Music Licensing Inc (SONG)

[P-Rawl]

"Jake P. Noch has been working on AI-based music since as early as 2017"

It's strange that the press-releases posing as interviews with him from 2017, when he was only 18 and still at high school, make no mention of AI-based music. Instead he was still pretending he was an ex-drug dealer and claiming how much money he'd made from his music.
https://thesource.com/2017/05/11/miamis-brick-god-sosa-releases-yop-sticks/

[trader59]

So, their S-1/A went effective, selling 2.5B shares (750M of them belonging to the CEO) for $.03. Good luck with that with a volume of just over 4k shares today.
Those 750M shares the CEO is selling also appeared on a Form 144 today. Not sure why, but it sure sticks out.

[trader59]

Lame attempt to get in on the latest buzzwords. AI generated music, can't wait to see the computer in concert...

You did see this company wants to sell stock, right? $75M of it at $0.03? 750M of the 2.5B shares to be sold are by Jake P Noch (the CEO) Family office...

[billy12]

Thanks for posting that. Awesome news.
Been holding this for a long time....
Sure would be nice to get even...and maybe even make some.

[Rainer]

'Music Licensing, Inc. (OTC:SONG) to Enhance AI-Based Music with ChatGPT Technology'

https://www.otcmarkets.com/stock/SONG/news/Music-Licensing-Inc-OTCSONG-to-Enhance-AI-Based-Music-with-ChatGPT-Technology?id=388693

[trader59]

Looks like the smokescreen accounting has become an issue. Claiming $432M of "accounts receivable" and then taking it off the balance sheet as "deferred income" was likely drawing unwanted regulatory attention... Now it'll be a footnote. The dumpster fire continues:

Music Licensing, Inc. Enhances Financial Transparency and Compliance with Balance Sheet Amendment

Naples, FL - Music Licensing, Inc. (OTC:SONG) is excited to announce that it will be amending its balance sheet to make the financial statements compliant with US Generally Accepted Accounting Principles (US GAAP) following a call with the Securities and Exchange Commission (SEC). The company expects to update its statements by removing the Accounts Receivable (A/R) and the corresponding offsetting liability of the A/R (deferred revenue) from the balance sheet.

The company would like to inform its shareholders that the following will be added as a footnote to the amended financial statements:

"The Company has signed Business License Agreements with 408 Customers as of December 31, 2021 to license, on a non-exclusive basis, non-dramatic public performances of their copyrighted musical compositions. After signing the agreements, and based on the agreement terms, the company issues invoices to its customers for Minimum and Base License Fees and Per Usage Fees based on the number of business locations. The company has not recognized the revenues in the financial statements as there is a doubt about the collectability of those revenues, and shall need legal action to determine the collectability percentage. Total amount of unrecognized revenues was $107,281,764 and $323,387,126 as of the end of 2020 and 2021 respectively."

The company would like to assure its shareholders that it is taking all necessary steps to ensure that its financial statements are accurate and compliant with US GAAP. The company will continue to fully enforce its licensing agreements and will book funds collected from the Music Licensing, Inc. agreement as revenue once payments are received or amounts are recovered from legal proceedings.

"We are excited about this amendment as it provides us with the opportunity to enhance our financial transparency and compliance with US GAAP, while also highlighting our commitment to collecting the revenue due to us," said Jake P. Noch, CEO of Music Licensing, Inc.

The company expects to release the updated financial statements within the next 30 days. Shareholders and investors are encouraged to visit the company's website for any updates or additional information.

[GratziPrego]

It does seem so much to be fluff. The Company appears to be merely a conduit to run payments through, where very little of the payments is actually paid to Music Licensing Inc, and almost all of the $432 Million Dollars or so goes to the Musical Artists.

It seems to be very misleading when they mentioned $432 Million Dollars, at first look. More Important is the need for Music Licensing Inc to Answer the Question: "How Much of the $432 Million Dollars" remains in Music Licensing Inc?

Also, regarding the lawsuit, it doesn't seem to be a realistic case that the Plaintiff has pursued as it seems that the Plaintiff appears to be Scapegoating OTC Markets instead of taking responsibility for Not doing enough Due Diligence before jumping in on the Investment.

But then again, maybe Plaintiff has a Good Case where OTC Markets should be more on top of monitoring, and preventing misleading information from being disseminated to the Public to Protect Investors.

[trader59]

It's fluff. Won't make a bit of difference down the road. If you look at the company's balance sheet with that $432M of "accounts receivable" (products/services rendered but not yet paid for) offset by $432M of "deferred income (products/services paid for, but not yet rendered), even the whole of the OTC isn't buying the smokescreen or willing to join in. Plus every news they issue is either about stock machinations or a new lawsuit. Makes it easy to stay far far away.

[GratziPrego]

You make a Good Point...though maybe by introducing SONG to more potential Investors, Globally, it could generate nice share price increases for SONG Shareholders down the road?

[trader59]

It’s over in Europe, isn’t it? What good does that do?

[GratziPrego]

It's NOT the NASDAQ for Big Companies but rather "Nasdaq First North Growth Market" for "Small and Medium-Sized Growth Companies"

"Nasdaq First North Growth Market is a Multilateral Trading Facility (MTF) with SME Growth Market status and does not have the legal status of a regulated market. Regulated market is a term used in the Markets in the Financial Instruments Directive (MiFID) and are markets authorized by national competent authorities."

Many refer to Nasdaq First North Growth Market as an "Alternative Exchange"

https://www.nasdaq.com/solutions/nasdaq-first-north-growth-market

Here, in this link below, are some examples of Companies listed in this type of Alternative Exchange:
https://www.nasdaqomxnordic.com/aktier/listed-companies/first-north

[loanshark007]

That is exactly why I'm laughing at this stupidity SONG.

[trader59]

They aren't uplisting. That's just typical OTC rhetoric, and "exploring" a FS on a stock already trading in the pennies sure isn't going to get them anywhere near the listing criteria.
I'd love to see them put in an application, though. That'd be fun. Would love to see them explain to NASDAQ how they have $432M of "accounts receivable" offset with $432M of "deferred income."

[foxi]

In a forward split, more shares are created while the market cap remains the same. So no value is gained or lost but each share is worth less money than before.

Normally, Nasdaq uplist minimum bid price is $4/share. Is that the same for Nasdaq First North Growth Market? Will creating more shares make it harder to uplist?

https://www.investopedia.com/ask/answers/what-stock-split-why-do-stocks-split/

https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5500-series

[loanshark007]

"Potential Forward Stock Split or Dividend, and Plans to List on Nasdaq"

No shortage of LOL's in OTC land.

[trader59]

Ever notice how all their "news" is either about messing with the stock or about a new lawsuit or arbitration?

[Drugdoctor]

OMG - they are not going to do a forward split... this describes a REVERSE SPLIT. Are they all idiots?

The company is considering a 1 for 5 forward stock split ??? to increase liquidity, tighten the bid/ask spread, and increase trading volume. It is also exploring the possibility of issuing a dividend to shareholders in the form of a new class of common stock with identical rights as the current class. Music Licensing, Inc. (OTC: SONG) plans to file another Form 211 with FINRA to allow both classes of common stock to be publicly traded.

[GratziPrego]

Agree that It sure doesn't seem that the Lawsuit will Go Anywhere.

This Stock Wil Probably Die.
(Again We Wish for Great News and for the Stock to Go Up in Value. It just doesn't seem like it's Going Anywhere...It just seems to be Doomed)

Best Wishes,
Gratzi

[trader59]

The lawsuit, I assume, is the action they filed against OTC Link, and it isn't going anywhere. They bought a shell to "merge" into, and it is up to the buyer to do their due diligence and make sure everything is good. The only possible lawsuit they'd have would be against the seller if something was purposely hidden or misrepresented, but that should also be covered in warranty clauses (assuming they didn't screw that up, too) of the acquisition agreement and liability would be limited to the purchase price.

[GratziPrego]

Therefore SONG Expected to Slip Down Even Further...Downward Spiral...Be Ready!

RE: Stock Symbol: SONG - It's GOING DOWN!
(Not Financial Advice, and We Don't Wish for SONG to Go Down...Just Saying, Based on Nothing Impressive Seems to Be Happening Now, or Doesn't Look Like Much Ahead to Look Forward to...Unless the Lawsuit Goes Well which could make SONG Massively Surge Upward)

Any Thoughts?

Best Wishes,
Gratzi

[trader59]

And... they've filed a registration to sell 2.5B shares at 3 cents per, and still talking about doing a FS because, well, I guess because other OTC companies have gotten successful pumps from FS news.
When the OTC considers your stock risky and un-pump-worthy, it's a sign.

[cruecu]

You know these kids love trips. They don’t understand share structure. They just want more shares

[trader59]

So, now we're talking about a 30:1 FS on a stock trading for 4 cents (driving the PPS down near trips) because....?
And, we're filing an arbitration against OTC link for booting them to the expert market because the financials were hosed in the NUVG days. Pretty sure FINRA is gonna tell him he should have done his DD...

https://t.co/pyOQuc7exI

[Renee]

Nuvus Gro Corp., NUVG, changed to Music Licensing Inc., SONG:

https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes

[GratziPrego]

Anyone here feel that the NUVG Stock Price Will Fly Up Soon? Lol!

Best Wishes,

Gratzi

[cruecu]

It’s hilarious how bad this dude is

[trader59]

Clueless...
A day after getting off the expert market, this company tosses up a Reg A offering that INCLUDES all the stock that was awarded to the owners of Pro Music Rights so that they can be sold/dumped. It registers an aggregate of $75M (not a typo) of stock at a PPS of $0.0064 per share (current PPS is $0.0309, $22M of that is the stock that the company insiders awarded to themselves.
And they think folks are going to buy into that crap, even the most imaginative OTC newbs are going to see straight through it.

https://www.otcmarkets.com/filing/html?id=16166574&guid=56z-kn_HezzAc3h

[trader59]

Probably the same reason they had to withdraw their S-1 offering, auditor probably bowed up on their questionable accounting, putting in $432M of "accounts receivable" and then turning around an taking it back off the balance sheet as "deferred income." Can't do that.

[Gurlik]

https://twitter.com/MaxInvestor89/status/1575273925939953664

one reason may of course be the lack of an audit of the financial report

[trader59]

Keeps getting better...
Booted to the expert market for delinquent SEC reporting. Not exactly sure why, but I'd bet the RM invalidated the information in the previous annual report, and they filed a quarterly on the OTC Markets showing the full year Pro Music Rights that was unaudited.
Like watching a dumpster fire.

[cruecu]

It’s all nonsense though because the float is still good and he’s not diluting. Weird raise there with no explanation. I’m not saying people will care anytime soon, but it was getting to a nice price for the float.

[trader59]

Form 1-U filed, update to the A/S from 5B to 20B shares....

Sure knows how to reel in those penny players....

[GratziPrego]

Nothing seems to be going on, ergo No Volume.

Also, it seems Pretty Silly How the Assets Mainly Comprised of Accounts Receivable of about $432.5 Million Dollars which is about the Same as the Deferred Income (Liability)

The Announcement of the Value Per Share (0.12 per share, right?) doesn't seem to have Integrity as it Ignores the Liability Portion which essentially Offsets the Assets Portion.

We Feel that NUVG is No Way Near Worth 0.12 per share, and that the Press Releases Seems, In Our Opinion, to Be Misleading...NUVG Seems to be Worth Much Less than 0.12 per share.

Can anyone Prove Otherwise?

If Yes, Please Speak Up...as We would surely appreciate some Clarity and Correction of Our "View from the Cheap Seats".

Best Wishes,

Gratzi

[trader59]

Weird.
First, PMR tried to do an S-1. I looked through the original and revisions, and they hadn't put in the 2 years of audited financials that are required. They withdrew that S-1.
Then they did a Reg A offering to sell some stock to somebody.
Then they decided to RM into this shell. When they published their financials, they showed $432M of "accounts receivable" offset by $432M of "deferred income" on the balance sheet. Accounts receivable are usually amounts owed to the company for services/products delivered and billed, but not yet paid for. Deferred income is usually where someone has paid in advance, but the company hasn't yet delivered the products or services. To show receivables for products/services you have not delivered isn't OK, and the amounts are humorous, at best. It's no wonder the financial reports remain unaudited.
NUVG is sitting at 6 cents, and the CEO awarded himself 3.5B shares, or $210M worth, for his ownership in a company that had real income of $35k for the quarter published.
It's no wonder even the OTC isn't buying this.

[billy12]

No volume? Is something going on?

[cruecu]

Meh. Wouldn’t really give it that much credit because no one gives a shit about this anymore. Look at the dollar volume. The worst ones are the ones where they just keep buying up the dilution and refuse to admit that’s what it is. This is just sitting in one spot.

[Buckey]

oh boy. I retired from Bashing as contrary to popular belief it does not pay well. Matter of fact it does not pay at all.

This one brings back so many memories of all the grandiose ones of ridiculous revenues etc. I think it 270 Million market cap

320 million in sales and 300 Million in assets,

here is the reality. This is all complete utter bullshit. seen 100 of these and 100 were a lie

[trader59]

So one pinky sues another pinky (and a dead one at that) and wins barely enough to cover their lawyers, then tweets about the big news that it is.
At least it’s consistent.

[i_like_bb_stock]

news judgement won https://www.globenewswire.com/news-release/2022/08/30/2506872/0/en/Industry-Market-Leader-Pro-Music-Rights-Inc-OTC-NUVG-Secures-Judgment-Against-Ayujoy-Herbals-OTC-AJOY-f-k-a-Groupe-Athena-Regarding-Music-Licensing-Agreement.html

[cruecu]

The otc doesn’t give a shit about market cap

[trader59]

Because nobody believes that crap.

[dlsmoove-64]

I was Watching the Ticker Symbol on My CNBC And MSN market Apps and NUVG has A market Capital of $290 Million but it hasn’t Gone up. I’m wondering Why?

[cruecu]

If he really doesn’t dilute any of the shares added to the AS, this will absolutely pop back up at some point. But who knows when. I’m sure it’ll be random. Which is half the problem. I have no interest in sitting in this with dead money until that happens

[trader59]

It is so blatantly obvious on this one that I doubt there’ll be any improvement, ever. This one has been botched so badly it is unrecoverable, yet the company pumping is relentless and clearly trying to find some fairy tale that’ll move some stock for somebody. Hasn’t said a word about new stuff for the company, it is 100% trying to paint the stock. Wonder who’s wanting to sell?
I say unrecoverable because I cannot see the OTC taking the risk that there won’t be some completely unexpected out of left field tweet that’ll tank the stock.

[horst]

And really it doesn't matter from a shareholder perspective how much they bring in for royalties. It's pretty substantial, but only a fraction of a fraction of that goes to the bottom line of the company. They collect royalties so they can distribute them to rights holders for a small administrative fee. The royalties shouldn't really be listed as assets unless there's a corresponding almost identical liability.

[trader59]

Not only that, he’s using his lawyer’s office address as the corporate address.

[P-Rawl]

As "one of the world's largest music licensing companies" appears to be mainly a list of auto-generated artist names with auto-generated titles I don't think there are many royalties to pay out. I've just taken these "artist" names from Jake's website:
Pianissimo
Prestissimo
PeddlingFlat
PocoAPoco
Phrasepuff12
Polyphony
Pentatonic
PigskinSharp
PotheadTonic
Prestocherst
Phraseja223
Pizzicato
Pitchba10
ProkopRitard
PepsilLegato
PkmnvictornOctave
PamphyliaTempo
Prestoreamxxx
Pianolayssmc

Pizzicato have 5924 different songs with titles such as:
hew sf, grub ce, torr mu, bah car, pe aria, ch scalp, altar ab,

It probably explains why "one of the world's largest music licensing companies" is operating with just one employee. Jake.

[cruecu]

Maybe Jake will get better the next time he tries to run a ticker. But the track record says probably not.

[horst]

Yep, accounts receivable for royalties,which are then payable to artists/songwriters/publishers, aren't the kind of "assets" that should bring any real value to shareholders. As a PRO, the company collects and then distributes royalties to rights holders. The company should take just enough of a piece of the pie to cover their administrative costs, but PROs should never be oozing in profits for shareholders, no matter how much they collect in royalties. If there's much of a surplus, it means they're not paying out enough to rights holders. NUVG is taking a tiny percentage, so they're acting responsibly in this regard. But it's disingenuous at best to PR income related to royalties as "shareholder value." Once collected, the vast majority of royalties are distributed: that's the entire point of a performance rights organization. That's why NUVG only lists revenue as $35K and a net loss of -$54K on the latest financials. The reality is they're barely skimming anything off the top from these royalties, which is good for rights holders, but it also means there's no shareholder value to speak of. Since the contracts and terms are in place already, they won't change the biz model, which means they'll probably start selling shares to make up their shortfall.

ASCAP and BMI are both not-for-profit, because there shouldn't be a profit motive for PROs.

[trader59]

Nothing like these $8-9 trades to move the PPS around.
Must be a whale.