Financial Analysis

NOTE 15. CONTINGENCIES AND COMMITMENTS Litigation The Company is subject to claims and contingencies in the normal course of business. To the extent the Company cannot determine whether a loss is probable based on the uncertain 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 condensed 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 condensed consolidated financial statements.

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NOTE 8. SECURED LINE OF CREDIT Long-term debt consists of the following: December 31, March 31, 2025 2025 Secured line of credit $ 455,828,410 $ 391,828,410 Debt issuance costs, net (3,569,076) (3,693,656) $ 452,259,334 $ 388,134,754 Credit Facilities RMM is party to a credit agreement (as amended or supplemented from time to time, the RMM Credit Agreement ) governing RMMs senior secured revolving credit facility (the Senior Credit Facility ). On June 3, 2025, RMM entered into an amendment (the Third Amendment ) to the RMM Credit Agreement, which amended the Senior Credit Facility to (i) increase the revolving credit commitment from $450,000,000 to $550,000,000, (ii) adjust the consolidated net senior debt to the value of the music library ratio from 30.0% to 37.5% for the 0.25% increase in the pricing grid, (iii) reset the incremental borrowing capacity under the facilitys accordion feature to $150,000,000 after the effectiveness of the Third Amendment, (iv) exclude non wholly-owned foreign subsidiaries from the requirement to guarantee obligations under the RMM Credit Agreement and (v) modify certain negative covenants under the RMM Credit Agreement as further set forth in the Third Amendment. In connection with the Third Amendment, the Company incurred banking, legal and consulting fees of $1,140,259 that were recorded as deferred financing fees, which will be amortized over the remaining term of the Senior Credit Facility. The maturity date of the loans advanced under the …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Revenue by Type Digital $ 17,422,844 $ 16,662,287 $ 47,808,353 $ 46,885,237 Performance 6,205,475 4,355,603 18,478,276 14,573,765 Synchronization 4,566,797 4,126,568 13,321,701 12,758,080 Mechanical 602,664 949,201 2,871,642 2,708,207 Other 1,323,765 799,444 3,449,977 2,564,007 Total Music Publishing 30,121,545 26,893,103 85,929,949 79,489,296 Digital 9,349,661 8,141,819 26,073,214 21,911,052 Physical 1,860,026 1,969,738 4,277,817 4,825,757 Neighboring rights 1,147,110 887,478 3,321,891 3,073,765 Synchronization 515,782 965,300 2,626,156 2,476,787 Total Recorded Music 12,872,579 11,964,335 36,299,078 32,287,361 Other revenue 2,573,755 3,446,278 5,938,196 5,511,295 Total revenue $ 45,567,879 $ 42,303,716 $ 128,167,223 $ 117,287,952 Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Revenue by Geographical Location United States Music Publishing $ 17,984,750 $ 16,758,233 $ 47,812,550 $ 46,670,370 United States Recorded Music 6,765,683 5,881,469 19,356,355 17,624,673 United States other revenue 2,573,755 3,446,278 5,938,196 5,511,295 Total United States 27,324,188 26,085,980 73,107,101 69,806,338 International Music Publishing 12,136,795 10,134,870 38,117,399 32,818,926 International Recorded Music 6,106,896 6,082,866 16,942,723 14,662,688 Total International 18,243,691 16,217,736 55,060,122 47,481,614 Total revenue $ 45,567,879 $ 42,303,716 $ 128,167,223 $ 117,287, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 12. SHARE-BASED COMPENSATION Share-based compensation expense totaled $1,091,683 ($849,910, net of taxes) and $1,006,468 ($782,505, net of taxes) during the three months ended December 31, 2025 and 2024, respectively. Share-based compensation expense totaled $3,339,120 ($2,599,612, net of taxes) and $3,333,853 ($2,591,992, net of taxes) during the nine months ended December 31, 2025 and 2024, respectively. Share-based compensation expense is classified as Administration expenses in the accompanying condensed consolidated statements of income. During the nine months ended December 31, 2025 and 2024, the Company granted restricted stock units ( RSUs ) to satisfy previous obligations to issue a variable number of equity awards based on a fixed monetary amount. Prior to the issuance of these RSUs, the Company classified these awards as liabilities. Upon issuance of the RSUs, the awards became equity-classified as they no longer met the criteria to be liability-classified and as a result liabilities of $1,075,407 and $802,500 were reclassified from accounts payable and accrued liabilities to additional paid-in capital during the nine months ended December 31, 2025 and 2024, respectively. …

