REVENUE RECOGNITION

9 Months Ended

Dec. 31, 2025

NOTE 4. REVENUE RECOGNITION

For the Company’s 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 Company’s 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 Company’s 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 Company’s 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
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	$	117,287,952

Only the United States represented 10% or more of the Company’s total revenues in the three and nine months ended December 31, 2025 and 2024.

Deferred Revenue

The following table reflects the change in deferred revenue during the nine months ended December 31, 2025 and 2024:


		Nine Months Ended December 31,
		2025			2024
Balance at beginning of period		$	1,885,462		$	1,163,953
Cash received during period			8,496,975			5,390,560
Revenue recognized during period^(a)			(6,319,168)			(4,178,596)
Balance at end of period		$	4,063,269		$	2,375,917

(a)

Includes revenues of $1,643,875 during the nine months ended December 31, 2025 related to the balance of deferred revenue at April 1, 2025. Includes revenues of $1,060,929 during the nine months ended December 31, 2024 related to the balance of deferred revenue at April 1, 2024.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Reservoir Media, Inc. 10-Q