Music Licensing Inc (SONG)

[QTRADERQ]

Your use of the word "claiming" is misleading.

Claiming over $300M of "accounts receivable" from "licensing" music rights.

Here are the "AUDITED NUMBERS" from the S-1 and the recent tweet by the CEO.

12/31/20 - Accounts Receivable balance - $107M
12/31/21 - Accounts Receivable balance - $323M
05/31/22 - Accounts Receivable balance - $414M



Here is a full description of what makes up Accounts Receivable. The bulk of it IS NOT "licensing music rights", as you claimed.


AUDITED FINANCIAL STATEMENT(S)
For the year(s) ended December 31, 2019, 2020 and 2021, Pro Music Rights, Inc has been audited and received UNQUALIFIED AUDIT OPINIONS which is the "Gold Standard" for a client.

Furthermore, and this is key.. Pro Music Rights auditor said:

In our opinion, the financial statements

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2029/b],

That means the $323M as of Y/E 2021, and $107M as of Y/E 2020 were collectible based on the audit tests the auditor performed.

What were the audit tests the auditor performed?

From my professional experience as a retired CPA, they include sending "Independent Audit Confirmations" to some or all of the company's which Pro Music Rights billed for Accounts Receivables (A/R). When the A/R confirmation is returned.. if the customer disagrees with the amount owed.. THEN it is investigated by the auditor. If after reviewing the confirmations, the auditor can use his professional judgement and record an estimate of what portion of the Accounts Receivable is NOT collectible, and should be 'written off' as uncollectible. (That is called making an allowance for doubtful accounts, In PMR's audits, the auditor recorded -0- for doubtful accounts.)

I'll say it again since it's so important to understand. For the year-ended 2018, 2019, 2020 and 2021 audits, the auditor DID NOT record any 'Allowance for Doubtful Accounts' on the Balance Sheet. That means $414M in Accounts Receivables will be collected and recorded as revenue in the future. End of story.

You can "CLAIM" whatever you want about the $323M in Accounts Receivables as of 12/31/21, but you have not performed the audit yourself... a Certified Public Account has! They have included their Audit Opinion with the financial statements and can be sued by unintended third parties (that includes banks, you and me).

LASTLY, and this is HUGE.

(Actually, BEYONG HUGE. I'm surprised this has not been mentioned on IHUB yet. Prepare for your head to EXPLODE lol.)

The auditor DID NOT include a 'Going Concern' explanatory paragraph with their Audit Opinion F/Y/E 2020 and 2021 (but it was included in the 2018 & 2019 audit opinions).

ACCELL AUDIT & CO Audit Opinion F/Y/E 2018 & 2019

CF AUDITS Audit Opinion F/Y/E 2020 & 2021


In the two most recent audits conducted by CF AUDITS, both audit opinions EXCLUDED THE GOING CONCERN paragraph. The audit was performed and signed off by Amjad N.I. Abu Khamis, CPA according to the filing. (From his resume on Google, he is 39 years old. Holds a BS and MS in Accounting. And received his CPA license from the State of New Hampshire on 12/1/16.)


WHAT DOES IT MEAN WHEN THE 'GOING CONCERN' PARAGRAPH IS TAKEN OUT BY THE AUDITOR?

The short answer is: To use a metaphor.. it's like winning the entire Mega Millions Lottery of $790M next week.

But seriously here's the longer answer: The Going Concern paragraph is viewed by layman as a 'Black Eye'. Nevertheless, it's inclusion is common place because we live in a litigious society and lawyers sue everyone involved if their client loses money in an investment.

For example, if anyone loses money in $NUVG because the Accounts Receivable balance is not collectible, then we can file a class action lawsuit against the auditor for negligence and malpractice. Why? Because we relied on the financial statements and disclosures to make an investment decision. So, auditors DO NOT just casually drop the 'Going Concern' paragraph unless they have verified the accuracy and collectability of the Accounts Receivable balance of $323M as of 12/31/21. But in Pro Music Rights audit for 2020 & 2021 that's exactly what the auditor did. POOF! Going Concern paragraph was taken out.

((APPLUSE, APPLAUSE))

(I can tell you this from personal experience. That when the auditor-in-charge of the Pro Music Rights audit (who worked their tail bone off to receive his BS and MS in Accounting, and pass the CPA Exam (we're talking 6+ years of school), they will do EVERYTHING according to Generally Accepted Accounting Principles or GAAP. They will not jeopardize losing their CPA license 6 years after receiving it. The auditor-in-charge would have followed GAAP guidance in conducting his audit of Pro Music Rights. That would include applying the "Principles of Conservatism" in reporting the Accounts Receivable ending balances in each. Otherwise, like I said, he could be sued for not reducing the Accounts Receivable number lower to an amount he deemed to be collectible.

The footnote disclosure (below) was written "after" all the extensive audit testing which the auditor conducted on Pro Music Rights largest asset, Accounts Receivable. And this is what they concluded...

Accounts receivable are stated at Net Realizable Value (NRV). No allowance for doubtful accounts was booked as of December 31, 2021, and 2020, respectfully.

I reiterate, $NUVG is self-reporting in their tweet $414M in Net Assets and no liabilities, which is in-line with Accounts Receivable balances of $323M five months before on 12/31/21. Based on 67M OS, The book value is $6.20 without a multiple. Apply a 2x multiple and you get $12 BUCKS. Now, I hope everyone is beginning to understand just how undervalued $NUVG is, and why in ZARDIW post, it showed a FACTOR OF 8,735, when the RM was announced three days ago.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169459248

JMO