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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 Companys 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 Senior Credit Facility. As described in Note 8, Secured Line of Credit, the Company entered into interest rate swap agreements to partially reduce its exposure to fluctuations in interest rates on its Credit Facilities. The fair value of the outstanding interest rate swaps consisted of a $642,406 asset and a $807,654 liability as of December 31, 2025 and a $1,828,303 asset and a $410,008 liability at March 31, 2025. 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 three and nine months ended December 31, 2025 of $270,380 and $1,583,543, respectively, was recorded as a loss on fair value of swaps. The change in the unrealized fair value of the swaps during the three months ended December 31, 2024 of $3,084,761 reflects marking to market our current interest rate swap hedges and was recorded as a gain on fair …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 9. INCOME TAXES Income tax expense for the three months ended December 31, 2025 and 2024 was $1,078,418 (32.9% effective tax rate) and $1,987,150 (27.2% effective tax rate), respectively. Income tax expense for the nine months ended December 31, 2025 and 2024 was $1,754,665 (31.8% effective tax rate) and $1,540,589 (23.5% effective tax rate), respectively. Income tax expense during the nine months ended December 31, 2024 reflects excess tax benefits related to share-based compensation and an incremental tax benefit of approximately $103,000 related to certain international intangible assets. The income tax expense during these periods also reflects the amount and mix of income from multiple tax jurisdictions. On July 4, 2025, the reconciliation bill, commonly referred to as the One Big Beautiful Bill Act ( OBBBA ), was signed into law in the U.S., introducing a broad range of tax reform provisions, including changes to interest deductibility, bonus depreciation, and various international provisions with multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The impact of the OBBBA tax legislation did not have a material impact on the condensed consolidated financial statements during the three and nine months ended December 31, 2025, and is not expected to have a material impact in future periods. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Standards Not Yet Adopted In November 2024, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ( ASU 2024-03 ), which will require disclosure of additional information about specific expense categories in the notes to financial statements at each interim and annual reporting period. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that adoption of ASU 2024-03 will have on its disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ( ASU 2023-09 ), which expands income tax disclosures, including requiring enhanced disclosures related to the rate reconciliation and income taxes paid information. The amendments in ASU 2023-09 should be applied on a prospective basis, with retrospective application permitted. ASU 2023-09 is effective for annual periods of public business entities for fiscal years beginning after December 15, 2024 and for annual periods of entities other than public entities beginning after December 15, 2025, with early adoption permitted. The Compa …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 4. REVENUE RECOGNITION For the Companys operating and reportable 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 Companys customers, and in an amount that reflects the consideration to which the Company is expected to be entitled in exchange for those services or goods. Certain of the Companys 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 $1,949,916 and $4,376,551 from performance obligations satisfied in previous periods for the nine months ended December 31, 2025 and 2024, respectively. Disaggregation of Revenue The Companys revenue consisted of the following categories during the three and nine months ended December 31, 2025 and 2024: Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Revenue by Type Digital $ 17,422,844 $ 16,662,287 $ 47,808,353 $ 46,885,237 Performance 6,205,475 4,355,603 18,478,276 14,573,765 Synchroniz …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 16. SEGMENT REPORTING The Companys business is organized in three operating segments, one of which does not meet the quantitative thresholds for determining reportable segments, and two reportable segments: Music Publishing and Recorded Music. The Company identified its Chief Executive Officer as its Chief Operating Decision Maker ( CODM ). The Companys CODM evaluates financial performance of its segments based on operating income before depreciation and amortization ( OIBDA ). The CODM regularly reviews trends in OIBDA and compares OIBDA results to budgets to evaluate the profitability of the segments. During the annual budget process, the CODM also considers OIBDA to assist in the allocation of resources to the segments. The accounting policies of the Companys business segments are consistent with the Companys policies for the condensed consolidated financial statements. The Company does not have sales between segments. The following tables present total revenue and OIBDA by segment, significant segment expenses, which are expenses that are included in OIBDA, significant to the segment considering qualitative and quantitative factors and regularly provided or easily computed from information regularly provided to the CODM, and a reconciliation of OIBDA to income before income taxes for the three and nine months ended December 31, 2025 and 2024: Three Months Ended December 31, 2025 Music Recorded Publishing Music Total Reportable segment revenue $ 30,121,545 $ 12,872,57 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing