Wed, May 15, 2:59 PM (72 days ago)
For the quarter ended March 31, 2024, Mills Music Trust reported receipts of $288,427 from EMI, up from $272,831 in the same period last year. Administrative expenses rose significantly to $132,887 from $92,356. Consequently, the balance available for distribution decreased to $155,586 from $184,896, resulting in a lower cash distribution per Trust Unit of $0.5601 compared to $0.6656 in the previous year. The Trust has ongoing disputes with EMI regarding the calculation of the Contingent Portion payments, which have led to underpayments totaling $1,354,309 since 2016. A special audit identified further discrepancies, but EMI has disputed these findings. Both parties have extended a tolling agreement suspending the statute of limitations for claims until December 31, 2024. The Trust's financial health is impacted by these unresolved disputes and the declining royalty income from its aging music catalog. Future income is uncertain due to potential changes in copyright laws and the expiration of copyrights. Currently, the Trust holds minimal cash reserves and has no significant unpaid administrative expenses.