Music Licensing Inc (SONG)

[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.