Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | May 28, 2024 | |
Document and Entity Information | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39795 | |
Entity Registrant Name | RESERVOIR MEDIA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-3584204 | |
Entity Address, Address Line One | 200 Varick Street | |
Entity Address, Address Line Two | Suite 801A | |
Entity Address, City or Town | NY | |
Entity Address State Or Province | NY | |
Entity Address, Postal Zip Code | 10014 | |
City Area Code | 212 | |
Local Phone Number | 675-0541 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Document Financial Statement Error Correction [Flag] | false | |
Entity Shell Company | false | |
Entity Public Float | $ 125,361,786 | |
Entity Common Stock, Shares Outstanding | 64,900,014 | |
Auditor Firm ID | 34 | |
Auditor Name | Deloitte & Touche LLP | |
Auditor Location | New York, New York | |
Entity Central Index Key | 0001824403 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Common Stock | ||
Document and Entity Information | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share (the “Common Stock”) | |
Trading Symbol | RSVR | |
Security Exchange Name | NASDAQ | |
Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share | ||
Document and Entity Information | ||
Title of 12(b) Security | Warrants to purchase one share of Common | |
Trading Symbol | RSVRW | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF INCOME | ||
Revenues | $ 144,855,690 | $ 122,286,530 |
Costs and expenses: | ||
Cost of revenue | 55,478,286 | 47,986,130 |
Amortization and depreciation | 24,985,688 | 22,074,897 |
Administration expenses | 39,815,892 | 31,167,786 |
Total costs and expenses | 120,279,866 | 101,228,813 |
Operating income | 24,575,824 | 21,057,717 |
Interest expense | (21,087,713) | (14,756,187) |
Loss on early extinguishment of debt | (914,040) | |
(Loss) gain on foreign exchange | (101,834) | 269,151 |
(Loss) gain on fair value of swaps | (1,124,770) | 2,765,082 |
Other income (expense), net | (1,089,442) | (17,194) |
Income before income taxes | 1,172,065 | 8,404,529 |
Income tax expense | 334,804 | 5,624,896 |
Net income | 837,261 | 2,779,633 |
Net income attributable to noncontrolling interests | (192,324) | (240,432) |
Net income attributable to Reservoir Media, Inc. | $ 644,937 | $ 2,539,201 |
Earnings per common share (Note 13): | ||
Basic | $ 0.01 | $ 0.04 |
Diluted | $ 0.01 | $ 0.04 |
Weighted average common shares outstanding (Note 13): | ||
Basic | 64,757,112 | 64,339,703 |
Diluted | 65,255,901 | 64,833,207 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income | $ 837,261 | $ 2,779,633 |
Other comprehensive income (loss): | ||
Translation adjustments | 1,057,596 | (3,657,271) |
Total comprehensive income (loss) | 1,894,857 | (877,638) |
Comprehensive income attributable to noncontrolling interests | (192,324) | (240,432) |
Total comprehensive income (loss) attributable to Reservoir Media, Inc. | $ 1,702,533 | $ (1,118,070) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 18,132,015 | $ 14,902,076 |
Accounts receivable | 33,227,382 | 31,255,867 |
Current portion of royalty advances | 13,248,008 | 15,188,656 |
Inventory and prepaid expenses | 6,300,915 | 5,458,522 |
Total current assets | 70,908,320 | 66,805,121 |
Intangible assets, net | 640,222,000 | 617,404,741 |
Equity method and other investments | 1,451,924 | 2,305,719 |
Royalty advances, net of current portion | 56,527,557 | 51,737,844 |
Property, plant and equipment, net | 551,410 | 568,339 |
Operating lease right of use assets, net | 6,988,340 | 7,356,312 |
Fair value of swap assets | 5,753,488 | 6,756,884 |
Other assets | 1,131,529 | 1,147,969 |
Total assets | 783,534,568 | 754,082,929 |
Current liabilities | ||
Accounts payable and accrued liabilities | 9,015,939 | 6,680,421 |
Royalties payable | 40,395,205 | 33,235,235 |
Accrued payroll | 2,043,772 | 1,689,310 |
Deferred revenue | 1,163,953 | 2,151,889 |
Other current liabilities | 7,313,615 | 10,583,794 |
Income taxes payable | 439,152 | 204,987 |
Total current liabilities | 60,371,636 | 54,545,636 |
Secured line of credit | 330,791,607 | 311,491,581 |
Deferred income taxes | 30,471,978 | 30,525,523 |
Operating lease liabilities, net of current portion | 6,720,287 | 7,072,553 |
Fair value of swap liability | 121,374 | |
Other liabilities | 572,705 | 785,113 |
Total liabilities | 429,049,587 | 404,420,406 |
Contingencies and commitments (Note 16) | ||
Shareholders' Equity | ||
Preferred stock, $0.0001 par value 75,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2024 and 2023 | ||
Common stock, $0.0001 par value; 750,000,000 shares authorized, 64,826,864 issued and outstanding at March 31, 2024; 64,441,244 issued and outstanding at March 31, 2023 | 6,483 | 6,444 |
Additional paid-in capital | 341,388,351 | 338,460,789 |
Retained earnings | 15,397,657 | 14,752,720 |
Accumulated other comprehensive loss | (3,797,733) | (4,855,329) |
Total Reservoir Media, Inc. shareholders' equity | 352,994,758 | 348,364,624 |
Noncontrolling interest | 1,490,223 | 1,297,899 |
Total shareholders' equity | 354,484,981 | 349,662,523 |
Total liabilities and shareholders' equity | $ 783,534,568 | $ 754,082,929 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 75,000,000 | 75,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 64,826,864 | 64,441,244 |
Common stock, shares outstanding | 64,826,864 | 64,441,244 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interests | Total |
Beginning balance at Mar. 31, 2022 | $ 6,415 | $ 335,372,981 | $ 12,213,519 | $ (1,198,058) | $ 1,057,467 | $ 347,452,324 |
Beginning balance (in shares) at Mar. 31, 2022 | 64,150,186 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Share-based compensation | 2,103,715 | 2,103,715 | ||||
Stock option exercises | $ 6 | 288,545 | 288,551 | |||
Stock option exercises (in shares) | 56,466 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | $ 23 | (475,880) | (475,857) | |||
Vesting of restricted stock units, net of shares withheld for employee taxes (in shares) | 234,592 | |||||
Reclassification of liability-classified awards to equity-classified awards | 1,171,428 | 1,171,428 | ||||
Net income | 2,539,201 | 240,432 | 2,779,633 | |||
Other comprehensive loss | (3,657,271) | (3,657,271) | ||||
Ending balance at Mar. 31, 2023 | $ 6,444 | 338,460,789 | 14,752,720 | (4,855,329) | 1,297,899 | 349,662,523 |
Ending balance (in shares) at Mar. 31, 2023 | 64,441,244 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Share-based compensation | 2,584,043 | 2,584,043 | ||||
Stock option exercises | $ 6 | 288,537 | 288,543 | |||
Stock option exercises (in shares) | 56,466 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | $ 33 | (689,185) | (689,152) | |||
Vesting of restricted stock units, net of shares withheld for employee taxes (in shares) | 329,154 | |||||
Reclassification of liability-classified awards to equity-classified awards | 744,167 | 744,167 | ||||
Net income | 644,937 | 192,324 | 837,261 | |||
Other comprehensive loss | 1,057,596 | 1,057,596 | ||||
Ending balance at Mar. 31, 2024 | $ 6,483 | $ 341,388,351 | $ 15,397,657 | $ (3,797,733) | $ 1,490,223 | $ 354,484,981 |
Ending balance (in shares) at Mar. 31, 2024 | 64,826,864 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 837,261 | $ 2,779,633 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of intangible assets | 24,743,082 | 21,894,754 |
Depreciation of property, plant and equipment | 242,606 | 180,143 |
Share-based compensation | 3,386,543 | 3,202,642 |
Non-cash interest charges | 1,339,413 | 2,071,932 |
Loss on early extinguishment of debt | 914,040 | |
Loss (gain) on fair value of swaps | 1,124,770 | (2,765,082) |
Impairment of equity investment | 991,105 | |
Share of loss (earnings) of equity affiliates, net of tax | 100,000 | (34,131) |
Dividend from equity affiliates | 62,306 | |
Deferred income taxes | (220,936) | 5,250,590 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,971,515) | (6,044,931) |
Inventory and prepaid expenses | (842,393) | (1,417,051) |
Royalty advances | (2,745,666) | (9,913,746) |
Other assets and liabilities | 736,801 | (369,722) |
Accounts payable and accrued liabilities | 8,237,314 | 15,264,856 |
Income taxes payable | 234,165 | 127,491 |
Net cash provided by operating activities | 36,192,550 | 31,203,724 |
Cash flows from investing activities: | ||
Purchases of music catalogs | (50,127,625) | (71,824,744) |
Investments in affilitates | (200,000) | |
Purchase of property, plant and equipment | (225,677) | (406,402) |
Net cash used for investing activities | (50,553,302) | (72,231,146) |
Cash flows from financing activities: | ||
Proceeds from secured line of credit | 34,000,000 | 42,182,694 |
Repayments of secured line of credit | (16,000,000) | |
Proceeds from stock option exercises | 288,543 | 288,551 |
Taxes paid related to net share settlement of restricted stock units | (689,152) | (475,880) |
Deferred financing costs paid | (39,387) | (3,533,254) |
Net cash provided by financing activities | 17,560,004 | 38,462,111 |
Foreign exchange impact on cash | 30,687 | (346,905) |
Increase (decrease) in cash and cash equivalents | 3,229,939 | (2,912,216) |
Cash and cash equivalents beginning of period | 14,902,076 | 17,814,292 |
Cash and cash equivalents end of period | $ 18,132,015 | $ 14,902,076 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Mar. 31, 2024 | |
DESCRIPTION OF BUSINESS | |
DESCRIPTION OF BUSINESS | NOTE 1. DESCRIPTION OF BUSINESS Reservoir Media, Inc. (formerly known as Roth CH Acquisition II Co. (“ ROCC Company On July 28, 2021 (the “ Closing Date RHI Merger Agreement Merger Sub Business Combination Common Stock NASDAQ The Company’s activities are organized into two operating segments: Music Publishing and Recorded Music. Operations of the Music Publishing segment involve the acquisition of interests in music catalogs from which royalties are earned as well as signing songwriters to exclusive agreements which give the Company an interest in the future delivery of songs. The publishing catalog includes ownership or control rights to more than 150,000 musical compositions that span across historic pieces, motion picture scores and current award-winning hits. Operations of the Recorded Music segment involve the acquisition of sound recording catalogs as well as the discovery and development of recording artists and the marketing, distribution, sale and licensing of the music catalog. The Recorded Music operations are primarily conducted through the Chrysalis Records platform and Tommy Boy Music, LLC (“ Tommy Boy |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“ U.S. GAAP The following include significant accounting policies that have been adopted by the Company: Principles of Consolidation These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned subsidiaries. The Company records a noncontrolling interest in its consolidated balance sheets and statements of operations with respect to the remaining economic interests in majority-owned subsidiaries it does not own. All intercompany transactions and balances have been eliminated upon consolidation. The equity method of accounting is used to account for investments in entities in which the Company has the ability to exert significant influence over the investee’s operating and financial policies. Use of Significant Accounting Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. Significant estimates are used for, but not limited to, determining useful lives of intangible assets, intangible asset recoverability and impairment and accrued revenue. Actual results could differ from these estimates. Amounts Due to (from) Related Parties The Company has various shared services agreements with a shareholder and other affiliated entities under the control of its shareholder. These agreements cover services such as IT support, a sublease of office space, and re-billed services of staff who perform services across multiple entities. Amounts due to (from) this shareholder and other affiliated entities totaled $0 as of March 31, 2024 and $(22,500) as of March 31, 2023. Foreign Currencies The Company has determined the U.S. dollar to be the functional currency of the Company and certain subsidiaries as it is the currency of the primary economic environment in which the companies operate while other subsidiaries have been determined to have the British Pound as their functional currencies. Monetary assets and liabilities denominated in foreign currencies other than the functional currency are translated into the respective functional currencies at the exchange rate in effect at the balance sheet date and non-monetary assets and liabilities at the exchange rates in effect at the time of acquisition or issue. Revenues and expenses are translated at rates approximating the exchange rates in effect at the time of the transactions. All exchange gains and losses are included in operations. Financial statements of subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars using the current rate method. Under this method, assets and liabilities are translated at the rate of exchange in effect at the balance sheet date. Revenue and expenses are translated at the average rate of exchange for the fiscal year. Exchange gains and losses are deferred and reflected on the balance sheet in accumulated other comprehensive income and subsequently recognized in income upon substantial disposal of the net investment in the foreign operation. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Accounts Receivable Credit is extended to customers based upon an evaluation of the customer’s financial condition. The time between the Company’s issuance of an invoice and payment due date is not significant. Customer payments that are not collected in advance of the transfer of promised services or goods are generally due 30-60 days from the invoice date. Customer payments related to synchronization licenses often take longer to collect, but that does not typically impact the ultimate collectability. The Company monitors customer credit risk related to accounts receivable and, when deemed necessary, maintains a provision for estimated uncollectible accounts, which is estimated based on historical experience, aging trends and in certain cases, management judgments about specific customers. Based on this analysis, the Company did not record a provision for estimated uncollectible accounts as of March 31, 2024 or March 31, 2023. Concentrations of Credit Risk Customer credit risk represents the potential for financial loss if a customer is unwilling or unable to meet its agreed upon contractual payment obligations. Two customers accounted for approximately 34% of total accounts receivable as of March 31, 2024 and three customers accounted for approximately 43% of total accounts receivable as of March 31, 2023. No other single customer accounted for more than 10% of accounts receivable in either period. In the Music Publishing segment, the Company collects a significant portion of its royalties from global copyright collecting societies. Collecting societies and associations are generally not-for-profit organizations that represent composers, songwriters and music publishers. These organizations seek to protect the rights of their members by licensing, collecting license fees and distributing royalties for the use of the members’ works. The Company does not believe there is any significant collection risk from such societies and associations. In the Recorded Music segment, the majority of the revenue is collected from the Company’s distribution partners, rather than directly from the customers. These distribution partners primarily pay through the revenue to the Company on a monthly basis. The Company routinely assesses the financial strength of its distribution partners and the Company does not believe there is any significant collection risk. Acquisitions and Business Combinations In conjunction with each acquisition transaction, the Company assesses whether the transaction should follow accounting guidance applicable to an asset acquisition or a business combination. This assessment requires an evaluation of whether the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, resulting in an asset acquisition or, if not, resulting in a business combination. If treated as an asset acquisition, the assets are recorded on a relative fair value basis in accordance with the Company’s accounting policies and related acquisition costs are capitalized as part of the asset. In a business combination, the Company recognizes identifiable assets acquired, liabilities assumed, and non-controlling interests at their fair values at the acquisition date. Any consideration paid in excess of the net fair value of the identifiable assets and liabilities acquired in a business combination is recorded to goodwill and acquisition-related costs are expensed as incurred. Intangible Assets Intangible assets consist primarily of publishing and recorded music catalogs. Intangible assets are recorded at fair value in a business combination and relative fair value in an asset acquisition. Intangible assets are amortized over their expected useful lives using the straight-line method. The Company periodically reviews the carrying value of its amortizable intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the lives assigned may no longer be appropriate. To the extent the estimated future cash inflows attributable to the asset, less estimated future cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. If the Company determines that events and circumstances warrant a revision to the remaining period of amortization, an asset’s remaining useful life would be changed, and the remaining carrying amount of the asset would be amortized prospectively over that revised remaining useful life. Goodwill The Company had $402,067 of goodwill as of March 31, 2024 and 2023, which is classified with “Other assets” in the Company’s consolidated balance sheets. All of the goodwill arose in connection with an acquisition accounted for as a business combination and has been assigned to a reporting unit within the Music Publishing segment. There were no impairments, disposals or other acquisitions of goodwill in the fiscal years ended March 31, 2024 and 2023. Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company evaluates goodwill for potential impairment on an annual basis on the first day of the fiscal fourth quarter (January 1), or at other times during the year if events or circumstances indicate that it is more-likely-than-not (greater than 50%) that the fair value of a reporting unit is below the carrying amount. In reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to bypass the qualitative assessment for any reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount, the Company performs a quantitative goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount. If the fair value of the reporting unit is less than its carrying amount, the Company will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company performed its annual impairment testing of goodwill as of January 1, 2024 and no impairment was required. The Company’s impairment testing consisted of a qualitative assessment. Changes in market conditions, laws and regulations, and key assumptions could negatively impact the results of future impairment testing and could result in the recognition of an impairment charge. Investments in Equity Affiliates The Company accounts for investments in affiliates using the equity method of accounting when it has significant influence over an affiliate’s operations. The Company’s share of investee’s net income or loss and basis difference amortization is classified as “Interest and other income” in the consolidated statements of income. The Company also holds investments in equity securities of unconsolidated entities in which the Company is not able to exercise significant influence, that do not have readily determinable market values. The Company accounts for these investments using a measurement alternative that measures these securities at initial cost, minus any impairment, plus or minus changes resulting from observable price changes on a non-recurring basis. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3 with gains or losses, if any, classified as Other income (expense), net in the consolidated statements of loss (income). During the fiscal year ended March 31, 2024, the Company recognized an impairment charge of $991,105 to writedown one of these investments to its estimated fair value. Deferred Revenue Deferred revenue principally relates to fixed fees and minimum guarantees received in advance of the Company’s performance or usage by the licensee. Reductions in deferred revenue are a result of the Company’s performance under the contract or usage by the licensee. Deferred Finance Costs Deferred finance costs are amortized on an effective interest basis over the term of the related obligation. Deferred finance charges are netted against the loans. See Note 7, “ Secured Line of Credit Revenues The Company recognizes revenue when, or as, control of the promised services or goods is transferred to its customers and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods. Music Publishing Music Publishing revenues are earned in the form of royalties relating to the licensing of rights in musical compositions and the sale of published sheet music and songbooks. Royalties principally relate to amounts earned from the public performance of musical compositions, the mechanical reproduction of musical compositions on recorded media including digital formats and the use of musical compositions in synchronization with visual images. Music publishing royalties, except for synchronization royalties, are recognized when the sale or usage occurs. The most common form of consideration for publishing contracts is sales- and usage-based royalties. The collecting societies submit usage reports, typically with payment for royalties due, often on a quarterly or biannual reporting period, in arrears. Royalties are recognized as the sale or usage occurs based upon usage reports when these reports are available for the reporting period or estimates of royalties based on historical data, such as recent royalties reported, company-specific information with respect to changes in repertoire, industry information and other relevant trends when usage reports are not available for the reporting period. Synchronization revenue is recognized as revenue when control of the license is transferred to the customer. Recorded Music Revenues from the sale or license of Recorded Music products through digital distribution channels are recognized when the sale or usage occurs based on usage reports received from the customer. Digital licensing contracts are generally long-term with consideration in the form of sales- and usage-based royalties that are primarily received monthly. For certain licenses where the consideration is fixed and the intellectual property being licensed is static, revenue is recognized at the point in time when control of the licensed content is transferred to the customer. Revenues from the sale of physical Recorded Music products are recognized upon delivery, which occurs once the product has been shipped and control has been transferred. Principal versus Agent Revenue Recognition The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in a transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service. The Company is typically required to pay a specified portion of the fees, earnings, payments and revenues received from the exploitation of the underlying music compositions and recorded music to the original songwriter or recorded artist (the “ Royalty Costs Royalty Costs and Royalty Advances The Company incurs Royalty Costs that are payable to its songwriters and recording artists generated from the sale or license of its music publishing copyrights and recorded music catalog. Royalties are calculated using negotiated rates in accordance with the songwriter and recording artist contracts. Calculations are based on revenue earned or user/usage measures or a combination of these. There are instances where such data is not available to be processed and royalty cost calculations may be complex or involve judgments about significant volumes of data to be processed and analyzed. In some instances, the Company commits to pay its songwriters and recording artists royalties in advance of future sales. The Company accounts for these advances under the related guidance in the Financial Accounting Standards Board (the “ FASB ASC Entertainment—Music ASC 928 Share-Based Compensation Compensation expense related to the issuance of share-based awards to the Company’s employees and board of directors is measured at fair value on the grant date. The Company uses the Black-Scholes option pricing model to value stock options. The compensation expense for awards that vest over a future service period is recognized over the requisite service period on a straight-line basis. The Company recognizes share-based award forfeitures as they occur rather than estimating by applying a forfeiture rate. Earnings Per Share The consolidated statements of income present basic and diluted earnings per share (“ EPS Diluted EPS is computed similarly to basic EPS, except that the denominator is increased to include the number of additional shares for potential dilutive effects of stock options, restricted stock units (“ RSU’s Employee Benefit Plans The Company has a 401(k) retirement savings plan open to U.S. based employees who have completed three months of eligible service. The Company contributes $0.60 for every $1.00 of employee contributions up to a maximum of 6% of the employee’s salary based upon each individual participant’s election. Expenses totaled $220,681 and $188,727 for employer contributions to the 401(k) retirement savings plan in the fiscal years ended March 31, 2024 and 2023, respectively. Income Taxes Income taxes are determined using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the differences between the accounting bases of assets and liabilities and their corresponding tax basis. Deferred taxes are measured using enacted tax rates expected to apply when the asset is realized, or the liability is settled. A deferred tax asset is recognized when it is considered more likely than not to be realized. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing jurisdictions. Accordingly, the Company accrues liabilities when it believes that it is not more likely than not that it will realize the benefits of tax positions that it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with ASC 740-10. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense (benefit). Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s consolidated financial position but could possibly be material to the Company’s consolidated results of operations or cash flow in any given quarter or annual period. Companies subject to the Global Intangible Low-Taxed Income provision (“ GILTI Comprehensive Income (Loss) The Company reports in accordance with ASC Topic 220, “ Comprehensive Income ASC 220 other comprehensive income (loss) separately from capital stock and retained earnings in the shareholders’ equity section of a statement of financial position. Derivative Financial Instruments The Company’s interest rate swaps have not been designated as a hedging instrument and, therefore, are recognized at fair value at the end of each reporting period with changes in fair value recorded in the consolidated statements of income. Fair Value Measurement and Hierarchy The Company reports in accordance with ASC Topic 820, “ Fair Value Measurements and Disclosures ASC 820 i.e. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability and are based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 ––Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. ● Level 2 ––Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. ● Level 3 ––Valuations based on inputs that are unobservable and significant to the overall fair value measurement. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. See Note 14, “ Financial Instruments Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1993, as amended (the “ Securities Act JOBS Act Sarbanes-Oxley Act Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement declared effective under the Securities Act or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “ Exchange Act can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. Recent Accounting Pronouncements Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“ FASB ASU Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 CODM Accounting Standards Recently Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Mar. 31, 2024 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 3. REVENUE RECOGNITION For the Company’s operating segments, Music Publishing and Recorded Music, the Company accounts for a contract when it has legally enforceable rights and obligations and collectability of consideration is probable. The Company identifies the performance obligations and determines the transaction price associated with the contract. Revenue is recognized when, or as, control of the promised services or goods is transferred to the Company’s customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods. Certain of the Company’s arrangements include licenses of intellectual property with consideration in the form of sales- and usage-based royalties. Royalty revenue is recognized when the subsequent sale or usage occurs using the best estimates available of the amounts that will be received by the Company. The Company recognized revenue of $3,720,376 and $3,478,970 from performance obligations satisfied in previous periods for the fiscal years ended March 31, 2024 and 2023, respectively. Revenue recognized from performance obligations satisfied in previous periods for the fiscal year ended March 31, 2023 was impacted by an update to estimated Music Publishing royalties based on the Company’s estimate of effects arising from the July 2022 ruling by the U.S. Copyright Royalty Board (the “ CRB Disaggregation of Revenue The Company’s revenue consisted of the following categories during the fiscal years ended March 31, 2024 and 2023: Fiscal Year Ended March 31, 2024 2023 Revenue by Type Digital $ 51,572,052 $ 44,117,066 Performance 22,795,559 16,701,595 Synchronization 15,143,616 15,599,641 Mechanical 3,427,982 3,484,771 Other 3,254,100 3,930,875 Total Music Publishing 96,193,309 83,833,948 Digital 26,900,363 22,944,894 Physical 8,943,413 6,001,262 Neighboring rights 3,611,307 3,098,342 Synchronization 2,911,421 2,780,475 Total Recorded Music 42,366,504 34,824,973 Other revenue 6,295,877 3,627,609 Total revenue $ 144,855,690 $ 122,286,530 Fiscal Year Ended March 31, 2024 2023 Revenue by Geographical Location United States Music Publishing $ 56,252,521 $ 49,930,481 United States Recorded Music 23,254,535 19,103,665 United States other revenue 6,295,877 3,627,609 Total United States 85,802,933 72,661,755 International Music Publishing 39,940,788 33,903,467 International Recorded Music 19,111,969 15,721,308 Total International 59,052,757 49,624,775 Total revenue $ 144,855,690 $ 122,286,530 Only the United States represented 10% or more of the Company’s total revenues in the fiscal years ended March 31, 2024 and 2023. Music Publishing Music publishers act as copyright owners and/or administrators of the musical compositions and generate revenues related to the exploitation of musical compositions (as opposed to recorded music). Music publishers receive royalties from the use of the musical compositions in public performances, digital and physical recordings, and through synchronization (the combination of music with visual images). Performance revenues are received when the musical composition is performed publicly through broadcast of music on television, radio and cable and in retail locations ( e.g. e.g. Included in these revenue streams, excluding synchronization and other revenues, are licenses with performing rights organizations or collecting societies ( e.g The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction, and (ii) collected from customers. Recorded Music Recorded Music mainly involves selling, marketing, distribution and licensing of recorded music owned by the Company. Recorded Music revenues are derived from four main sources, which include digital, physical, synchronization and neighboring rights. Digital revenues are generated from the expanded universe of digital partners, including digital streaming services and download services. Digital licensing contracts are generally long-term with consideration in the form of sales- and usage-based royalties that are typically received monthly. Additionally, for certain licenses, including synchronization licenses, where the consideration is fixed and the intellectual property being licensed is static, revenue is recognized at the point in time when control of the licensed content is transferred to the customer. Physical revenues are generated from the sale of physical products such as vinyl, CDs and DVDs. The Company uses distribution partners to facilitate the sale of physical products. Revenues from the sale of physical Recorded Music products are recognized upon transfer of control to the customer, which typically occurs once the product has been shipped and the ability to direct use and obtain substantially all of the benefit from the asset have been transferred. In accordance with industry practice and as is customary in many territories, certain products, such as CDs and DVDs, are sold to customers with the right to return unsold items. Revenues from such sales are generally recognized upon shipment based on gross sales. Synchronization revenues represent royalties or fees for the right to use sound recordings in combination with visual images such as in films or television programs, television commercials and video games. In certain territories, the Company may also receive royalties when sound recordings are performed publicly through broadcast of music on television, radio and cable and in public spaces such as shops, workplaces, restaurants, bars and clubs. These public performance royalties on sound recordings are classified as “Neighboring rights” revenue. For fixed-fee contracts, revenue is recognized at the point in time when control of the licensed content is transferred to the customer. Royalty based contracts are recognized as the underlying sales or usage occurs. Deferred Revenue The following table reflects the change in deferred revenue during the fiscal years ended March 31, 2024 and 2023: Fiscal Year Ended March 31, 2024 2023 Balance at beginning of period $ 2,151,889 $ 1,103,664 Cash received during period 3,248,918 6,188,993 Revenue recognized during period (4,236,854) (5,140,768) Balance at end of period $ 1,163,953 $ 2,151,889 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Mar. 31, 2024 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 4. ACQUISITIONS In the ordinary course of business, the Company regularly acquires publishing and recorded music catalogs, which are typically accounted for as asset acquisitions. During the fiscal years ended March 31, 2024 and 2023, the Company completed such acquisitions totaling $46,488,896 and $71,501,353, respectively, inclusive of deferred acquisition payments. The Company did not complete any individually significant acquisition transactions during the fiscal years ended March 31, 2024 and 2023. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2024 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | NOTE 5. INTANGIBLE ASSETS Intangible assets subject to amortization consist of the following as of March 31, 2024 and 2023: 2024 2023 Intangible assets subject to amortization: Publishing and recorded music catalogs $ 769,648,966 $ 721,904,892 Artist management contracts 911,740 893,283 Gross intangible assets 770,560,706 722,798,175 Accumulated amortization (130,338,706) (105,393,434) Intangible assets, net $ 640,222,000 $ 617,404,741 Straight-line amortization expense totaled $24,743,082 and $21,894,754 in the fiscal years ended March 31, 2024 and 2023, respectively. The expected amortization expense of intangible assets for each of the five succeeding fiscal years and thereafter is as follows: Fiscal year ending March 31: 2025 $ 25,684,625 2026 25,684,625 2027 25,684,625 2028 25,684,625 2029 25,684,625 Thereafter 511,776,909 Total $ 640,200,032 |
ROYALTY ADVANCES
ROYALTY ADVANCES | 12 Months Ended |
Mar. 31, 2024 | |
ROYALTY ADVANCES | |
ROYALTY ADVANCES | NOTE 6. ROYALTY ADVANCES The Company made royalty advances totaling $17,290,321 and $22,883,884 during the fiscal years ended March 31, 2024 and 2023, respectively, recoupable from the writer’s or artist’s share of future royalties otherwise payable, in varying amounts. Advances expected to be recouped within the next twelve months are classified as current assets, with the remainder classified as noncurrent assets. The following table reflects the change in royalty advances during the fiscal years ended March 31, 2024 and 2023: 2024 2023 Balance at beginning of period $ 66,926,500 $ 57,012,754 Additions 17,290,321 22,883,884 Recoupments (14,441,256) (12,970,138) Balance at end of period $ 69,775,565 $ 66,926,500 |
SECURED LINE OF CREDIT
SECURED LINE OF CREDIT | 12 Months Ended |
Mar. 31, 2024 | |
SECURED LINE OF CREDIT | |
SECURED LINE OF CREDIT | NOTE 7. SECURED LINE OF CREDIT Long-term debt consists of the following as of March 31, 2024 and 2023: 2024 2023 Secured line of credit $ 335,828,410 $ 317,828,409 Debt issuance costs, net (5,036,803) (6,336,828) $ 330,791,607 $ 311,491,581 Credit Facilities Reservoir Media Management, Inc. (“ RMM RMM Credit Agreement Senior Credit Facility On December 16, 2022, RMM entered into an amendment (the “ Second Amendment RMM is required to pay an unused fee in respect of unused commitments under the Senior Credit Facility, if any, at a rate of 0.25% per annum. Substantially all tangible and intangible assets of the Company, RHI, RMM and the other subsidiary guarantors are pledged as collateral to secure the obligations of RMM under the RMM Credit Agreement. The RMM Credit Agreement contains customary covenants limiting the ability of the Company, RHI, RMM and certain of its subsidiaries to, among other things, incur debt or liens, merge or consolidate with others, make investments, make cash dividends, redeem or repurchase capital stock, dispose of assets, enter into transactions with affiliates or enter into certain restrictive agreements. In addition, the Company, on a consolidated basis with its subsidiaries, must comply with financial covenants requiring the Company to maintain (i) a fixed charge coverage ratio of not less than 1.10:1.00 for each four fiscal quarter period, and (ii) a consolidated senior debt to library value ratio of 0.45:1.00, subject to certain adjustments. If RMM does not comply with the covenants in the RMM Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Senior Credit Facility. The Senior Credit Facility also includes an “accordion feature” that permits RMM to seek additional commitments in an amount not to exceed $150,000,000 that would increase the Senior Credit Facility. As of March 31, 2024, the Senior Credit Facility had a borrowing capacity of $450,000,000, with remaining borrowing availability of $114,171,590. Interest Rate Swaps At March 31, 2024, RMM had the following interest rate swaps outstanding, under which it pays a fixed rate and receives a floating interest payment from the counterparty based on SOFR with reference to notional amounts adjusted to match the amended scheduled principal repayments pursuant to the Senior Credit Facility, which was originally based on LIBOR. Notional Amount at Pay Fixed Effective Date March 31, 2024 Rate Maturity March 10, 2022 $ 7,750,000 1.533 % September 2024 March 10, 2022 $ 87,561,337 1.422 % September 2024 December 31, 2021 $ 54,688,663 0.972 % September 2024 September 30, 2024 $ 100,000,000 2.946 % December 2027 September 30, 2024 $ 50,000,000 3.961 % December 2027 In February 2024, the Company entered into an interest rate swap in the amount of $50,000,000, which is reflected in the table above. This swap has an effective date of September 30, 2024, which coincides with the expiration of the Company’s existing swaps, and a maturity date of December 16, 2027, which corresponds to the maturity date of the loans advanced under the RMM Credit Agreement. The Company will pay a fixed rate of 3.961% and receive a floating interest from the counterparty based on SOFR with reference to notional amounts adjusted to match the original scheduled principal repayments pursuant to the indenture agreement. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Mar. 31, 2024 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 8. OTHER LIABILITIES The Company’s other current liabilities consist primarily of obligations related to certain asset purchases and acquisitions that are due within the next twelve months, which totaled $6,345,193 and $9,883,039 as of March 31, 2024 and March 31, 2023, respectively. As of March 31, 2024, the Company’s other non-current liabilities, which consist primarily of obligations related to certain asset purchases and acquisitions that are due more than a year in the future, are as follows: Fiscal year ending March 31: 2026 $ 212,624 2027 202,103 2028 157,978 Total $ 572,705 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 9. INCOME TAXES The following table presents domestic and foreign income before income taxes for the fiscal years ended March 31: 2024 2023 Domestic $ 3,339,484 $ 9,120,407 Foreign (2,167,419) (715,878) Income before income taxes $ 1,172,065 $ 8,404,529 The provision for income taxes consists of the following for the fiscal years ended March 31: 2024 2023 Current income taxes: U.S. federal $ 156,783 $ — State and local 653 9,942 Foreign 398,304 364,364 Total current 555,740 374,306 Deferred income taxes: U.S. federal 771,223 2,342,977 State and local (326,795) 78,178 Foreign (665,364) 2,829,435 Total deferred (220,936) 5,250,590 Income tax expense $ 334,804 $ 5,624,896 The Company has determined that undistributed earnings of certain non-U.S. subsidiaries will be reinvested for an indefinite period of time. The Company has both the intent and ability to indefinitely reinvest these earnings. Given its intent to reinvest these earnings for an indefinite period of time, the Company has not accrued a deferred tax liability on these earnings. A determination of an unrecognized deferred tax liability related to these earnings is not practicable. A reconciliation of the statutory tax rate to the effective rate is as follows for the fiscal years ended March 31: 2024 2023 Federal income tax statutory rate 21.0 % 21.0 % State and local income taxes, net of federal income tax benefit 5.1 % 2.5 % Foreign subsidiary earnings 15.2 % 3.5 % Remeasurement of deferred tax balances (34.6) % 39.0 % Return to provision adjustments 3.6 % (1.0) % Executive compensation 15.3 % 2.0 % Share-based compensation 2.0 % (0.1) % Other, net 1.0 % 0.0 % Effective income tax rate 28.6 % 66.9 % During the fiscal year ended March 31, 2024, the Company remeasured its state and local deferred tax liabilities in the United States due to a change in the estimated state and local effective tax rates resulting in a significant decrease in its effective tax rate. The decrease in the estimate of the applicable future tax rates used to measure the state and local deferred tax liabilities in the United States resulted in incremental tax benefit of $405,229 due to the decrease in the value of deferred tax liabilities. This benefit was partially offset by the impact of incremental tax expense of $247,750 during the fiscal year ended March 31, 2024 due to an impairment charge of $991,105 to writedown an equity investment in the United Kingdom to its estimated fair value, which is not deductible for United Kingdom income tax purposes. During the fiscal year ended March 31, 2023, the Company changed its estimate of the applicable tax rate used to measure its international deferred tax liabilities in the United Kingdom resulting in a significant increase in its effective tax rate. The increase in the estimate of the applicable future tax rate from 19% to 25% used to measure the international deferred tax liabilities in the United Kingdom resulted in incremental tax expense of $3,558,874 due to the increase in the value of deferred tax liabilities. The Company’s effective tax rate also may vary from period to period depending on, among other factors, the geographic and business mix of earnings and losses. These same and other factors, including history of pre-tax earnings and losses, are taken into account in assessing the ability to realize deferred tax assets. Significant components of the Company’s deferred income tax liability as of March 31, 2024 and 2023 are as follows: 2024 2023 Deferred tax assets: Net operating loss carryforward $ 597,724 $ 1,594,302 Interest expense carryforward 6,175,688 2,587,058 Lease liability 1,680,384 1,757,512 Compensation 547,122 387,001 Unrealized foreign exchange losses 162,182 148,397 Equity investment 22,252 — Total deferred tax assets 9,185,352 6,474,270 Deferred tax liabilities: Fixed assets and leasehold improvements (85,188) (93,673) Intangible assets (36,782,047) (33,689,442) Lease right of use (1,526,584) (1,663,528) Fair value of swaps (1,253,279) (1,553,150) Branch earnings (10,232) — Total deferred tax liabilities (39,657,330) (36,999,793) Net deferred tax liabilities $ (30,471,978) $ (30,525,523) As of March 31, 2024, the Company has income tax net operating loss carryforwards of $48,628,931 related to the U.S. operations. The Company has recorded a deferred tax asset of $597,724 reflecting the benefit of $48,628,931 in loss carryforwards. Such net operating loss carryforwards will expire as follows: Federal $ 676,160 No expiration date New York 46,447,569 2035 - 2042 California 269,682 2040 - 2042 Tennessee 1,235,520 2035 - 2038 Tax Uncertainties As of March 31, 2024, the Company has not recorded any unrecognized tax benefits. Tax Audits The Company and its eligible subsidiaries file a consolidated U.S. federal income tax return and applicable state and local income tax returns and non-U.S. income tax returns. The Company is subject to examination by federal, state and local, and foreign tax authorities. RMM’s Federal income tax returns for the years 2021 through 2023 are subject to examination by the Internal Revenue Service, and RMM’s state tax returns are subject to examination by the respective tax authorities for the years 2020 through 2023. Non-U.S. tax returns are subject to examination by the respective tax authorities for the years 2020 through 2023. The Company regularly assesses the likelihood of additional assessments by each jurisdiction and have established tax reserves that the Company believes are adequate in relation to the potential for additional assessments. Examination outcomes and the timing of examination settlements are subject to uncertainty. Although the results of such examinations may have an impact on the Company’s unrecognized tax benefits, the Company does not anticipate that such impact will be material to its consolidated financial position or results of operations. The Company does not expect to settle any material tax audits in the next twelve months. |
SUPPLEMENTARY CASH FLOW INFORMA
SUPPLEMENTARY CASH FLOW INFORMATION | 12 Months Ended |
Mar. 31, 2024 | |
SUPPLEMENTARY CASH FLOW INFORMATION | |
SUPPLEMENTARY CASH FLOW INFORMATION | NOTE 10. SUPPLEMENTARY CASH FLOW INFORMATION Interest paid and income taxes paid for the fiscal years ended March 31, 2024 and 2023 were comprised of the following: 2024 2023 Interest paid $ 17,467,938 $ 12,624,536 Income taxes paid $ 357,946 $ 315,617 Non-cash investing and financing activities for the fiscal years ended March 31, 2024 and 2023 were comprised of the following: 2024 2023 Acquired intangible assets included in other liabilities $ 1,110,722 $ 9,396,725 Reclassification of liability-classified awards to equity-classified awards $ 744,167 $ 1,171,428 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2024 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | NOTE 11. SHAREHOLDERS’ EQUITY Warrants As of March 31, 2024, the Company’s outstanding warrants included 5,750,000 publicly-traded warrants (the “ Public Warrants Private Warrants Warrants The Company may redeem the outstanding Public Warrants in whole, but not in part, at a price of $0.01 per warrant upon a minimum of 30 days’ prior written notice of redemption, if and only if the last sale price of Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the registered holders. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the warrants to do so on a cashless basis. In no event will the Company be required to net cash settle the warrant exercise. The Private Warrants are identical to the Public Warrants, except that the Private Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company evaluated the Warrants under ASC Topic 480, Distinguishing Liabilities from Equity ASC 480 Derivatives and Hedging ASC 815 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2024 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | NOTE 12. SHARE-BASED COMPENSATION 2021 Incentive Plan On July 28, 2021, in connection with the Business Combination, the Company adopted the Reservoir Media, Inc. 2021 Omnibus Incentive Plan (the “ 2021 Incentive Plan Business Combination, options previously granted under the Reservoir Holdings, Inc. 2019 Long Term Incentive Plan (the “ Previous RHI 2019 Incentive Plan Beginning on April 1, 2022 and ending on March 31, 2031, the aggregate number of shares of Common Stock that may be issued under the 2021 Incentive Plan will automatically increase by the lesser of (a) 3% of the total number of shares of Common Stock issued and outstanding on the last day of the preceding fiscal year on a fully diluted basis and assuming that all shares available for issuance under the 2021 Incentive Plan are issued and outstanding, or (b) such number of Shares determined by the Board. As of the effective date of the 2021 Incentive Plan, no further stock awards have been or will be granted under the Previous RHI 2019 Incentive Plan, and the Previous RHI 2019 Incentive Plan is no longer in effect. As of March 31, 2024, 11,555,584 shares of Common Stock were available for the Company to grant under the 2021 Incentive Plan. The 2021 Incentive Plan is administered by the compensation committee of the Board (the “ Compensation Committee Share-based compensation expense totaled $3,386,543 ($2,632,957, net of taxes) and $3,202,642 ($2,468,522, net of taxes) during the fiscal years ended March 31, 2024 and 2023, respectively. Share-based compensation expense is classified as “Administration expenses” in the accompanying consolidated statements of income. During the fiscal years ended March 31, 2024 and 2023, the Company granted restricted stock units (“ RSUs Restricted Stock Units During the fiscal year ended March 31, 2024 and 2023, the Company granted RSUs to certain employees and executive officers under the 2021 Incentive Plan. RSUs are not entitled to dividends or dividend equivalents and are not considered to be participating securities. During the fiscal year ended March 31, 2024, 233,783 of these RSUs vested, with the remainder scheduled to vest over the following 2.2 years.The Company records share-based compensation expense for RSUs based on their grant date fair value. The following is a summary of RSU activity for the fiscal year ended March 31, 2024: Weighted Total Average Number of Grant Date Shares Fair Value Outstanding as of April 1, 2023 469,137 $ 6.44 Granted 599,159 $ 6.19 Vested and settled (434,925) $ 6.59 Forfeited (4,734) $ 6.34 Outstanding as of March 31, 2024 628,637 $ 6.22 Outstanding RSUs as of April 1, 2023, and RSUs vested and settled during the fiscal year ended March 31, 2024 include 217,864 RSUs with a weighted average grant date fair value of $1,392,157 that vested on March 31, 2023 and converted to common shares in April 2023. Outstanding RSUs as of March 31, 2024, include 16,722 RSUs with a weighted average grant date fair value of $110,833 that vested on March 31, 2024, which will convert to common shares at future dates. The total fair value, determined as of the date of vesting, of RSUs vested and converted to common shares of the Company during the fiscal year ended March 31, 2024 was $2,705,309. Stock Options All stock options outstanding as of March 31, 2024 were granted under the Previous RHI 2019 Inventive Plan. Each option to acquire a share of RHI Common Stock issued under the Previous RHI 2019 Incentive Plan that was outstanding immediately prior to the consummation of the Business Combination became fully vested in accordance with the original terms of the awards. Each fully vested option was then converted into an option to purchase shares of Common Stock, with the number of shares of Common Stock subject to the options and exercise price adjusted commensurately with the Exchange Ratio of 196.06562028646, as defined in the Merger Agreement. Prior to vesting, the Company recorded share-based compensation expense for stock options based on the estimated fair value of the stock options on the date of the grant using the Black-Scholes option-pricing model. The following table is a summary of stock option activity under the Plan for the fiscal year ended March 31, 2024: Weighted Average Weighted Remaining Total Average Aggregate Contractual Number of Exercise Intrinsic Term Options Price Value (Years) Outstanding as of April 1, 2023 1,438,382 $ 5.11 Granted — Exercised (56,466) $ 5.11 Forfeited (101,034) $ 5.11 Outstanding as of March 31, 2024 1,280,882 $ 5.11 $ 3,612,087 5.1 Exercisable as of March 31, 2024 1,280,882 $ 5.11 $ 3,612,087 Vested or expected to vest as of March 31, 2024 1,280,882 $ 5.11 $ 3,612,087 5.1 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 13. EARNINGS PER SHARE The following table summarizes the basic and diluted earnings per common share calculation for the fiscal years ended March 31, 2024 and 2023: 2024 2023 Basic earnings per common share Net income attributable to Reservoir Media, Inc. $ 644,937 $ 2,539,201 Weighted average common shares outstanding - basic 64,757,112 64,339,703 Earnings per common share - basic $ 0.01 $ 0.04 Diluted earnings per common share Net income attributable to Reservoir Media, Inc. $ 644,937 $ 2,539,201 Weighted average common shares outstanding - basic 64,757,112 64,339,703 Weighted average effect of potentially dilutive securities: Effect of dilutive stock options and RSUs 498,789 493,504 Weighted average common shares outstanding - diluted 65,255,901 64,833,207 Earnings per common share - diluted $ 0.01 $ 0.04 Because of their anti-dilutive effect, 5,948,391 shares of Common Stock equivalents comprised of 60,891 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the fiscal year ended March 31, 2024. Because of their anti-dilutive effect, 5,914,526 shares of Common Stock equivalents comprised of 27,026 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the fiscal year ended March 31, 2023. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Mar. 31, 2024 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | NOTE 14. FINANCIAL INSTRUMENTS The Company is exposed to the following risks related to its financial instruments: (a) Credit Risk Credit risk arises from the possibility that the Company’s debtors may be unable to fulfill their financial obligations. Revenues earned from publishing and distribution companies are concentrated in the music and entertainment industry. The Company monitors its exposure to credit risk on a regular basis. (b) Interest Rate Risk The Company is exposed to market risk from changes in interest rates on its secured line of credit. As described in Note 7, “ Secured Line of Credit, The fair value of the outstanding interest rate swaps consisted of a $5,753,488 asset and a $121,374 liability at March 31, 2024, and a $6,756,884 asset as of March 31, 2023. Fair value is determined using Level 2 inputs, which are based on quoted prices and market observable data of similar instruments. The change in the unrealized fair value of the swaps during the fiscal year ended March 31, 2024 of $1,124,770 was recorded as a Loss on fair value of swaps. The change in the unrealized fair value of the swaps during the fiscal year ended March 31, 2023 of $2,765,082 was recorded as a Gain on fair value of swaps. (c) Foreign Exchange Risk The Company is exposed to foreign exchange risk in fluctuations of currency rates on its revenue from royalties, writers’ fees and its subsidiaries’ operations. (d) Financial Instruments Financial instruments not described elsewhere include cash, accounts receivable, accounts payable, accrued liabilities and borrowing under its secured line of credit. The carrying values of these instruments as of March 31, 2024 and 2023 do not differ materially from their respective fair values due to the immediate or short-term duration of these items or their bearing market-related rates of interest. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2024 | |
LEASES | |
LEASES | NOTE 15. LEASES The Company leases its business premises under operating leases which have expiration dates between 2025 – 2033. Many of the Company’s leases provide for future rent escalations and renewal options. Most of the Company’s leases also obligate the Company to pay, as lessee, variable lease cost related to an allocation of maintenance, insurance and property taxes. The Company defines lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on the Company’s assessment of relevant economic factors. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the Company, irrespective of when lease payments begin under the contract. The Company recognizes a right-of-use (“ ROU incremental borrowing rate applicable to each lease by reference to its outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows. The Company reassesses lease classification and remeasures ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost. The following is a summary of lease cost for the fiscal years ended March 31, 2024 and 2023: 2024 2023 Operating lease cost $ 1,502,702 $ 1,247,074 Variable lease cost 67,308 42,176 Total lease cost $ 1,570,010 $ 1,289,250 The following is a summary of supplemental cash flow information related to leases for the fiscal years ended March 31, 2024 and 2023: 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,215,691 $ 818,828 Right-of-use assets received in exchange for operating lease obligations $ 595,370 $ 6,084,281 Supplemental balance sheet information related to leases is as follows: Classification 2024 2023 Operating lease right-of-use assets Operating lease right of use assets, net $ 6,988,340 $ 7,356,312 Current portion of operating lease liabilities Other current liabilities $ 968,420 $ 700,755 Noncurrent portion of operating lease liabilities Operating lease liabilities, net of current portion $ 6,720,287 $ 7,072,553 The following is a summary of the weighted average remaining lease term and average discount rate for the Company’s operating leases as of March 31, 2024 and 2023: 2024 2023 Weighted-average remaining lease term (in years) 7.9 8.7 Weighted-average discount rate 6.1 % 6.0 % Maturities of the Company’s operating lease liabilities as of March 31, 2024 were as follows for the fiscal years ending March 31: Fiscal year ended March 31: 2025 $ 1,451,871 2026 1,392,887 2027 1,142,188 2028 952,370 2029 1,001,225 Thereafter 4,010,432 Total lease payments 9,950,973 Less: imputed interest (2,262,266) Present value of operating lease payments 7,688,707 Less: current portion of operating lease liabilities (968,420) Operating lease liabilities, net of current portion $ 6,720,287 |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 12 Months Ended |
Mar. 31, 2024 | |
CONTINGENCIES AND COMMITMENTS | |
CONTINGENCIES AND COMMITMENTS | NOTE 16. CONTINGENCIES AND COMMITMENTS (a) Royalty Advances The Company has committed to make payments for additional Royalty advances totaling $1,777,375 through March 2025, and a further $888,492 through March 2027, subject to certain conditions. These Royalty advances are to be used to fund future music compositions and sound recordings and will be recorded as royalty advances when paid. (b) Deferred Acquisition costs As discussed in Note 8, “ Other Liabilities (c) Litigation The Company is subject to claims and contingencies in the normal course of business. To the extent the Company cannot predict the outcome of the claims and contingencies or estimate the amount of any loss that may result, no provision for any contingent liabilities has been made in the consolidated financial statements. The Company believes that losses resulting from these matters, if any, would not have a material adverse effect on the financial position, results of operations or cash flows of the Company. All such matters which the Company concludes are probable to result in a loss and for which management can reasonably estimate the amount of such loss have been accrued for within these consolidated financial statements. The Company was involved in a royalty dispute, which commenced in 2017, and was settled in October 2023 (the “ Royalty Dispute |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Mar. 31, 2024 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 17. SEGMENT REPORTING The Company’s business is organized in two reportable segments: Music Publishing and Recorded Music. The Company identified its Chief Executive Officer as its CODM. The Company’s CODM evaluates financial performance of its segments based on several factors, of which the primary financial measure is operating income before depreciation and amortization (“ OIBDA The following tables present total revenue and reconciliation of OIBDA to operating income by segment for the fiscal years ended March 31, 2024 and 2023: Fiscal Year Ended March 31, 2024 Music Recorded Publishing Music Other Consolidated Total revenue $ 96,193,309 $ 42,366,504 $ 6,295,877 $ 144,855,690 Reconciliation of OIBDA to operating income: Operating income 9,918,187 13,215,678 1,441,959 24,575,824 Amortization and depreciation 18,966,453 5,924,558 94,677 24,985,688 OIBDA $ 28,884,640 $ 19,140,236 $ 1,536,636 $ 49,561,512 Fiscal Year Ended March 31, 2023 Music Recorded Publishing Music Other Consolidated Total revenue $ 83,833,948 $ 34,824,973 $ 3,627,609 $ 122,286,530 Reconciliation of OIBDA to operating income: Operating income 8,692,387 11,488,846 876,484 21,057,717 Amortization and depreciation 16,521,149 5,463,282 90,466 22,074,897 OIBDA $ 25,213,536 $ 16,952,128 $ 966,950 $ 43,132,614 The Company’s CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to the Company’s CODM, used to allocate resources or assess performance of the segments, and therefore, total segment assets have not been disclosed. Total long-lived assets by country are as follows as of March 31, 2024 and 2023: 2024 2023 United States $ 339,041 $ 352,433 United Kingdom 212,369 215,906 During the fiscal years ended March 31, 2024 and 2023, a single external customer accounted for 11% and 10%, respectively, of total revenues, and is included in both the Music Publishing and Recorded Music segments. No other customer accounted for more than 10% of revenue. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“ U.S. GAAP The following include significant accounting policies that have been adopted by the Company: |
Principles of Consolidation | Principles of Consolidation These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned subsidiaries. The Company records a noncontrolling interest in its consolidated balance sheets and statements of operations with respect to the remaining economic interests in majority-owned subsidiaries it does not own. All intercompany transactions and balances have been eliminated upon consolidation. The equity method of accounting is used to account for investments in entities in which the Company has the ability to exert significant influence over the investee’s operating and financial policies. |
Use of Significant Accounting Estimates | Use of Significant Accounting Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. Significant estimates are used for, but not limited to, determining useful lives of intangible assets, intangible asset recoverability and impairment and accrued revenue. Actual results could differ from these estimates. |
Amounts Due to (from) Related Parties | Amounts Due to (from) Related Parties The Company has various shared services agreements with a shareholder and other affiliated entities under the control of its shareholder. These agreements cover services such as IT support, a sublease of office space, and re-billed services of staff who perform services across multiple entities. Amounts due to (from) this shareholder and other affiliated entities totaled $0 as of March 31, 2024 and $(22,500) as of March 31, 2023. |
Foreign Currencies | Foreign Currencies The Company has determined the U.S. dollar to be the functional currency of the Company and certain subsidiaries as it is the currency of the primary economic environment in which the companies operate while other subsidiaries have been determined to have the British Pound as their functional currencies. Monetary assets and liabilities denominated in foreign currencies other than the functional currency are translated into the respective functional currencies at the exchange rate in effect at the balance sheet date and non-monetary assets and liabilities at the exchange rates in effect at the time of acquisition or issue. Revenues and expenses are translated at rates approximating the exchange rates in effect at the time of the transactions. All exchange gains and losses are included in operations. Financial statements of subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars using the current rate method. Under this method, assets and liabilities are translated at the rate of exchange in effect at the balance sheet date. Revenue and expenses are translated at the average rate of exchange for the fiscal year. Exchange gains and losses are deferred and reflected on the balance sheet in accumulated other comprehensive income and subsequently recognized in income upon substantial disposal of the net investment in the foreign operation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. |
Accounts Receivable | Accounts Receivable Credit is extended to customers based upon an evaluation of the customer’s financial condition. The time between the Company’s issuance of an invoice and payment due date is not significant. Customer payments that are not collected in advance of the transfer of promised services or goods are generally due 30-60 days from the invoice date. Customer payments related to synchronization licenses often take longer to collect, but that does not typically impact the ultimate collectability. The Company monitors customer credit risk related to accounts receivable and, when deemed necessary, maintains a provision for estimated uncollectible accounts, which is estimated based on historical experience, aging trends and in certain cases, management judgments about specific customers. Based on this analysis, the Company did not record a provision for estimated uncollectible accounts as of March 31, 2024 or March 31, 2023. |
Concentrations of Credit Risk | Concentrations of Credit Risk Customer credit risk represents the potential for financial loss if a customer is unwilling or unable to meet its agreed upon contractual payment obligations. Two customers accounted for approximately 34% of total accounts receivable as of March 31, 2024 and three customers accounted for approximately 43% of total accounts receivable as of March 31, 2023. No other single customer accounted for more than 10% of accounts receivable in either period. In the Music Publishing segment, the Company collects a significant portion of its royalties from global copyright collecting societies. Collecting societies and associations are generally not-for-profit organizations that represent composers, songwriters and music publishers. These organizations seek to protect the rights of their members by licensing, collecting license fees and distributing royalties for the use of the members’ works. The Company does not believe there is any significant collection risk from such societies and associations. In the Recorded Music segment, the majority of the revenue is collected from the Company’s distribution partners, rather than directly from the customers. These distribution partners primarily pay through the revenue to the Company on a monthly basis. The Company routinely assesses the financial strength of its distribution partners and the Company does not believe there is any significant collection risk. |
Acquisitions and Business Combinations | Acquisitions and Business Combinations In conjunction with each acquisition transaction, the Company assesses whether the transaction should follow accounting guidance applicable to an asset acquisition or a business combination. This assessment requires an evaluation of whether the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, resulting in an asset acquisition or, if not, resulting in a business combination. If treated as an asset acquisition, the assets are recorded on a relative fair value basis in accordance with the Company’s accounting policies and related acquisition costs are capitalized as part of the asset. In a business combination, the Company recognizes identifiable assets acquired, liabilities assumed, and non-controlling interests at their fair values at the acquisition date. Any consideration paid in excess of the net fair value of the identifiable assets and liabilities acquired in a business combination is recorded to goodwill and acquisition-related costs are expensed as incurred. |
Intangible Assets | Intangible Assets Intangible assets consist primarily of publishing and recorded music catalogs. Intangible assets are recorded at fair value in a business combination and relative fair value in an asset acquisition. Intangible assets are amortized over their expected useful lives using the straight-line method. The Company periodically reviews the carrying value of its amortizable intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the lives assigned may no longer be appropriate. To the extent the estimated future cash inflows attributable to the asset, less estimated future cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. If the Company determines that events and circumstances warrant a revision to the remaining period of amortization, an asset’s remaining useful life would be changed, and the remaining carrying amount of the asset would be amortized prospectively over that revised remaining useful life. |
Goodwill | Goodwill The Company had $402,067 of goodwill as of March 31, 2024 and 2023, which is classified with “Other assets” in the Company’s consolidated balance sheets. All of the goodwill arose in connection with an acquisition accounted for as a business combination and has been assigned to a reporting unit within the Music Publishing segment. There were no impairments, disposals or other acquisitions of goodwill in the fiscal years ended March 31, 2024 and 2023. Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company evaluates goodwill for potential impairment on an annual basis on the first day of the fiscal fourth quarter (January 1), or at other times during the year if events or circumstances indicate that it is more-likely-than-not (greater than 50%) that the fair value of a reporting unit is below the carrying amount. In reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to bypass the qualitative assessment for any reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount, the Company performs a quantitative goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount. If the fair value of the reporting unit is less than its carrying amount, the Company will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company performed its annual impairment testing of goodwill as of January 1, 2024 and no impairment was required. The Company’s impairment testing consisted of a qualitative assessment. Changes in market conditions, laws and regulations, and key assumptions could negatively impact the results of future impairment testing and could result in the recognition of an impairment charge. |
Investments in Equity Affiliates | Investments in Equity Affiliates The Company accounts for investments in affiliates using the equity method of accounting when it has significant influence over an affiliate’s operations. The Company’s share of investee’s net income or loss and basis difference amortization is classified as “Interest and other income” in the consolidated statements of income. The Company also holds investments in equity securities of unconsolidated entities in which the Company is not able to exercise significant influence, that do not have readily determinable market values. The Company accounts for these investments using a measurement alternative that measures these securities at initial cost, minus any impairment, plus or minus changes resulting from observable price changes on a non-recurring basis. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3 with gains or losses, if any, classified as Other income (expense), net in the consolidated statements of loss (income). During the fiscal year ended March 31, 2024, the Company recognized an impairment charge of $991,105 to writedown one of these investments to its estimated fair value. |
Deferred Revenue | Deferred Revenue Deferred revenue principally relates to fixed fees and minimum guarantees received in advance of the Company’s performance or usage by the licensee. Reductions in deferred revenue are a result of the Company’s performance under the contract or usage by the licensee. |
Deferred Finance Costs | Deferred Finance Costs Deferred finance costs are amortized on an effective interest basis over the term of the related obligation. Deferred finance charges are netted against the loans. See Note 7, “ Secured Line of Credit |
Revenues | Revenues The Company recognizes revenue when, or as, control of the promised services or goods is transferred to its customers and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods. Music Publishing Music Publishing revenues are earned in the form of royalties relating to the licensing of rights in musical compositions and the sale of published sheet music and songbooks. Royalties principally relate to amounts earned from the public performance of musical compositions, the mechanical reproduction of musical compositions on recorded media including digital formats and the use of musical compositions in synchronization with visual images. Music publishing royalties, except for synchronization royalties, are recognized when the sale or usage occurs. The most common form of consideration for publishing contracts is sales- and usage-based royalties. The collecting societies submit usage reports, typically with payment for royalties due, often on a quarterly or biannual reporting period, in arrears. Royalties are recognized as the sale or usage occurs based upon usage reports when these reports are available for the reporting period or estimates of royalties based on historical data, such as recent royalties reported, company-specific information with respect to changes in repertoire, industry information and other relevant trends when usage reports are not available for the reporting period. Synchronization revenue is recognized as revenue when control of the license is transferred to the customer. Recorded Music Revenues from the sale or license of Recorded Music products through digital distribution channels are recognized when the sale or usage occurs based on usage reports received from the customer. Digital licensing contracts are generally long-term with consideration in the form of sales- and usage-based royalties that are primarily received monthly. For certain licenses where the consideration is fixed and the intellectual property being licensed is static, revenue is recognized at the point in time when control of the licensed content is transferred to the customer. Revenues from the sale of physical Recorded Music products are recognized upon delivery, which occurs once the product has been shipped and control has been transferred. |
Principal versus Agent Revenue Recognition | Principal versus Agent Revenue Recognition The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in a transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service. The Company is typically required to pay a specified portion of the fees, earnings, payments and revenues received from the exploitation of the underlying music compositions and recorded music to the original songwriter or recorded artist (the “ Royalty Costs |
Royalty Costs and Royalty Advances | Royalty Costs and Royalty Advances The Company incurs Royalty Costs that are payable to its songwriters and recording artists generated from the sale or license of its music publishing copyrights and recorded music catalog. Royalties are calculated using negotiated rates in accordance with the songwriter and recording artist contracts. Calculations are based on revenue earned or user/usage measures or a combination of these. There are instances where such data is not available to be processed and royalty cost calculations may be complex or involve judgments about significant volumes of data to be processed and analyzed. In some instances, the Company commits to pay its songwriters and recording artists royalties in advance of future sales. The Company accounts for these advances under the related guidance in the Financial Accounting Standards Board (the “ FASB ASC Entertainment—Music ASC 928 |
Share-Based Compensation | Share-Based Compensation Compensation expense related to the issuance of share-based awards to the Company’s employees and board of directors is measured at fair value on the grant date. The Company uses the Black-Scholes option pricing model to value stock options. The compensation expense for awards that vest over a future service period is recognized over the requisite service period on a straight-line basis. The Company recognizes share-based award forfeitures as they occur rather than estimating by applying a forfeiture rate. |
Earnings Per Share | Earnings Per Share The consolidated statements of income present basic and diluted earnings per share (“ EPS Diluted EPS is computed similarly to basic EPS, except that the denominator is increased to include the number of additional shares for potential dilutive effects of stock options, restricted stock units (“ RSU’s |
Employee Benefit Plans | Employee Benefit Plans The Company has a 401(k) retirement savings plan open to U.S. based employees who have completed three months of eligible service. The Company contributes $0.60 for every $1.00 of employee contributions up to a maximum of 6% of the employee’s salary based upon each individual participant’s election. Expenses totaled $220,681 and $188,727 for employer contributions to the 401(k) retirement savings plan in the fiscal years ended March 31, 2024 and 2023, respectively. |
Income Taxes | Income Taxes Income taxes are determined using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the differences between the accounting bases of assets and liabilities and their corresponding tax basis. Deferred taxes are measured using enacted tax rates expected to apply when the asset is realized, or the liability is settled. A deferred tax asset is recognized when it is considered more likely than not to be realized. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing jurisdictions. Accordingly, the Company accrues liabilities when it believes that it is not more likely than not that it will realize the benefits of tax positions that it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with ASC 740-10. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense (benefit). Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s consolidated financial position but could possibly be material to the Company’s consolidated results of operations or cash flow in any given quarter or annual period. Companies subject to the Global Intangible Low-Taxed Income provision (“ GILTI |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company reports in accordance with ASC Topic 220, “ Comprehensive Income ASC 220 other comprehensive income (loss) separately from capital stock and retained earnings in the shareholders’ equity section of a statement of financial position. |
Derivative Financial Instruments | Derivative Financial Instruments The Company’s interest rate swaps have not been designated as a hedging instrument and, therefore, are recognized at fair value at the end of each reporting period with changes in fair value recorded in the consolidated statements of income. |
Fair Value Measurement and Hierarchy | Fair Value Measurement and Hierarchy The Company reports in accordance with ASC Topic 820, “ Fair Value Measurements and Disclosures ASC 820 i.e. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability and are based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 ––Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. ● Level 2 ––Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. ● Level 3 ––Valuations based on inputs that are unobservable and significant to the overall fair value measurement. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. See Note 14, “ Financial Instruments |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1993, as amended (the “ Securities Act JOBS Act Sarbanes-Oxley Act Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement declared effective under the Securities Act or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “ Exchange Act can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“ FASB ASU Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 CODM Accounting Standards Recently Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
REVENUE RECOGNITION | |
Schedule of revenue | Fiscal Year Ended March 31, 2024 2023 Revenue by Type Digital $ 51,572,052 $ 44,117,066 Performance 22,795,559 16,701,595 Synchronization 15,143,616 15,599,641 Mechanical 3,427,982 3,484,771 Other 3,254,100 3,930,875 Total Music Publishing 96,193,309 83,833,948 Digital 26,900,363 22,944,894 Physical 8,943,413 6,001,262 Neighboring rights 3,611,307 3,098,342 Synchronization 2,911,421 2,780,475 Total Recorded Music 42,366,504 34,824,973 Other revenue 6,295,877 3,627,609 Total revenue $ 144,855,690 $ 122,286,530 Fiscal Year Ended March 31, 2024 2023 Revenue by Geographical Location United States Music Publishing $ 56,252,521 $ 49,930,481 United States Recorded Music 23,254,535 19,103,665 United States other revenue 6,295,877 3,627,609 Total United States 85,802,933 72,661,755 International Music Publishing 39,940,788 33,903,467 International Recorded Music 19,111,969 15,721,308 Total International 59,052,757 49,624,775 Total revenue $ 144,855,690 $ 122,286,530 |
Schedule of change in deferred revenue | Fiscal Year Ended March 31, 2024 2023 Balance at beginning of period $ 2,151,889 $ 1,103,664 Cash received during period 3,248,918 6,188,993 Revenue recognized during period (4,236,854) (5,140,768) Balance at end of period $ 1,163,953 $ 2,151,889 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets subject to amortization | 2024 2023 Intangible assets subject to amortization: Publishing and recorded music catalogs $ 769,648,966 $ 721,904,892 Artist management contracts 911,740 893,283 Gross intangible assets 770,560,706 722,798,175 Accumulated amortization (130,338,706) (105,393,434) Intangible assets, net $ 640,222,000 $ 617,404,741 |
Schedule of expected amortization expense of intangible assets | Fiscal year ending March 31: 2025 $ 25,684,625 2026 25,684,625 2027 25,684,625 2028 25,684,625 2029 25,684,625 Thereafter 511,776,909 Total $ 640,200,032 |
ROYALTY ADVANCES (Tables)
ROYALTY ADVANCES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
ROYALTY ADVANCES | |
Schedule of royalty advances | 2024 2023 Balance at beginning of period $ 66,926,500 $ 57,012,754 Additions 17,290,321 22,883,884 Recoupments (14,441,256) (12,970,138) Balance at end of period $ 69,775,565 $ 66,926,500 |
SECURED LINE OF CREDIT (Tables)
SECURED LINE OF CREDIT (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
SECURED LINE OF CREDIT | |
Schedule of long-term debt | 2024 2023 Secured line of credit $ 335,828,410 $ 317,828,409 Debt issuance costs, net (5,036,803) (6,336,828) $ 330,791,607 $ 311,491,581 |
Schedule of interest rate swaps | Notional Amount at Pay Fixed Effective Date March 31, 2024 Rate Maturity March 10, 2022 $ 7,750,000 1.533 % September 2024 March 10, 2022 $ 87,561,337 1.422 % September 2024 December 31, 2021 $ 54,688,663 0.972 % September 2024 September 30, 2024 $ 100,000,000 2.946 % December 2027 September 30, 2024 $ 50,000,000 3.961 % December 2027 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
OTHER LIABILITIES | |
Schedule of other non-current liabilities | Fiscal year ending March 31: 2026 $ 212,624 2027 202,103 2028 157,978 Total $ 572,705 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
Schedule of income before income taxes of domestic and foreign | 2024 2023 Domestic $ 3,339,484 $ 9,120,407 Foreign (2,167,419) (715,878) Income before income taxes $ 1,172,065 $ 8,404,529 |
Schedule of components of provision for income taxes | 2024 2023 Current income taxes: U.S. federal $ 156,783 $ — State and local 653 9,942 Foreign 398,304 364,364 Total current 555,740 374,306 Deferred income taxes: U.S. federal 771,223 2,342,977 State and local (326,795) 78,178 Foreign (665,364) 2,829,435 Total deferred (220,936) 5,250,590 Income tax expense $ 334,804 $ 5,624,896 |
Schedule of reconciliation of the statutory tax rate to the effective rate | 2024 2023 Federal income tax statutory rate 21.0 % 21.0 % State and local income taxes, net of federal income tax benefit 5.1 % 2.5 % Foreign subsidiary earnings 15.2 % 3.5 % Remeasurement of deferred tax balances (34.6) % 39.0 % Return to provision adjustments 3.6 % (1.0) % Executive compensation 15.3 % 2.0 % Share-based compensation 2.0 % (0.1) % Other, net 1.0 % 0.0 % Effective income tax rate 28.6 % 66.9 % |
Schedule of components of the company's deferred income tax liability | 2024 2023 Deferred tax assets: Net operating loss carryforward $ 597,724 $ 1,594,302 Interest expense carryforward 6,175,688 2,587,058 Lease liability 1,680,384 1,757,512 Compensation 547,122 387,001 Unrealized foreign exchange losses 162,182 148,397 Equity investment 22,252 — Total deferred tax assets 9,185,352 6,474,270 Deferred tax liabilities: Fixed assets and leasehold improvements (85,188) (93,673) Intangible assets (36,782,047) (33,689,442) Lease right of use (1,526,584) (1,663,528) Fair value of swaps (1,253,279) (1,553,150) Branch earnings (10,232) — Total deferred tax liabilities (39,657,330) (36,999,793) Net deferred tax liabilities $ (30,471,978) $ (30,525,523) |
Schedule of expiry of net operating loss carry forwards | Federal $ 676,160 No expiration date New York 46,447,569 2035 - 2042 California 269,682 2040 - 2042 Tennessee 1,235,520 2035 - 2038 |
SUPPLEMENTARY CASH FLOW INFOR_2
SUPPLEMENTARY CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
SUPPLEMENTARY CASH FLOW INFORMATION | |
Schedule of interest paid and income taxes paid | 2024 2023 Interest paid $ 17,467,938 $ 12,624,536 Income taxes paid $ 357,946 $ 315,617 |
Schedule of non-cash investing and financing activities | 2024 2023 Acquired intangible assets included in other liabilities $ 1,110,722 $ 9,396,725 Reclassification of liability-classified awards to equity-classified awards $ 744,167 $ 1,171,428 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
SHARE-BASED COMPENSATION | |
Schedule of summary of RSU activity | Weighted Total Average Number of Grant Date Shares Fair Value Outstanding as of April 1, 2023 469,137 $ 6.44 Granted 599,159 $ 6.19 Vested and settled (434,925) $ 6.59 Forfeited (4,734) $ 6.34 Outstanding as of March 31, 2024 628,637 $ 6.22 |
Summary of stock option activity | Weighted Average Weighted Remaining Total Average Aggregate Contractual Number of Exercise Intrinsic Term Options Price Value (Years) Outstanding as of April 1, 2023 1,438,382 $ 5.11 Granted — Exercised (56,466) $ 5.11 Forfeited (101,034) $ 5.11 Outstanding as of March 31, 2024 1,280,882 $ 5.11 $ 3,612,087 5.1 Exercisable as of March 31, 2024 1,280,882 $ 5.11 $ 3,612,087 Vested or expected to vest as of March 31, 2024 1,280,882 $ 5.11 $ 3,612,087 5.1 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
Summary of basic and diluted (loss) earnings per common share calculation | 2024 2023 Basic earnings per common share Net income attributable to Reservoir Media, Inc. $ 644,937 $ 2,539,201 Weighted average common shares outstanding - basic 64,757,112 64,339,703 Earnings per common share - basic $ 0.01 $ 0.04 Diluted earnings per common share Net income attributable to Reservoir Media, Inc. $ 644,937 $ 2,539,201 Weighted average common shares outstanding - basic 64,757,112 64,339,703 Weighted average effect of potentially dilutive securities: Effect of dilutive stock options and RSUs 498,789 493,504 Weighted average common shares outstanding - diluted 65,255,901 64,833,207 Earnings per common share - diluted $ 0.01 $ 0.04 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
LEASES | |
Summary of lease cost | 2024 2023 Operating lease cost $ 1,502,702 $ 1,247,074 Variable lease cost 67,308 42,176 Total lease cost $ 1,570,010 $ 1,289,250 |
Schedule of supplemental cash flow information related to leases | 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,215,691 $ 818,828 Right-of-use assets received in exchange for operating lease obligations $ 595,370 $ 6,084,281 |
Summary of supplemental balance sheet information related to leases | Classification 2024 2023 Operating lease right-of-use assets Operating lease right of use assets, net $ 6,988,340 $ 7,356,312 Current portion of operating lease liabilities Other current liabilities $ 968,420 $ 700,755 Noncurrent portion of operating lease liabilities Operating lease liabilities, net of current portion $ 6,720,287 $ 7,072,553 |
Summary of weighted average remaining lease term and average discount rate | 2024 2023 Weighted-average remaining lease term (in years) 7.9 8.7 Weighted-average discount rate 6.1 % 6.0 % |
Schedule of maturities of company's operating lease liabilities | Fiscal year ended March 31: 2025 $ 1,451,871 2026 1,392,887 2027 1,142,188 2028 952,370 2029 1,001,225 Thereafter 4,010,432 Total lease payments 9,950,973 Less: imputed interest (2,262,266) Present value of operating lease payments 7,688,707 Less: current portion of operating lease liabilities (968,420) Operating lease liabilities, net of current portion $ 6,720,287 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
SEGMENT REPORTING | |
Schedule of total revenue and reconciliation of OIBDA to operating income by segment | Fiscal Year Ended March 31, 2024 Music Recorded Publishing Music Other Consolidated Total revenue $ 96,193,309 $ 42,366,504 $ 6,295,877 $ 144,855,690 Reconciliation of OIBDA to operating income: Operating income 9,918,187 13,215,678 1,441,959 24,575,824 Amortization and depreciation 18,966,453 5,924,558 94,677 24,985,688 OIBDA $ 28,884,640 $ 19,140,236 $ 1,536,636 $ 49,561,512 Fiscal Year Ended March 31, 2023 Music Recorded Publishing Music Other Consolidated Total revenue $ 83,833,948 $ 34,824,973 $ 3,627,609 $ 122,286,530 Reconciliation of OIBDA to operating income: Operating income 8,692,387 11,488,846 876,484 21,057,717 Amortization and depreciation 16,521,149 5,463,282 90,466 22,074,897 OIBDA $ 25,213,536 $ 16,952,128 $ 966,950 $ 43,132,614 |
Schedule of long lived assets by country wise | 2024 2023 United States $ 339,041 $ 352,433 United Kingdom 212,369 215,906 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | 12 Months Ended | ||
Mar. 31, 2024 item segment $ / shares | Mar. 31, 2023 $ / shares | Jul. 28, 2021 $ / shares | |
DESCRIPTION OF BUSINESS | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Number of operating segments | segment | 2 | ||
Music Publishing | |||
DESCRIPTION OF BUSINESS | |||
Minimum ownership or control rights | 150,000 | ||
Recorded Music | |||
DESCRIPTION OF BUSINESS | |||
Minimum ownership or control rights | 36,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Mar. 31, 2024 USD ($) customer | Mar. 31, 2023 USD ($) customer | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Amounts due to (from) this shareholder and other affiliated entities | $ 0 | $ (22,500) |
Goodwill | 402,067 | 402,067 |
Impairment of goodwill | 0 | 0 |
Disposals of goodwill | 0 | 0 |
Acquisitions of goodwill | 0 | 0 |
Impairment of equity investment | $ 991,105 | |
Eligible month of service | 3 months | |
Employer contribution, amount | $ 0.60 | |
Employer contribution, percent | 6% | |
Expenses for employer contribution | $ 220,681 | $ 188,727 |
Accounts receivable | Customer concentration risk | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of customers | customer | 2 | 3 |
Accounts receivable | Customer concentration risk | Two customers | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Concentration risk percentage | 34% | 43% |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue recognized from performance obligations satisfied in previous period | $ 3,720,376 | $ 3,478,970 |
Revenues | 144,855,690 | 122,286,530 |
United States | ||
Revenues | $ 85,802,933 | $ 72,661,755 |
Percentage of revenue more than Company's total revenue | 10% | 10% |
International | ||
Revenues | $ 59,052,757 | $ 49,624,775 |
Music Publishing | ||
Revenues | 96,193,309 | 83,833,948 |
Music Publishing | United States | ||
Revenues | 56,252,521 | 49,930,481 |
Music Publishing | International | ||
Revenues | 39,940,788 | 33,903,467 |
Recorded Music | ||
Revenues | 42,366,504 | 34,824,973 |
Recorded Music | United States | ||
Revenues | 23,254,535 | 19,103,665 |
Recorded Music | International | ||
Revenues | 19,111,969 | 15,721,308 |
Other revenue | ||
Revenues | 6,295,877 | 3,627,609 |
Other revenue | United States | ||
Revenues | 6,295,877 | 3,627,609 |
Digital | Music Publishing | ||
Revenues | 51,572,052 | 44,117,066 |
Digital | Recorded Music | ||
Revenues | 26,900,363 | 22,944,894 |
Performance | Music Publishing | ||
Revenues | 22,795,559 | 16,701,595 |
Synchronization | Music Publishing | ||
Revenues | 15,143,616 | 15,599,641 |
Synchronization | Recorded Music | ||
Revenues | 2,911,421 | 2,780,475 |
Mechanical | Music Publishing | ||
Revenues | 3,427,982 | 3,484,771 |
Physical | Recorded Music | ||
Revenues | 8,943,413 | 6,001,262 |
Neighboring rights | Recorded Music | ||
Revenues | 3,611,307 | 3,098,342 |
Other | Music Publishing | ||
Revenues | $ 3,254,100 | $ 3,930,875 |
REVENUE RECOGNITION - Change in
REVENUE RECOGNITION - Change in deferred revenue (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE RECOGNITION | ||
Balance at beginning of period | $ 2,151,889 | $ 1,103,664 |
Cash received during period | 3,248,918 | 6,188,993 |
Revenue recognized during period | (4,236,854) | (5,140,768) |
Balance at end of period | $ 1,163,953 | $ 2,151,889 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Publishing and recorded music catalogs | ||
ACQUISITIONS | ||
Total consideration transferred | $ 46,488,896 | $ 71,501,353 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Intangible assets subject to amortization: | ||
Gross intangible assets | $ 770,560,706 | $ 722,798,175 |
Accumulated amortization | (130,338,706) | (105,393,434) |
Intangible assets, net | 640,222,000 | 617,404,741 |
Amortization expense | 24,743,082 | 21,894,754 |
Publishing and recorded music catalogs | ||
Intangible assets subject to amortization: | ||
Gross intangible assets | 769,648,966 | 721,904,892 |
Artist management contracts | ||
Intangible assets subject to amortization: | ||
Gross intangible assets | $ 911,740 | $ 893,283 |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization expense of intangible assets (Details) | Mar. 31, 2024 USD ($) |
INTANGIBLE ASSETS | |
2025 | $ 25,684,625 |
2026 | 25,684,625 |
2027 | 25,684,625 |
2028 | 25,684,625 |
2029 | 25,684,625 |
Thereafter | 511,776,909 |
Total | $ 640,200,032 |
ROYALTY ADVANCES (Details)
ROYALTY ADVANCES (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
ROYALTY ADVANCES | ||
Balance at beginning of period | $ 66,926,500 | $ 57,012,754 |
Additions | 17,290,321 | 22,883,884 |
Recoupments | (14,441,256) | (12,970,138) |
Balance at end of period | $ 69,775,565 | $ 66,926,500 |
SECURED LINE OF CREDIT - Schedu
SECURED LINE OF CREDIT - Schedule of long-term debt (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Long-term Debt, by Current and Noncurrent | ||
Debt issuance costs, net | $ (5,036,803) | $ (6,336,828) |
Long-term portion | 330,791,607 | 311,491,581 |
Secured loan | ||
Long-term Debt, by Current and Noncurrent | ||
Secured line of credit | $ 335,828,410 | $ 317,828,409 |
SECURED LINE OF CREDIT - Credit
SECURED LINE OF CREDIT - Credit Facilities (Details) | 12 Months Ended | ||
Dec. 16, 2022 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
SECURED LINE OF CREDIT | |||
Loss on early extinguishment of debt | $ (914,040) | ||
Capitalized debt issuance costs | $ 5,036,803 | $ 6,336,828 | |
New Senior Credit Facility | |||
SECURED LINE OF CREDIT | |||
Fixed charge coverage ratio | 1.10 | ||
Consolidated senior debt to library value ratio | 0.45 | ||
Unused fee (in percent) | 0.25% | ||
Additional commitments | $ 150,000,000 | ||
Borrowing capacity | 450,000,000 | ||
Remaining borrowing availability | $ 114,171,590 | ||
RMM credit agreement | |||
SECURED LINE OF CREDIT | |||
Margin (in percent) | 0.25% | ||
Total leverage ratio | 7.50 | ||
Total leverage of cash balance | $ 20,000,000 | ||
Fixed charge coverage ratio | 1.10 | ||
Consolidated senior debt to library value ratio | 0.450 | ||
Loss on early extinguishment of debt | $ 914,000 | ||
Capitalized debt issuance costs | $ 3,500,000 | ||
Base rate | RMM credit agreement | |||
SECURED LINE OF CREDIT | |||
Margin (in percent) | 1% | ||
SOFR | RMM credit agreement | |||
SECURED LINE OF CREDIT | |||
Margin (in percent) | 2% | ||
Maximum | RMM credit agreement | |||
SECURED LINE OF CREDIT | |||
Aggregate amount | $ 450,000,000 | ||
Incremental borrowing available under the facility | 150,000,000 | ||
Minimum | RMM credit agreement | |||
SECURED LINE OF CREDIT | |||
Aggregate amount | 350,000,000 | ||
Incremental borrowing available under the facility | $ 50,000,000 |
SECURED LINE OF CREDIT - Intere
SECURED LINE OF CREDIT - Interest Rate Swaps (Details) - USD ($) | Mar. 31, 2024 | Feb. 29, 2024 |
Interest rate swaps | ||
SECURED LINE OF CREDIT | ||
Notional Amount | $ 50,000,000 | |
Pay Fixed Rate (in percent) | 3.961% | |
Senior Credit Facility | Interest rate swaps | ||
SECURED LINE OF CREDIT | ||
Notional Amount | $ 7,750,000 | |
Pay Fixed Rate (in percent) | 1.533% | |
Senior Credit Facility | Interest rate swap one | ||
SECURED LINE OF CREDIT | ||
Notional Amount | $ 87,561,337 | |
Pay Fixed Rate (in percent) | 1.422% | |
Senior Credit Facility | Interest rate swap two | ||
SECURED LINE OF CREDIT | ||
Notional Amount | $ 54,688,663 | |
Pay Fixed Rate (in percent) | 0.972% | |
Senior Credit Facility | Interest rate swap three | ||
SECURED LINE OF CREDIT | ||
