,432,026 | | |
Synchronization | | | | | 492,258 | | | | | | 1,384,959 | | |
Neighboring rights | | | | | 1,537,087 | | | | | | 1,642,405 | | |
Total Recorded Music | | | | | 13,594,981 | | | | | | 9,028,496 | | |
Other revenue | | | | | 1,092,183 | | | | | | 267,940 | | |
Total revenues | | | | | 81,777,789 | | | | | | 63,238,672 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Revenue by Geographical Location | | | | | | | | | | | | | |
United States Music Publishing | | | | | 34,682,505 | | | | | | 30,803,165 | | |
United States Recorded Music | | | | | 4,891,800 | | | | | | 3,475,647 | | |
United States other revenue | | | | | 1,092,183 | | | | | | 267,940 | | |
Total United States | | | | | 40,666,488 | | | | | | 34,546,752 | | |
International Music Publishing | | | | | 32,408,121 | | | | | | 23,139,071 | | |
International Recorded Music | | | | | 8,703,180 | | | | | | 5,552,849 | | |
Total international | | | | | 41,111,301 | | | | | | 28,691,920 | | |
Total revenues | | | | | 81,777,789 | | | | | | 63,238,672 | | |
| | | Music Publishing | | | Recorded Music | | | Other | | | Consolidated | | ||||||||||||
| | | $ | | | $ | | | $ | | | $ | | ||||||||||||
For the Nine Months Ended December 31, 2020: | | | | | | ||||||||||||||||||||
Total revenue | | | | | 46,671,027 | | | | | | 8,705,000 | | | | | | 808,163 | | | | | | 56,184,190 | | |
Reconciliation of OIBDA to operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | | | 8,859,977 | | | | | | 2,553,779 | | | | | | 103,529 | | | | | | 11,517,285 | | |
Amortization and depreciation | | | | | 8,726,212 | | | | | | 1,720,803 | | | | | | — | | | | | | 10,447,015 | | |
OIBDA | | | | | 17,586,189 | | | | | | 4,274,582 | | | | | | 103,529 | | | | | | 21,964,300 | | |
| | | Music Publishing | | | Recorded Music | | | Other | | | Consolidated | | ||||||||||||
| | | $ | | | $ | | | $ | | | $ | | ||||||||||||
For the Fiscal Year Ended December 31, 2019: | | | | | | ||||||||||||||||||||
Total revenue | | | | | 33,677,418 | | | | | | 6,330,183 | | | | | | 302,819 | | | | | | 40,310,420 | | |
Reconciliation of OIBDA to operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | | | 5,760,382 | | | | | | 2,215,341 | | | | | | 302,819 | | | | | | 8,278,542 | | |
Amortization and depreciation | | | | | 4,801,172 | | | | | | 1,061,788 | | | | | | — | | | | | | 5,862,960 | | |
OIBDA | | | | | 10,561,554 | | | | | | 3,277,129 | | | | | | 302,819 | | | | | | 14,141,502 | | |
| | | March 31, 2020 | | | March 31, 2019 | | ||||||
| | | $ | | | $ | | ||||||
Revenues | | | | | 63,238,672 | | | | | | 45,126,898 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenue | | | | | 27,305,489 | | | | | | 18,873,342 | | |
Amortization and depreciation | | | | | 8,423,197 | | | | | | 5,863,176 | | |
Administration expenses | | | | | 12,032,673 | | | | | | 7,947,183 | | |
Total costs and expenses | | | | | 47,761,359 | | | | | | 32,683,701 | | |
Operating income | | | | | 15,477,313 | | | | | | 12,443,197 | | |
Interest expense | | | | | (6,463,381) | | | | | | (6,201,055) | | |
Gain on foreign exchange | | | | | 30,700 | | | | | | 803,001 | | |
(Loss) on fair value of swaps | | | | | (5,555,702) | | | | | | (2,770,930) | | |
Interest and other income | | | | | 76,894 | | | | | | 82,025 | | |
Gain on retirement of RMM Issuer debt | | | | | 10,644,084 | | | | | | — | | |
Income before income taxes | | | | | 14,209,908 | | | | | | 4,356,238 | | |
Income tax expense | | | | | 4,199,141 | | | | | | 818,635 | | |
Net income | | | | | 10,010,767 | | | | | | 3,537,603 | | |
Net loss attributable to noncontrolling interests | | | | | 47,027 | | | | | | — | | |
Net income attributable to Reservoir Holdings Inc. | | | | | 10,057,794 | | | | | | 3,537,603 | | |
Earnings per common share (Note 14): | | | | | | | | | | | | | |
Basic | | | | $ | 51.38 | | | | | $ | 28.25 | | |
Diluted | | | | $ | 51.38 | | | | | $ | 28.25 | | |
Weighted average common shares outstanding (Note 14): | | | | | | | | | | | | | |
Basic | | | | | 128,875 | | | | | | 125,227 | | |
Diluted | | | | | 195,740 | | | | | | 125,227 | | |
| | | March 31, 2020 | | | March 31, 2019 | | ||||||
| | | $ | | | $ | | ||||||
Net income | | | | | 10,010,767 | | | | | | 3,537,603 | | |
Other comprehensive loss: | | | | | | | | | | | | | |
Translation adjustments | | | | | (1,981,753) | | | | | | (576,185) | | |
Total comprehensive income | | | | | 8,029,014 | | | | | | 2,961,418 | | |
Comprehensive loss attributable to noncontrolling interests | | | | | 47,027 | | | | | | — | | |
Total comprehensive income attributable to Reservoir Holdings, Inc. | | | | | 8,076,041 | | | | | | 2,961,418 | | |
| | | March 31, 2020 | | | March 31, 2019 | | ||||||
| | | $ | | | $ | | ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | 58,240,123 | | | | | | 9,030,883 | | |
Restricted cash | | | | | — | | | | | | 86,191 | | |
Accounts receivable | | | | | 9,745,206 | | | | | | 9,212,401 | | |
Amounts due from related parties (Note 11) | | | | | 5,671 | | | | | | — | | |
Current portion of royalty advances | | | | | 13,845,419 | | | | | | 14,575,058 | | |
Inventory and prepaid expenses | | | | | 431,029 | | | | | | 227,100 | | |
Total current assets | | | | | 82,267,448 | | | | | | 33,131,633 | | |
Intangible assets, net | | | | | 285,109,108 | | | | | | 164,652,065 | | |
Investment in equity affiliates | | | | | 1,498,399 | | | | | | 1,472,389 | | |
Royalty advances, net of current portion | | | | | 26,418,020 | | | | | | 18,775,881 | | |
Property, plant and equipment, net | | | | | 602,976 | | | | | | 245,918 | | |
Other assets | | | | | 695,252 | | | | | | 187,271 | | |
Total assets | | | | | 396,591,203 | | | | | | 218,465,157 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | | 876,144 | | | | | | 2,091,144 | | |
Royalties payable | | | | | 12,169,249 | | | | | | 7,780,997 | | |
Accrued payroll | | | | | 1,532,047 | | | | | | 1,263,435 | | |
Deferred revenue | | | | | 473,022 | | | | | | 287,406 | | |
Other current liabilities | | | | | 7,089,780 | | | | | | 1,991,985 | | |
Amounts due to related parties (Note 11) | | | | | — | | | | | | 71,825 | | |
Current portion of loans and secured notes payable | | | | | 1,000,000 | | | | | | 751,644 | | |
Income taxes payable | | | | | 297,112 | | | | | | 114,201 | | |
Total current liabilities | | | | | 23,437,354 | | | | | | 14,352,637 | | |
Loans and secured notes payable | | | | | 171,785,432 | | | | | | 114,611,404 | | |
Deferred income taxes | | | | | 16,415,239 | | | | | | 3,473,845 | | |
Fair value of swaps | | | | | 7,554,859 | | | | | | 1,999,156 | | |
Other liabilities | | | | | 6,306,430 | | | | | | 1,777,235 | | |
Total liabilities | | | | | 225,499,314 | | | | | | 136,214,277 | | |
Contingencies and commitments (Note 16) | | | | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.00001 par value 500,000 shares authorized; 82,500 shares issued and outstanding at March 31, 2020 | | | | | 81,632,500 | | | | | | — | | |
Common stock, $0.00001 par value; 1,000,000 shares authorized, 140,227 shares issued and outstanding at March 31, 2020; and 125,227 shares issued and outstanding at March 31, 2019 | | | | | 1 | | | | | | 1 | | |
Additional paid-in capital | | | | | 102,423,444 | | | | | | 104,250,000 | | |
Accumulated deficit | | | | | (9,537,465) | | | | | | (19,595,259) | | |
Accumulated other comprehensive income (loss) | | | | | (4,385,615) | | | | | | (2,403,862) | | |
Total Reservoir Holdings Inc. shareholders’ equity | | | | | 170,132,865 | | | | | | 82,250,880 | | |
Noncontrolling interest | | | | | 959,024 | | | | | | — | | |
Total shareholders’ equity | | | | | 171,091,889 | | | | | | 82,250,880 | | |
Total liabilities and shareholders’ equity | | | | | 396,591,203 | | | | | | 218,465,157 | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-In Capital | | | Accumulated deficit | | | Accumulated other comprehensive income (loss) | | | Noncontrolling interest | | | Shareholders’ equity | | |||||||||||||||||||||||||||||||||
| Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | $ | | | | | | | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |||||||||||||||||||||
Balance, March 31, 2018 (Note 1) | | | | | — | | | | | | — | | | | | | 125,227 | | | | | | 1 | | | | | | 95,950,000 | | | | | | (23,132,862) | | | | | | (1,827,677) | | | | | | — | | | | | | 70,989,462 | | |
Shareholder contribution | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,300,000 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,537,603 | | | | | | — | | | | | | — | | | | | | 3,537,603 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (576,185) | | | | | | — | | | | | | (576,185) | | |
Balance, March 31, 2019 | | | | | — | | | | | | — | | | | | | 125,227 | | | | | | 1 | | | | | | 104,250,000 | | | | | | (19,595,259) | | | | | | (2,403,862) | | | | | | — | | | | | | 82,250,880 | | |
Common share dividend | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,875,000) | | | | | | — | �� | | | | | — | | | | | | — | | | | | | (16,875,000) | | |
Issuance of preferred shares | | | | | 82,500 | | | | | | 81,632,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 81,632,500 | | |
Issuance of common shares | | | | | — | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 14,957,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,957,500 | | |
Share-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,944 | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,944 | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,057,794 | | | | | | — | | | | | | (47,027) | | | | | | 10,010,767 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,981,753) | | | | | | — | | | | | | (1,981,753) | | |
Acquisition of noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,006,051 | | | | | | 1,006,051 | | |
Balance, March 31, 2020 | | | | | 82,500 | | | | | | 81,632,500 | | | | | | 140,227 | | | | | | 1 | | | | | | 102,423,444 | | | | | | (9,537,465) | | | | | | (4,385,615) | | | | | | 959,024 | | | | | | 171,091,889 | | |
| | | March 31, 2020 | | | March 31, 2019 | | ||||||
| | | $ | | | $ | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income | | | | | 10,010,767 | | | | | | 3,537,603 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Amortization of intangible assets | | | | | 8,250,305 | | | | | | 5,810,880 | | |
Depreciation of property, plant and equipment | | | | | 172,892 | | | | | | 52,296 | | |
Share-based compensation | | | | | 90,944 | | | | | | — | | |
Gain on retirement of RMM Issuer debt | | | | | (10,644,084) | | | | | | — | | |
Non-cash interest charges | | | | | 674,331 | | | | | | 519,366 | | |
Loss (gain) on fair value of derivative instruments | | | | | 5,555,703 | | | | | | 2,770,930 | | |
Share of earnings of equity affiliates, net of tax | | | | �� | 4,407 | | | | | | 15,992 | | |
Dividend from equity affiliates | | | | | — | | | | | | 55,678 | | |
Deferred income tax | | | | | 3,651,234 | | | | | | 704,434 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | (532,805) | | | | | | (1,408,455) | | |
Inventory and prepaid expenses | | | | | (203,929) | | | | | | (60,999) | | |
Royalty advances | | | | | (6,912,500) | | | | | | (7,543,734) | | |
Other assets | | | | | (103,595) | | | | | | — | | |
Accounts payable and accrued expenses | | | | | 1,684,961 | | | | | | (2,232,184) | | |
Income tax payable | | | | | 182,911 | | | | | | 114,201 | | |
Net cash provided by operating activities | | | | | 11,881,542 | | | | | | 2,336,008 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of music catalogs | | | | | (106,841,628) | | | | | | (29,792,788) | | |
Business combination and investment in equity affiliate | | | | | (380,417) | | | | | | (49,096) | | |
Increase (decrease) in deferred music composition acquisition costs | | | | | (54,386) | | | | | | 234,736 | | |
Purchase of property, plant and equipment | | | | | (529,950) | | | | | | (105,583) | | |
Net cash used for investing activities | | | | | (107,806,381) | | | | | | (29,712,731) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Common stock dividend paid | | | | | (16,875,000) | | | | | | — | | |
Issuance of preferred shares, net of issuance costs | | | | | 81,632,500 | | | | | | — | | |
Issuance of common shares, net of issuance costs | | | | | 14,957,500 | | | | | | — | | |
Capital contribution | | | | | — | | | | | | 8,300,000 | | |
Repayment of secured notes | | | | | (1,625,000) | | | | | | — | | |
Proceeds from secured line of credit | | | | | 20,000,000 | | | | | | 29,600,000 | | |
Repayment of secured line of credit | | | | | (7,076,870) | | | | | | — | | |
Proceeds from secured loans | | | | | 236,490,849 | | | | | | — | | |
Repayments of secured loans | | | | | (178,247,825) | | | | | | (563,733) | | |
Deferred financing costs paid | | | | | (2,149,017) | | | | | | (477,462) | | |
Repayments of related party loans | | | | | (77,496) | | | | | | (6,720,836) | | |
Draw on related party loans | | | | | — | | | | | | 259,335 | | |
Net cash provided by financing activities | | | | | 147,029,641 | | | | | | 30,397,304 | | |
Foreign exchange impact on cash | | | | | (1,981,753) | | | | | | (133,886) | | |
Increase in cash, cash equivalents and restricted cash | | | | | 49,123,049 | | | | | | 2,886,695 | | |
Cash, cash equivalents and restricted cash beginning of year | | | | | 9,117,074 | | | | | | 6,230,379 | | |
Cash, cash equivalents and restricted cash end of year | | | | | 58,240,123 | | | | | | 9,117,074 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Balance at beginning of period | | | | | 473,022 | | | | | | 287,406 | | |
Cash received during period | | | | | 6,716,569 | | | | | | 347,407 | | |
Revenue recognized during period | | | | | (5,851,604) | | | | | | (161,791) | | |
Balance at end of period | | | | | 1,337,987 | | | | | | 473,022 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | |
Music catalogs (publishing and recorded) | | | | | 457,662,303 | | | | | | 335,137,807 | | |
Artist management contracts | | | | | 995,464 | | | | | | 925,398 | | |
Gross intangible assets | | | | | 458,657,767 | | | | | | 336,063,205 | | |
Accumulated amortization | | | | | (65,419,757) | | | | | | (50,954,097) | | |
Intangible assets, net | | | | | 393,238,010 | | | | | | 285,109,108 | | |
| | | $ | | |||
2022 | | | | | 14,864,256 | | |
2023 | | | | | 14,864,256 | | |
2024 | | | | | 14,864,256 | | |
2025 | | | | | 14,864,256 | | |
2026 | | | | | 14,864,256 | | |
Thereafter | | | | | 318,916,730 | | |
Total | | | | | 393,238,010 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Opening balance | | | | | 40,263,439 | | | | | | 33,350,939 | | |
Additions | | | | | 14,474,288 | | | | | | 21,130,420 | | |
Recoupments | | | | | (13,155,647) | | | | | | (14,217,920) | | |
Closing balance | | | | | 41,582,080 | | | | | | 40,263,439 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Secured loan bearing interest at LIBOR plus a spread | | | | | 18,500,000 | | | | | | 19,500,000 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Secured line of credit bearing interest at LIBOR plus a spread | | | | | 197,090,848 | | | | | | 156,490,848 | | |
Debt issuance costs, net | | | | | (3,058,973) | | | | | | (3,205,416) | | |
| | | | | 212,531,875 | | | | | | 172,785,432 | | |
Less: short term portion of Secured loan | | | | | 1,000,000 | | | | | | 1,000,000 | | |
| | | | | 211,531,875 | | | | | | 171,785,432 | | |
|
| | | $ | | |||
2022 | | | | | 1,000,000 | | |
2023 | | | | | 1,000,000 | | |
2024 | | | | | 213,590,848 | | |
| | | | | 215,590,848 | | |
| | | $ | | |||
2023 | | | | | 5,738,348 | | |
2024 | | | | | 213,783 | | |
2025 | | | | | 213,783 | | |
2026 and later | | | | | 574,057 | | |
| | | | | 6,739,971 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Domestic | | | | | 11,126,090 | | | | | | 12,174,556 | | |
Foreign | | | | | 1,663,697 | | | | | | 2,035,352 | | |
Income before income taxes | | | | | 12,789,787 | | | | | | 14,209,908 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Current income taxes: | | | | | | | | | | | | | |
U.S. federal | | | | | (216,528) | | | | | | 236,057 | | |
State and local | | | | | 8,827 | | | | | | 192,141 | | |
Foreign | | | | | 581,232 | | | | | | 119,709 | | |
Total current | | | | | 373,531 | | | | | | 547,907 | | |
Deferred income taxes: | | | | | | | | | | | | | |
U.S. federal | | | | | 2,188,194 | | | | | | 2,775,979 | | |
State and local | | | | | 259,182 | | | | | | (114,785) | | |
Foreign | | | | | (366,754) | | | | | | 990,040 | | |
Total deferred | | | | | 2,080,622 | | | | | | 3,651,234 | | |
Income tax expense | | | | | 2,454,153 | | | | | | 4,199,141 | | |
| | | 2021 | | | 2020 | | ||||||
Federal income tax statutory rate | | | | | 21.0% | | | | | | 21.0% | | |
State and local income taxes, net of federal income tax benefit | | | | | 1.7% | | | | | | 1.4% | | |
Foreign subsidiary earnings | | | | | 2.1% | | | | | | 0.4% | | |
Return to provision adjustments | | | | | (4.9)% | | | | | | (1.5)% | | |
Impact of change in tax rates | | | | | 0.3% | | | | | | 8.2% | | |
Other, net | | | | | (1.0)% | | | | | | 0.1% | | |
Effective income tax rate | | | | | 19.2% | | | | | | 29.6% | | |
| | | 2021 | | | 2020 | | ||||||
| | | $ | | | $ | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforward | | | | | 785,902 | | | | | | 481,360 | | |
Fair value of swaps | | | | | 1,046,459 | | | | | | 1,718,059 | | |
Compensation | | | | | 44,375 | | | | | | 20,682 | | |
Charitable contributions | | | | | 8,951 | | | | | | — | | |
Unrealized foreign exchange losses | | | | | 51,924 | | | | | | — | | |
Total deferred tax assets | | | | | 1,937,611 | | | | | | 2,220,101 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Fixed assets and leasehold improvements | | | | | (44,393) | | | | | | (72,006) | | |
Intangible assets | | | | | (21,628,755) | | | | | | (18,563,334) | | |
Deferred charges | | | | | — | | | | | | — | | |
Total deferred tax liabilities | | | | | (21,673,148) | | | | | | (18,635,340) | | |
Net deferred tax liabilities | | | | | (19,735,537) | | | | | | (16,415,239) | | |
| Federal | | | | $ | 1,795,951 | | | | No expiration date | |
| New York | | | | | 46,903,391 | | | | 2035 – 2040 | |
| California | | | | | 151,988 | | | | 2040 | |
| Tennessee | | | | | 119,951 | | | | 2035 | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Interest paid | | | | | 8,176,888 | | | | | | 6,099,653 | | |
Income taxes paid | | | | | 131,414 | | | | | | 205,067 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Due to Wesbild Inc. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | — | | | | | | — | | |
Due to Wesbild Holdings Ltd., parent company of Wesbild Inc. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | 83,480 | | | | | | 7,665 | | |
Sub-total | | | | | 83,480 | | | | | | 7,665 | | |
Due to (from) DRI Capital Inc., a subsidiary of Wesbild Holdings Ltd. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | 81,738 | | | | | | (60,444) | | |
Due to Reservoir Media Management (Canada) Inc., a subsidiary of Wesbild Holdings Ltd. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | | 124,954 | | | | | | 47,108 | | |
Sub-total | | | | | 206,692 | | | | | | (13,336) | | |
| | | | | 290,172 | | | | | | (5,671) | | |
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Revenue by Type | | | | | | | | | | | | | |
Performance | | | | | 13,656,061 | | | | | | 12,556,210 | | |
Digital | | | | | 28,798,051 | | | | | | 17,938,142 | | |
Mechanical | | | | | 2,472,527 | | | | | | 2,393,703 | | |
Synchronization | | | | | 6,891,554 | | | | | | 7,596,146 | | |
Other | | | | | 2,124,043 | | | | | | 2,356,286 | | |
Total Music Publishing | | | | | 53,942,236 | | | | | | 42,840,487 | | |
Digital | | | | | 4,569,106 | | | | | | 1,045,094 | | |
Physical | | | | | 1,432,026 | | | | | | 69,199 | | |
Synchronization | | | | | 1,384,959 | | | | | | 173,699 | | |
Neighboring rights | | | | | 1,642,405 | | | | | | 674,499 | | |
Total Recorded Music | | | | | 9,028,496 | | | | | | 1,962,491 | | |
Other revenue | | | | | 267,940 | | | | | | 323,920 | | |
Total revenues | | | | | 63,238,672 | | | | | | 45,126,898 | | |
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Revenue by Geographical Location | | | | | | | | | | | | | |
United States Music Publishing | | | | | 30,803,165 | | | | | | 22,770,555 | | |
United States Recorded Music | | | | | 3,475,647 | | | | | | 1,276,834 | | |
United States other revenue | | | | | 267,940 | | | | | | 323,920 | | |
Total United States | | | | | 34,546,752 | | | | | | 24,371,309 | | |
International Music Publishing | | | | | 23,139,071 | | | | | | 20,069,932 | | |
International Recorded Music | | | | | 5,552,849 | | | | | | 685,657 | | |
Total international | | | | | 28,691,920 | | | | | | 20,755,589 | | |
Total revenues | | | | | 63,238,672 | | | | | | 45,126,898 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Revenue by Type | | | | | | | | | | | | | |
Performance | | | | | 16,514,790 | | | | | | 13,656,061 | | |
Digital | | | | | 35,028,049 | | | | | | 28,798,051 | | |
Mechanical | | | | | 3,050,120 | | | | | | 2,472,527 | | |
Synchronization | | | | | 9,891,034 | | | | | | 6,891,554 | | |
Other | | | | | 2,606,632 | | | | | | 2,124,043 | | |
Total Music Publishing | | | | | 67,090,625 | | | | | | 53,942,236 | | |
Digital | | | | | 7,603,040 | | | | | | 4,569,106 | | |
Physical | | | | | 3,962,596 | | | | | | 1,432,026 | | |
Synchronization | | | | | 492,258 | | | | | | 1,384,959 | | |
Neighboring rights | | | | | 1,537,087 | | | | | | 1,642,405 | | |
Total Recorded Music | | | | | 13,594,981 | | | | | | 9,028,496 | | |
Other revenue | | | | | 1,092,183 | | | | | | 267,940 | | |
Total revenues | | | | | 81,777,789 | | | | | | 63,238,672 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Revenue by Geographical Location | | | | | | | | | | | | | |
United States Music Publishing | | | | | 34,682,505 | | | | | | 30,803,165 | | |
United States Recorded Music | | | | | 4,891,800 | | | | | | 3,475,647 | | |
United States other revenue | | | | | 1,092,183 | | | | | | 267,940 | | |
Total United States | | | | | 40,666,488 | | | | | | 34,546,752 | | |
International Music Publishing | | | | | 32,408,121 | | | | | | 23,139,071 | | |
International Recorded Music | | | | | 8,703,180 | | | | | | 5,552,849 | | |
Total international | | | | | 41,111,301 | | | | | | 28,691,920 | | |
Total revenues | | | | | 81,777,789 | | | | | | 63,238,672 | | |
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Balance at beginning of period | | | | | 287,406 | | | | | | 93,180 | | |
Cash received during period | | | | | 347,407 | | | | | | 284,665 | | |
Revenue recognized during period | | | | | (161,791) | | | | | | (90,439) | | |
Balance at end of period | | | | | 473,022 | | | | | | 287,406 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Balance at beginning of period | | | | | 473,022 | | | | | | 287,406 | | |
Cash received during period | | | | | 6,716,569 | | | | | | 347,407 | | |
Revenue recognized during period | | | | | (5,851,604) | | | | | | (161,791) | | |
Balance at end of period | | | | | 1,337,987 | | | | | | 473,022 | | |
| | | | | | | | | | | | 2019 | | |||||||||||||||
| | | Weight- average useful life | | | 2020 | | | Music catalogs securing non- recourse debt of RMM Issuer(a) | | | All other intangible assets | | | Total | | ||||||||||||
| | | | | | $ | | | $ | | | $ | | | $ | | ||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Music catalogs (publishing and recorded) | | | 27 years | | | | | 335,137,807 | | | | | | 21,645,058 | | | | | | 185,731,030 | | | | | | 207,376,088 | | |
Artist management contracts | | | 10 years | | | | | 925,398 | | | | | | — | | | | | | — | | | | | | — | | |
Gross intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated amortization | | | | | | | | (50,954,097) | | | | | | (18,989,847) | | | | | | (23,734,176) | | | | | | (42,724,023) | | |
Intangible assets, net | | | | | | | | 285,109,108 | | | | | | 2,655,211 | | | | | | 161,996,854 | | | | | | 164,652,065 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
| | | $ | | | $ | | ||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | |
Music catalogs (publishing and recorded) | | | | | 457,662,303 | | | | | | 335,137,807 | | |
Artist management contracts | | | | | 995,464 | | | | | | 925,398 | | |
Gross intangible assets | | | | | 458,657,767 | | | | | | 336,063,205 | | |
Accumulated amortization | | | | | (65,419,757) | | | | | | (50,954,097) | | |
Intangible assets, net | | | | | 393,238,010 | | | | | | 285,109,108 | | |
| | | $ | | |||
2021 | | | | | 12,505,051 | | |
2022 | | | | | 12,505,051 | | |
2023 | | | | | 12,505,051 | | |
2024 | | | | | 12,505,051 | | |
2025 | | | | | 12,505,051 | | |
Thereafter | | | | | 222,583,853 | | |
Total | | | | | 285,109,108 | | |
| | | $ | | |||
2022 | | | | | 14,864,256 | | |
2023 | | | | | 14,864,256 | | |
2024 | | | | | 14,864,256 | | |
2025 | | | | | 14,864,256 | | |
2026 | | | | | 14,864,256 | | |
Thereafter | | | | | 318,916,730 | | |
Total | | | | | 393,238,010 | | |
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Opening balance | | | | | 33,350,939 | | | | | | 25,807,205 | | |
Additions | | | | | 21,130,420 | | | | | | 18,146,866 | | |
Recoupments | | | | | (14,217,920) | | | | | | (10,603,132) | | |
Closing balance | | | | | 40,263,439 | | | | | | 33,350,939 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Opening balance | | | | | 40,263,439 | | | | | | 33,350,939 | | |
Additions | | | | | 14,474,288 | | | | | | 21,130,420 | | |
Recoupments | | | | | (13,155,647) | | | | | | (14,217,920) | | |
Closing balance | | | | | 41,582,080 | | | | | | 40,263,439 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Secured loan bearing interest at LIBOR plus a spread | | | | | 18,500,000 | | | | | | 19,500,000 | | |
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Secured loan bearing interest at LIBOR plus a spread | | | | | 19,500,000 | | | | | | 6,576,870 | | |
Secured line of credit bearing interest at LIBOR plus a spread | | | | | 156,490,848 | | | | | | 98,247,825 | | |
Secured notes of RMM Issuer | | | | | | | | | | | | | |
Series 2007-A secured notes bearing interest at LIBOR plus 3.03% | | | | | — | | | | | | 12,329,871 | | |
Debt issuance costs, net | | | | | (3,205,416) | | | | | | (1,791,518) | | |
| | | | | 172,785,432 | | | | | | 115,363,048 | | |
Less: short term portion of Secured loan | | | | | 1,000,000 | | | | | | 751,644 | | |
| | | | | 171,785,432 | | | | | | 114,611,404 | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Secured line of credit bearing interest at LIBOR plus a spread | | | | | 197,090,848 | | | | | | 156,490,848 | | |
Debt issuance costs, net | | | | | (3,058,973) | | | | | | (3,205,416) | | |
| | | | | 212,531,875 | | | | | | 172,785,432 | | |
Less: short term portion of Secured loan | | | | | 1,000,000 | | | | | | 1,000,000 | | |
| | | | | 211,531,875 | | | | | | 171,785,432 | | |
|
| | $ | | | $ | | ||||||||
2021 | | | | 1,000,000 | | | ||||||||
2022 | | | | 1,000,000 | | | | | | 1,000,000 | | | ||
2023 | | | | 1,000,000 | | | | | | 1,000,000 | | | ||
2024 | | | | 172,990,848 | | | | | | 213,590,848 | | | ||
| | | | 175,990,848 | | | | | | 215,590,848 | | |
| | $ | | | $ | | ||||||||
2022 | | | | 200,000 | | | ||||||||
2023 | | | | 5,149,876 | | | | | | 5,738,348 | | | ||
2024 | | | | 200,000 | | | | | | 213,783 | | | ||
2025 and later | | | | 756,554 | | | ||||||||
2025 | | | | 213,783 | | | ||||||||
2026 and later | | | | 574,057 | | | ||||||||
| | | | 6,306,430 | | | | | | 6,739,971 | | |
| | 2020 | | 2019 | | | | 2021 | | 2020 | | |||||||||||||||
| | $ | | $ | | | $ | | $ | | ||||||||||||||||
Domestic | | | | 12,174,556 | | | | | 4,197,484 | | | | | | 11,126,090 | | | | | 12,174,556 | | | ||||
Foreign | | | | 2,035,352 | | | | | 158,754 | | | | | | 1,663,697 | | | | | 2,035,352 | | | ||||
Income before income taxes | | | | 14,209,908 | | | | | 4,356,238 | | | | | | 12,789,787 | | | | | 14,209,908 | | |
| | 2020 | | 2019 | | | | 2021 | | 2020 | | |||||||||||||||
| | $ | | $ | | | $ | | $ | | ||||||||||||||||
Current income taxes: | | | | | | | | | | | | | | | | | | | | | | | ||||
U.S. federal | | | | 236,057 | | | | | — | | | | | | (216,528) | | | | | 236,057 | | | ||||
State and local | | | | 192,141 | | | | | 7,090 | | | | | | 8,827 | | | | | 192,141 | | | ||||
Foreign | | | | 119,709 | | | | | 107,111 | | | | | | 581,232 | | | | | 119,709 | | | ||||
Total current | | | | 547,907 | | | | | 114,201 | | | | | | 373,531 | | | | | 547,907 | | | ||||
Deferred income taxes: | | | | | | | | | | | | | | | | | | | | | | | ||||
U.S. federal | | | | 2,775,979 | | | | | 775,326 | | | | | | 2,188,194 | | | | | 2,775,979 | | | ||||
State and local | | | | (114,785) | | | | | 4,469 | | | | | | 259,182 | | | | | (114,785) | | | ||||
Foreign | | | | 990,040 | | | | | (75,361) | | | | | | (366,754) | | | | | 990,040 | | | ||||
Total deferred | | | | 3,651,234 | | | | | 704,434 | | | | | | 2,080,622 | | | | | 3,651,234 | | | ||||
Income tax expense | | | | 4,199,141 | | | | | 818,635 | | | | | | 2,454,153 | | | | | 4,199,141 | | |
| | 2020 | | 2019 | | | 2021 | | 2020 | | ||||||||||||||||
Federal income tax statutory rate | | | | 21.0% | | | | | 21.0% | | | | | | 21.0% | | | | | 21.0% | | | ||||
State and local income taxes, net of federal income tax benefit | | | | 1.4% | | | | | 1.6% | | | | | | 1.7% | | | | | 1.4% | | | ||||
Foreign subsidiary earnings | | | | 0.4% | | | | | 0.9% | | | | | | 2.1% | | | | | 0.4% | | | ||||
Prior period adjustments | | | | (1.5)% | | | | | 1.7% | | | |||||||||||||||
Return to provision adjustments | | | | (4.9)% | | | | | (1.5)% | | | |||||||||||||||
Impact of change in tax rates | | | | 8.2% | | | | | (1.3)% | | | | | | 0.3% | | | | | 8.2% | | | ||||
Change in valuation allowance | | | | 0.0% | | | | | (5.2)% | | | |||||||||||||||
Other, net | | | | 0.1% | | | | | 0.1% | | | | | | (1.0)% | | | | | 0.1% | | | ||||
Effective income tax rate | | | | 29.6% | | | | | 18.8% | | | | | | 19.2% | | | | | 29.6% | | |
| | 2020 | | 2019 | | | 2021 | | 2020 | | ||||||||||||||||
| | $ | | $ | | | $ | | $ | | ||||||||||||||||
Deferred tax assets: | | | | | | | | | | | | | | | | | | | | | | | ||||
Net operating loss carryforward | | | | 481,360 | | | | | 2,652,723 | | | | | | 785,902 | | | | | 481,360 | | | ||||
Fair value of swaps | | | | 1,718,059 | | | | | 442,715 | | | | | | 1,046,459 | | | | | 1,718,059 | | | ||||
Compensation | | | | 20,682 | | | | | — | | | | | | 44,375 | | | | | 20,682 | | | ||||
Fixed assets and leasehold improvements | | | | — | | | | | 5,514 | | | |||||||||||||||
Charitable contributions | | | | 8,951 | | | | | — | | | |||||||||||||||
Unrealized foreign exchange losses | | | | — | | | | | 3,654 | | | | | | 51,924 | | | | | — | | | ||||
Total deferred tax assets | | | | 2,220,101 | | | | | 3,104,606 | | | | | | 1,937,611 | | | | | 2,220,101 | | | ||||
Deferred tax liabilities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Fixed assets and leasehold improvements | | | | (72,006) | | | | | — | | | | | | (44,393) | | | | | (72,006) | | | ||||
Intangible assets | | | | (18,563,334) | | | | | (6,521,334) | | | | | | (21,628,755) | | | | | (18,563,334) | | | ||||
Deferred charges | | | | — | | | | | (57,117) | | | | | | — | | | | | — | | | ||||
Total deferred tax liabilities | | | | (18,635,340) | | | | | (6,578,451) | | | | | | (21,673,148) | | | | | (18,635,340) | | | ||||
Net deferred tax liabilities | | | | (16,415,239) | | | | | (3,473,845) | | | | | | (19,735,537) | | | | | (16,415,239) | | |
| Federal | | | | $ | 1,795,951 | | | | No expiration date | |
| New York | | | | | 46,903,391 | | | | 2035 – 2040 | |
| California | | | | | 151,988 | | | | 2040 | |
| Tennessee | | | | | 119,951 | | | | 2035 | |
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Cash and cash equivalents | | | | | 58,240,123 | | | | | | 9,030,883 | | |
Restricted cash | | | | | — | | | | | | 86,191 | | |
Total cash, cash equivalents and restricted cash | | | | | 58,240,123 | | | | | | 9,117,074 | | |
| | | 2020 | | | 2019 | | ||||||
| | | $ | | | $ | | ||||||
Interest paid | | | | | 6,099,653 | | | | | | 5,663,039 | | |
Income taxes paid | | | | | 205,067 | | | | | | — | | |
| | | 2021 | | | 2020 | | ||||||
| $ | | | $ | | ||||||||
Interest paid | | | | | 8,176,888 | | | | | | 6,099,653 | | |
Income taxes paid | | | | | 131,414 | | | | | | 205,067 | | |
| | 2020 | | 2019 | | | | 2021 | | 2020 | | |||||||||||||||
| | $ | | $ | | | $ | | $ | | ||||||||||||||||
Due to Wesbild Inc. | | | | | | | | | | | | | | |||||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | — | | | | | 108,746 | | | | | | — | | | | | — | | | ||||
Due to Wesbild Holdings Ltd., parent company of Wesbild Inc. | | | | | | | | | | | | | | |||||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | 7,665 | | | | | 4,376 | | | | | | 83,480 | | | | | 7,665 | | | ||||
Sub-total | | | | 7,665 | | | | | 113,122 | | | | | | 83,480 | | | | | 7,665 | | | ||||
Due to (from) DRI Capital Inc., a subsidiary of Wesbild Holdings Ltd. | | | | | | | | | | | | | | |||||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | (60,444) | | | | | (74,809) | | | | | | 81,738 | | | | | (60,444) | | | ||||
Due to Reservoir Media Management (Canada) Inc., a subsidiary of Wesbild Holdings Ltd. | | | | | | | | | | | | | | |||||||||||||
Unsecured, bears no interest, with no specific terms of repayment | | | | 47,108 | | | | | 33,512 | | | | | | 124,954 | | | | | 47,108 | | | ||||
Sub-total | | | | (13,336) | | | | | (41,297) | | | | | | 206,692 | | | | | (13,336) | | | ||||
| | | | (5,671) | | | | | 71,825 | | | | | | 290,172 | | | | | (5,671) | | |
| | Total Number of Options | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | | Weighted Average Remaining Contractual Term (Years) | | | | Total Number of Options | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | | Weighted Average Remaining Contractual Term (Years) | | |||||||||||||||||||||||||||||||
| | | | | | | $ | | $ | | | | | | | | | | | | | $ | | $ | | | | | | | ||||||||||||||||||||
Outstanding at April 1, 2019 | | | | — | | | | | — | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Outstanding at April 1, 2020 | | | | 7,624 | | | | | 1,000 | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Granted | | | | 7,700 | | | | | 1,000.00 | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | ||||||||
Exercised | | | | — | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | ||||||||
Forfeited | | | | (76) | | | | | 1,000.00 | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | ||||||||
Outstanding at March 31, 2020 | | | | 7,624 | | | | | 1,000.00 | | | | | — | | | | | 9.1 | | | |||||||||||||||||||||||||||||
Exercisable at March 31, 2020 | | | | — | | | | | — | | | | | — | | | | | | | | |||||||||||||||||||||||||||||
Vested or expected to vest at March 31, 2020 | | | | 7,624 | | | | | 1,000.00 | | | | | — | | | | | 9.1 | | | |||||||||||||||||||||||||||||
Outstanding at March 31, 2021 | | | | 7,624 | | | | | 1,000 | | | | | 4,933,306 | | | | | 8.1 | | | |||||||||||||||||||||||||||||
Exercisable at March 31, 2021 | | | | — | | | | | — | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Vested or expected to vest at March 31, 2021 | | | | 7,624 | | | | | 1,000 | | | | | 4,933,306 | | | | | 8.1 | | |
| | 2020 | | 2019 | | | 2021 | | 2020 | | ||||||||||||||||
Basic earnings per common share | | | | | | | | | | | | | | | | | | | | | | | ||||
Net income attributable to Reservoir Holdings Inc. | | | $ | 10,057,794 | | | | $ | 3,537,603 | | | | | $ | 10,288,961 | | | | $ | 10,057,794 | | | ||||
Less: income allocated to participating securities | | | | (3,435,754) | | | | $ | — | | | | | | (3,736,121) | | | | $ | (3,435,754) | | | ||||
Net income attributable to common shareholders | | | $ | 6,622,040 | | | | $ | 3,537,603 | | | | | $ | 6,552,840 | | | | $ | 6,622,040 | | | ||||
Basic weighted average common shares outstanding | | | | 128,875 | | | | | 125,227 | | | | | | 144,698 | | | | | 128,875 | | | ||||
Basic earnings per common share | | | $ | 51.38 | | | | $ | 28.25 | | | | | $ | 45.29 | | | | $ | 51.38 | | | ||||
Diluted earnings per common share | | | | | | | | | | | | | | | | | | | | | | | ||||
Net income attributable to common shareholders | | | $ | 6,622,040 | | | | $ | 3,537,603 | | | | | $ | 6,552,840 | | | | $ | 6,622,040 | | | ||||
Add: income allocated to participating securities | | | | 3,435,754 | | | | | — | | | | | | 3,736,121 | | | | | 3,435,754 | | | ||||
Net income attributable to Reservoir Holdings Inc. | | | $ | 10,057,794 | | | | $ | 3,537,603 | | | | | $ | 10,288,961 | | | | $ | 10,057,794 | | | ||||
Basic weighted average common shares outstanding | | | | 128,875 | | | | | 125,227 | | | | | | 144,698 | | | | | 128,875 | | | ||||
Impact of assumed preferred share conversion | | | | 66,865 | | | | | — | | | | | | 82,500 | | | | | 66,865 | | | ||||
Diluted weighted average common shares outstanding | | | | 195,740 | | | | | 125,227 | | | | | | 227,198 | | | | | 195,740 | | | ||||
Diluted earnings per common share | | | $ | 51.38 | | | | $ | 28.25 | | | | | $ | 45.29 | | | | $ | 51.38 | | |
| | $ | | | $ | | ||||||||
2021 | | | | 825,085 | | | ||||||||
2022 | | | | 817,966 | | | | | | 817,966 | | | ||
2023 | | | | 586,303 | | | | | | 586,303 | | | ||
2024 | | | | 248,981 | | | | | | 248,981 | | | ||
| | | | 2,478,336 | | | | | | 1,653,250 | | |
For the Fiscal Year Ended March 31, 2021: | | | Music Publishing | | | Recorded Music | | | Other | | | Consolidated | | ||||||||||||
| | | $ | | | $ | | | $ | | | $ | | ||||||||||||
Total revenue | | | | | 67,090,625 | | | | | | 13,594,981 | | | | | | 1,092,183 | | | | | | 81,777,789 | | |
Reconciliation of OIBDA to operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | | | 15,074,983 | | | | | | 4,333,644 | | | | | | 262,494 | | | | | | 19,671,121 | | |
Amortization and depreciation | | | | | 11,791,568 | | | | | | 2,230,866 | | | | | | 106,170 | | | | | | 14,128,604 | | |
For the Fiscal Year Ended March 31, 2021: | | | Music Publishing | | | Recorded Music | | | Other | | | Consolidated | | ||||||||||||
| | | $ | | | $ | | | $ | | | $ | | ||||||||||||
OIBDA | | | | | 26,866,551 | | | | | | 6,564,510 | | | | | | 368,664 | | | | | | 33,799,725 | | |
|
For the Fiscal Year Ended March 31, 2020: | | | Music Publishing | | | Recorded Music | | | Other | | | Consolidated | | ||||||||||||
| | | $ | | | $ | | | $ | | | $ | | ||||||||||||
Total revenue | | | | | 53,942,236 | | | | | | 9,028,496 | | | | | | 267,940 | | | | | | 63,238,672 | | |
Reconciliation of OIBDA to operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | | | 13,637,115 | | | | | | 1,708,568 | | | | | | 131,630 | | | | | | 15,477,313 | | |
Amortization and depreciation | | | | | 6,653,020 | | | | | | 1,770,177 | | | | | | — | | | | | | 8,423,197 | | |
OIBDA | | | | | 20,290,135 | | | | | | 3,478,745 | | | | | | 131,630 | | | | | | 23,900,510 | | |
For the Fiscal Year Ended March 31, 2019: | | | Music Publishing | | | Recorded Music | | | Other | | | Consolidated | | ||||||||||||
| | | $ | | | $ | | | $ | | | $ | | ||||||||||||
Total revenue | | | | | 42,840,487 | | | | | | 1,962,491 | | | | | | 323,920 | | | | | | 45,126,898 | | |
Reconciliation of OIBDA to operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | | | 11,546,671 | | | | | | 896,526 | | | | | | — | | | | | | 12,443,197 | | |
Amortization and depreciation | | | | | 5,563,628 | | | | | | 299,548 | | | | | | — | | | | | | 5,863,176 | | |
OIBDA | | | | | 17,110,299 | | | | | | 1,196,074 | | | | | | — | | | | | | 18,306,373 | | |
| | 2020 | | 2019 | | | | 2021 | | 2020 | | |||||||||||||||
| | $ | | $ | | | $ | | $ | | ||||||||||||||||
United States | | | | 339,420 | | | | | 245,918 | | | | | | 187,861 | | | | | 339,420 | | | ||||
United Kingdom | | | | 263,556 | | | | | — | | | | | | 133,905 | | | | | 263,556 | | | ||||
Other | | | | — | | | | | — | | | |||||||||||||||
Total | | | | 602,976 | | | | | 245,918 | | | | | | 321,766 | | | | | 602,976 | | |
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| ANNEXES | | | | | | | | ||||||
| Annex I | | | — | | | Assumed Indebtedness | | | | ||||
| Annex II | | | — | | | Insiders of Acquiror | | | | ||||
| EXHIBITS | | | | | | | | ||||||
| Exhibit A | | | — | | | Form of Acquiror Support Agreement | | | | ||||
| Exhibit B | | | — | | | Form of Registration Rights Agreement | | | | ||||
| Exhibit C | | | — | | | Form of Lockup Agreement | | | | ||||
| Exhibit D | | | — | | | Form of Stockholders Agreement | | | | ||||
| Exhibit E | | | — | | | Form of Subscription Agreements | | | | ||||
| Exhibit F | | | — | | | Form of PIPE Registration Rights Agreement | | | | | | ||
| Exhibit G | | | — | | | Form of Equity Compensation Plan | | | | ||||
| Exhibit H | | | — | | | Form of Acquiror A&R Bylaws | | | | ||||
| Exhibit I | | | — | | | Form of Acquiror A&R Charter | | | | ||||
| Disclosure Letter | | | |
Term | | | Section | |
2020 Financials | | | 5.4 | |
Acquiror | | | Preamble | |
Acquiror A&R Bylaws | | | Recitals | |
Acquiror A&R Charter | | | Recitals | |
Acquiror Board | | | 1.5(b) | |
Acquiror Board Recommendation | | | 7.2(f) | |
Acquiror Certifications | | | 4.12(c) | |
Acquiror Change in Recommendation | | | 7.2(f) | |
Acquiror D&O Policy | | | 6.3(b) | |
Acquiror SEC Documents | | | 4.12(a) | |
Term | | | Section | |
Acquiror Stockholder Approval | | | 4.26 | |
Acquiror Stockholders’ Meeting | | | 7.2(a) | |
Acquiror Support Agreement | | | Recitals | |
Additional Proposal | | | 7.2(b) | |
Affiliate Transaction | | | 3.21 | |
Agreement | | | Preamble | |
Alternative Proposal | | | 7.1 | |
Amendment Proposal | | | 7.2(b) | |
Antitrust Laws | | | 7.4(b) | |
As-Converted Preferred Stock | | | 2.1(a) | |
Balance Sheet Date | | | 3.7 | |
Benefit Arrangement | | | 3.19(a) | |
Bonds | | | 3.16(a) | |
Certificate of Merger | | | 1.2(a) | |
Certificates | | | 2.2(b) | |
C-H | | | 4.4 | |
Closing | | | 1.2(b) | |
Closing Date | | | 1.2(b) | |
Closing Form 8-K | | | 7.6(b) | |
Closing Legal Impediment | | | 8.1(a) | |
Closing Press Release | | | 7.6(b) | |
Closing Tax Opinion | | | 7.9(d) | |
Closing Tax Representation Letters | | | 7.9(e) | |
Company | | | Preamble | |
Company Board | | | 3.5(c) | |
Company Financial Statements | | | 3.7 | |
Company Preferred Stock Conversion | | | 2.1(a) | |
Computer Systems | | | 3.15(h) | |
D&O Policy | | | 5.6(a) | |
D&O Policy | | | 5.6(a) | |
DGCL | | | Recitals | |
Effect | | | 10.13(a) | |
Effective Time | | | 1.2(a) | |
Election of Directors Proposal | | | 7.2(b) | |
Equity Compensation Plan | | | Recitals | |
Equity Compensation Plan | | | Recitals | |
Equity Compensation Plan Proposal | | | 7.2(b) | |
ERISA | | | 3.19(a) | |
ERISA Affiliate | | | 3.19(d) | |
Exchange Agent | | | 2.2(a) | |
Exchange Fund) | | | 2.2(a) | |
Exchanged Option | | | 2.1(b)(iv) | |
Excluded Shares | | | 2.1(b)(ii) | |
Grant Date | | | 3.5(c) | |
HSR Filing | | | 3.3(a) | |
Insider Letter Agreement | | | 4.24 | |
Intended Tax Treatment | | | Recitals | |
IRS | | | 3.19(c) | |
Key Employees | | | 5.3 | |
Term | | | Section | |
Leased Real Properties | | | 3.12(b) | |
Leased Real Property | | | 3.12(b) | |
Letter of Transmittal | | | 2.2(b) | |
Lockup Agreement | | | Recitals | |
Marketing Agreement | | | 4.4 | |
Material Contract | | | 3.22 | |
Merger | | | Recitals | |
Merger Sub | | | Preamble | |
Merger Sub Common Stock | | | 4.5(b) | |
Merger Sub Common Stock | | | 4.5(b) | |
Nasdaq Proposal | | | 7.2(b) | |
Nine Month Financials | | | 5.4 | |
Non-PEO Benefit Arrangements | | | 3.19(a) | |
Offer | | | Recitals | |
Other Filings | | | 7.2(a) | |
Outside Date | | | 9.1(e)(i) | |
Owned Intellectual Property | | | 3.15(a) | |
Parties | | | Preamble | |
Party | | | Preamble | |
PEO Benefit Arrangements | | | 3.19(a) | |
Per Share Merger Consideration | | | 2.1(b)(i) | |
Permitted Interim Acquisition Indebtedness | | | 5.1(iv) | |
Personal Information | | | 3.15(j) | |
PIPE Escrow | | | 7.2(g) | |
PIPE Financing | | | Recitals | |
PIPE Investment Amount | | | 4.19 | |
PIPE Investor | | | 4.19 | |
Policies | | | 3.16(a) | |
Post-Closing Directors | | | 1.5(b) | |
Pre-Closing Period | | | 5.1 | |
Pre-Closing Period | | | 5.1 | |
Privacy Policy | | | 3.15(i) | |
Real Property Leases | | | 3.12(b) | |
Registration Rights Agreement | | | Recitals | |
Required Financials | | | 5.4 | |
Required Financial Statements | | | 5.4 | |
Reservoir Media | | | 3.7 | |
Roth | | | 4.4 | |
SEC Tax Opinion | | | 7.9(d) | |
SEC Tax Representation Letters | | | 7.9(e) | |
Sponsor | | | Recitals | |
Stockholders Agreement | | | Recitals | |
Subscription Agreements | | | Recitals | |
Surviving Corporation | | | 1.1 | |
Surviving Corporation | | | Recitals | |
Tax Opinions | | | 7.9(d) | |
Tax Representation Letters | | | 7.9(e) | |
Transaction Proposal | | | 7.2(b) | |
Trust Account | | | 4.8 | |
Term | | | Section | |
Trust Agreement | | | 4.8 | |
Trustee | | | 4.8 | |
Voting Matters | | | 7.2(b) | |
Works | | | 3.15(f) | |
Written Consent | | | Recitals | |
| | | | ROTH CH ACQUISITION II CO. | | ||||||
| | | | By: | | | /s/ Byron Roth | | |||
| | | | | | | Name: | | | Byron Roth | |
| | | | | | | Title: | | | Chairman & CEO | |
| | | | ROTH CH II MERGER SUB CORP. | | ||||||
| | | | By: | | | /s/ Byron Roth | | |||
| | | | | | | Name: | | | Byron Roth | |
| | | | | | | Title: | | | Chairman & CEO | |
| | | | RESERVOIR HOLDINGS, INC. | | ||||||
| | | | By: | | | /s/ Golnar Khosrowshahi | | |||
| | | | | | | Name: | | | Golnar Khosrowshahi | |
| | | | | | | Title: | | | Chief Executive Officer | |
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