Notional Amount | $ 100,000,000 | |
Pay Fixed Rate (in percent) | 2.946% | |
Senior Credit Facility | Interest rate swap four | ||
SECURED LINE OF CREDIT | ||
Notional Amount | $ 50,000,000 | |
Pay Fixed Rate (in percent) | 3.961% |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
OTHER LIABILITIES | ||
Other current liabilities | $ 6,345,193 | $ 9,883,039 |
Other non-current liabilities | ||
OTHER LIABILITIES | ||
2026 | 212,624 | |
2027 | 202,103 | |
2028 | 157,978 | |
Total | $ 572,705 |
INCOME TAXES - Domestic and for
INCOME TAXES - Domestic and foreign income before income taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAXES | ||
Income before income taxes | $ 1,172,065 | $ 8,404,529 |
Domestic | ||
INCOME TAXES | ||
Income before income taxes | 3,339,484 | 9,120,407 |
Foreign | ||
INCOME TAXES | ||
Income before income taxes | $ (2,167,419) | $ (715,878) |
INCOME TAXES - Provision for in
INCOME TAXES - Provision for income taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Current income taxes: | ||
U.S. federal | $ 156,783 | |
State and local | 653 | $ 9,942 |
Foreign | 398,304 | 364,364 |
Total current | 555,740 | 374,306 |
Deferred income taxes: | ||
U.S. federal | 771,223 | 2,342,977 |
State and local | (326,795) | 78,178 |
Foreign | (665,364) | 2,829,435 |
Total deferred | (220,936) | 5,250,590 |
Income tax expense | $ 334,804 | $ 5,624,896 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the statutory tax rate to the effective rate (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAXES | ||
Federal income tax statutory rate | 21% | 21% |
State and local income taxes, net of federal income tax benefit | 5.10% | 2.50% |
Foreign subsidiary earnings | 15.20% | 3.50% |
Impact of change in statutory rates on deferred tax balances | (34.60%) | 39% |
Return to provision adjustments | 3.60% | (1.00%) |
Executive compensation | 15.30% | 2% |
Share-based compensation | 2% | (0.10%) |
Other, net | 1% | 0% |
Effective tax rate (in percent) | 28.60% | 66.90% |
State and local deferred tax liabilities resulted in incremental tax benefit | $ 405,229 | |
Benefit was partially offset by the impact of incremental tax expense | 247,750 | |
Impairment of equity investment | $ 991,105 | |
Deferred tax liabilities on tax expense | $ 3,558,874 | |
Maximum | ||
INCOME TAXES | ||
Effective tax rate (in percent) | 25% | |
Minimum | ||
INCOME TAXES | ||
Effective tax rate (in percent) | 19% |
INCOME TAXES - Company's deferr
INCOME TAXES - Company's deferred income tax liability (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 597,724 | $ 1,594,302 |
Interest expense carryforward | 6,175,688 | 2,587,058 |
Lease liability | 1,680,384 | 1,757,512 |
Compensation | 547,122 | 387,001 |
Unrealized foreign exchange losses | 162,182 | 148,397 |
Equity investment | 22,252 | |
Total deferred tax assets | 9,185,352 | 6,474,270 |
Deferred tax liabilities: | ||
Fixed assets and leasehold improvements | (85,188) | (93,673) |
Intangible assets | (36,782,047) | (33,689,442) |
Lease right of use | (1,526,584) | (1,663,528) |
Fair value of swaps | (1,253,279) | (1,553,150) |
Branch earnings | (10,232) | |
Total deferred tax liabilities | (39,657,330) | (36,999,793) |
Net deferred tax liabilities | $ (30,471,978) | $ (30,525,523) |
INCOME TAXES - Net operating lo
INCOME TAXES - Net operating loss carry forwards (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
INCOME TAXES | ||
Net operating loss carryforwards | $ 48,628,931 | |
Deferred tax assets, net operating loss carryforward | 597,724 | $ 1,594,302 |
Unrecognized tax benefits | 0 | |
New York | ||
INCOME TAXES | ||
Operating loss carryforward subject to expiration | 46,447,569 | |
California | ||
INCOME TAXES | ||
Operating loss carryforward subject to expiration | 269,682 | |
Tennessee | ||
INCOME TAXES | ||
Operating loss carryforward subject to expiration | 1,235,520 | |
Federal | ||
INCOME TAXES | ||
Operating loss carryforward not subject to expiration | $ 676,160 |
SUPPLEMENTARY CASH FLOW INFOR_3
SUPPLEMENTARY CASH FLOW INFORMATION (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Interest paid | $ 17,467,938 | $ 12,624,536 |
Income taxes paid | 357,946 | 315,617 |
Acquired intangible assets included in other liabilities | 1,110,722 | 9,396,725 |
Reclassification of liability-classified awards to equity-classified awards | $ 744,167 | $ 1,171,428 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - Warrants | 12 Months Ended |
Mar. 31, 2024 D $ / shares shares | |
SHAREHOLDERS' EQUITY | |
Number of warrants outstanding | shares | 5,750,000 |
Number of warrants sold | shares | 137,500 |
Number of shares issuable per warrant | shares | 1 |
Exercise price of warrants | $ / shares | $ 11.50 |
Warrants expiration term (in years) | 5 years |
Redemption price per public warrant (in dollars per share) | $ / shares | $ 0.01 |
Minimum threshold written notice period for redemption of public warrants | 30 days |
Stock price trigger for redemption of public warrants (in dollars per share) | $ / shares | $ 18 |
Threshold trading days for redemption of public warrants | 20 days |
Threshold consecutive trading days for redemption of public warrants | 30 days |
Threshold number of business days before sending notice of redemption to warrant holders | D | 3 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | ||
Jul. 28, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | |
SHARE-BASED COMPENSATION | |||
Share-based compensation expense | $ 3,386,543 | $ 3,202,642 | |
Share-based compensation expense net of taxes | $ 2,632,957 | 2,468,522 | |
2021 Incentive Plan | |||
SHARE-BASED COMPENSATION | |||
Number of authorized shares of common stock were reserved for issuance | 9,726,247 | ||
Number of shares to purchase the common stock | 1,494,848 | ||
Threshold percentage on total number of shares issued and outstanding | 3% | ||
Number of shares of common stock available to grant | 11,555,584 | ||
Percentage of exercise price of stock | 100% | ||
Expiration term (in years) | 10 years | ||
Amounts reclassified from accounts payable and accrued liabilities to additional paid-in capital | $ 744,167 | $ 1,171,428 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Unit (Details) - RSU's - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
Total Number of Shares | |||
Outstanding as of April 1, 2023 | 469,137 | ||
Granted | 599,159 | ||
Vested and settled | (16,722) | (217,864) | (434,925) |
Forfeited | (4,734) | ||
Outstanding as of March 31, 2024 | 628,637 | 469,137 | 628,637 |
Weighted Average Grant Date Fair Value | |||
Outstanding as of April 1, 2023 | $ 6.44 | ||
Granted | 6.19 | ||
Vested and settled | 6.59 | ||
Forfeited | 6.34 | ||
Outstanding as of March 31, 2024 | $ 6.22 | $ 6.44 | $ 6.22 |
SHARE-BASED COMPENSATION - Re_2
SHARE-BASED COMPENSATION - Restricted Stock Unit - Narrative (Details) - RSU's - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
SHARE-BASED COMPENSATION | |||
Vested and settled | 16,722 | 217,864 | 434,925 |
Fair value of RSU's vested | $ 110,833 | $ 1,392,157 | $ 2,705,309 |
Employees And Executive Officers | 2021 Incentive Plan | |||
SHARE-BASED COMPENSATION | |||
Vested and settled | 233,783 | ||
RSU's vested, remaining term | 2 years 2 months 12 days |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock options (Details) - Employee Stock Option | 12 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Total Number of Options | |
Outstanding as of April 1, 2023 | shares | 1,438,382 |
Exercised | shares | (56,466) |
Forfeited | shares | (101,034) |
Outstanding as of March 31, 2024 | shares | 1,280,882 |
Exercisable as of March 31, 2024 | shares | 1,280,882 |
Vested or expected to vest as of March 31, 2024 | shares | 1,280,882 |
Weighted Average Exercise Price | |
Outstanding as of April 1, 2023 | $ / shares | $ 5.11 |
Exercised | $ / shares | 5.11 |
Forfeited | $ / shares | 5.11 |
Outstanding as of March 31, 2024 | $ / shares | 5.11 |
Exercisable as of March 31, 2024 | $ / shares | 5.11 |
Vested or expected to vest as of March 31, 2024 | $ / shares | $ 5.11 |
Outstanding as of March 31, 2024 | $ | $ 3,612,087 |
Exercisable as of March 31, 2024 | $ | 3,612,087 |
Vested or expected to vest as of March 31, 2024 | $ | $ 3,612,087 |
Outstanding as of March 31, 2024 | 5 years 1 month 6 days |
Vested or expected to vest as of March 31, 2024 | 5 years 1 month 6 days |
SHARE-BASED COMPENSATION - St_2
SHARE-BASED COMPENSATION - Stock options - Narrative (Details) | 12 Months Ended |
Mar. 31, 2024 | |
Common Stock | |
SHARE-BASED COMPENSATION | |
Exchange ratio | 196.06562028646 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic earnings per common share | ||
Net income attributable to Reservoir Media, Inc. | $ 644,937 | $ 2,539,201 |
Weighted average common shares outstanding - basic | 64,757,112 | 64,339,703 |
Earnings per common share - basic | $ 0.01 | $ 0.04 |
Diluted earnings per common share | ||
Net income attributable to Reservoir Media, Inc. | $ 644,937 | $ 2,539,201 |
Weighted average common shares outstanding - basic | 64,757,112 | 64,339,703 |
Weighted average effect of potentially dilutive securities: | ||
Effect of dilutive stock options and RSUs | 498,789 | 493,504 |
Weighted average common shares outstanding - diluted | 65,255,901 | 64,833,207 |
Earnings per common share - diluted | $ 0.01 | $ 0.04 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional information (Details) - shares | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EARNINGS PER SHARE | ||
Anti-dilutive effect of common shares | 5,948,391 | 5,914,526 |
RSU's | ||
EARNINGS PER SHARE | ||
Anti-dilutive effect of common shares | 60,891 | 27,026 |
Warrants | ||
EARNINGS PER SHARE | ||
Anti-dilutive effect of common shares | 5,887,500 | 5,887,500 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - Level 2 - Interest rate swaps - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
FINANCIAL INSTRUMENTS | ||
Fair value of the outstanding interest rate swaps - asset | $ 5,753,488 | $ 6,756,884 |
Fair value of the outstanding interest rate swaps - liability | 121,374 | |
Gain (loss) on changes in fair value of derivative instruments | $ (1,124,770) | $ 2,765,082 |
LEASES - Summary of lease cost
LEASES - Summary of lease cost (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
LEASES | ||
Operating lease cost | $ 1,502,702 | $ 1,247,074 |
Variable lease cost | 67,308 | 42,176 |
Total lease cost | $ 1,570,010 | $ 1,289,250 |
LEASES - Summary of supplementa
LEASES - Summary of supplemental cash flow and balance sheet information related to leases (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
LEASES | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,215,691 | $ 818,828 |
Right-of-use assets received in exchange for operating lease obligations | 595,370 | 6,084,281 |
Operating lease right of use assets, net | 6,988,340 | 7,356,312 |
Current portion of operating lease liabilities | $ 968,420 | $ 700,755 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Noncurrent portion of operating lease liabilities | $ 6,720,287 | $ 7,072,553 |
LEASES - Summary of weighted av
LEASES - Summary of weighted average remaining lease term and average discount rate (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
LEASES | ||
Weighted-average remaining lease term (in years) | 7 years 10 months 24 days | 8 years 8 months 12 days |
Weighted average discount rate | 6.10% | 6% |
LEASES - Maturities of the comp
LEASES - Maturities of the company's operating lease liabilities (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Fiscal year ended March 31: | ||
2025 | $ 1,451,871 | |
2026 | 1,392,887 | |
2027 | 1,142,188 | |
2028 | 952,370 | |
2029 | 1,001,225 | |
Thereafter | 4,010,432 | |
Total lease payments | 9,950,973 | |
Less: imputed payments | (2,262,266) | |
Present value of operating lease payments | 7,688,707 | |
Less: current portion of operating lease payments | (968,420) | $ (700,755) |
Operating lease liabilities, net of current portion | $ 6,720,287 | $ 7,072,553 |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2027 | Mar. 31, 2025 | |
CONTINGENCIES AND COMMITMENTS | |||
Advance royalty payment | $ 888,492 | $ 1,777,375 | |
Provision for any contingent liabilities | $ 0 | ||
Administration expenses to write-off | 2,700,000 | ||
Interest expense | $ 620,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended | |
Mar. 31, 2024 customer segment | Mar. 31, 2023 | |
SEGMENT REPORTING | ||
Number of reportable segments | segment | 2 | |
Number of customers accounted for more than 10% of Revenue | customer | 0 | |
Revenue | Customer concentration risk | Single Customer | ||
SEGMENT REPORTING | ||
Concentration risk percentage | 11% | 10% |
SEGMENT REPORTING - Total reven
SEGMENT REPORTING - Total revenue (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SEGMENT REPORTING | ||
Total revenue | $ 144,855,690 | $ 122,286,530 |
Reconciliation of OIBDA to operating income: | ||
Operating income | 24,575,824 | 21,057,717 |
Amortization and depreciation | 24,985,688 | 22,074,897 |
OIBDA | 49,561,512 | 43,132,614 |
Music Publishing | ||
SEGMENT REPORTING | ||
Total revenue | 96,193,309 | 83,833,948 |
Reconciliation of OIBDA to operating income: | ||
Operating income | 9,918,187 | 8,692,387 |
Amortization and depreciation | 18,966,453 | 16,521,149 |
OIBDA | 28,884,640 | 25,213,536 |
Recorded Music | ||
SEGMENT REPORTING | ||
Total revenue | 42,366,504 | 34,824,973 |
Reconciliation of OIBDA to operating income: | ||
Operating income | 13,215,678 | 11,488,846 |
Amortization and depreciation | 5,924,558 | 5,463,282 |
OIBDA | 19,140,236 | 16,952,128 |
Other | ||
SEGMENT REPORTING | ||
Total revenue | 6,295,877 | 3,627,609 |
Reconciliation of OIBDA to operating income: | ||
Operating income | 1,441,959 | 876,484 |
Amortization and depreciation | 94,677 | 90,466 |
OIBDA | $ 1,536,636 | $ 966,950 |
SEGMENT REPORTING - Long-lived
SEGMENT REPORTING - Long-lived assets (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
United States | ||
SEGMENT REPORTING | ||
Long-lived assets | $ 339,041 | $ 352,433 |
United Kingdom | ||
SEGMENT REPORTING | ||
Long-lived assets | $ 212,369 | $ 215,906 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 644,937 | $ 2,539,201 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |