10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to

Commission file number: 001-39795

RESERVOIR MEDIA, INC.

(Exact name of registrant as specified in its charter)

Delaware	83-3584204
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

200 Varick Street

Suite 801A

New York, New York 10014

(Address of principal executive offices, including zip code)

(212) 675-0541

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share (the “Common Stock”)	RSVR	The Nasdaq Stock Market LLC
Warrants to purchase one share of Common Stock, each at an exercise price of $11.50 per share	RSVRW	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

As of November 3, 2023, there were 64,810,835 shares of Common Stock of Reservoir Media, Inc. issued and outstanding.

RESERVOIR MEDIA, INC.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2023

TABLE OF CONTENTS

	Page
Part I. Financial Information	1
Item 1. Financial Statements	1
Condensed Consolidated Statements of Income for the Three and Six Months Ended September 30, 2023 and 2022 (unaudited)	1
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended September 30, 2023 and 2022 (unaudited)	2
Condensed Consolidated Balance Sheets as of September 30, 2023 and March 31, 2023 (unaudited)	3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended September 30, 2023 and 2022 (unaudited)	4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2023 and 2022 (unaudited)	5
Notes to Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3. Quantitative and Qualitative Disclosures About Market Risk	32
Item 4. Controls and Procedures	32
Part II. Other Information	34
Item 1. Legal Proceedings	34
Item 1A. Risk Factors	34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3. Defaults Upon Senior Securities	34
Item 4. Mine Safety Disclosures	34
Item 5. Other Information	34
Item 6. Exhibits	35
Part III. Signatures	36

i

PART I - FINANCIAL INFORMATION

Item 1. Interim Financial Statements.

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In U.S. dollars, except share data)

(Unaudited)

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenues	$	38,397,300	$	33,265,711	$	70,233,886	$	57,544,481
Costs and expenses:
Cost of revenue		14,442,666		13,940,035		27,914,263		23,915,166
Amortization and depreciation		6,214,540		5,384,341		12,270,108		10,745,844
Administration expenses		11,595,004		7,373,880		20,759,504		14,995,490
Total costs and expenses		32,252,210		26,698,256		60,943,875		49,656,500
Operating income		6,145,090		6,567,455		9,290,011		7,887,981
Interest expense		(5,759,506)		(3,504,818)		(10,493,039)		(6,480,878)
(Loss) gain on foreign exchange		(40,156)		173,343		(70,092)		280,686
Gain on fair value of swaps		628,091		2,932,443		2,473,478		4,502,780
Other income (expense), net		474		34		536		47
Income before income taxes		973,993		6,168,457		1,200,894		6,190,616
Income tax expense		291,638		1,682,369		353,986		1,687,707
Net income		682,355		4,486,088		846,908		4,502,909
Net (income) loss attributable to noncontrolling interests		(146,965)		50,845		(34,185)		110,063
Net income attributable to Reservoir Media, Inc.	$	535,390	$	4,536,933	$	812,723	$	4,612,972
Earnings per common share (Note 13):
Basic	$	0.01	$	0.07	$	0.01	$	0.07
Diluted	$	0.01	$	0.07	$	0.01	$	0.07
Weighted average common shares outstanding (Note 13):
Basic		64,783,974		64,349,375		64,684,082		64,286,797
Diluted		65,085,654		64,789,384		65,031,488		64,786,947

See accompanying notes to the condensed consolidated financial statements.

1

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In U.S. dollars)

(Unaudited)

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Net income	$	682,355	$	4,486,088	$	846,908	$	4,502,909
Other comprehensive loss:
Translation adjustments		(2,198,433)		(4,924,010)		(1,058,957)		(9,935,573)
Total comprehensive loss		(1,516,078)		(437,922)		(212,049)		(5,432,664)
Comprehensive (income) loss attributable to noncontrolling interests		(146,965)		50,845		(34,185)		110,063
Total comprehensive loss attributable to Reservoir Media, Inc.	$	(1,663,043)	$	(387,077)	$	(246,234)	$	(5,322,601)

See accompanying notes to the condensed consolidated financial statements.

2

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. dollars, except share data)

(Unaudited)

	September 30,		March 31,
	2023		2023
Assets
Current assets
Cash and cash equivalents	$	20,555,496	$	14,902,076
Accounts receivable		29,257,352		31,255,867
Current portion of royalty advances		12,882,031		15,188,656
Inventory and prepaid expenses		6,450,418		5,458,522
Total current assets		69,145,297		66,805,121
Intangible assets, net		635,597,071		617,404,741
Equity method and other investments		2,281,651		2,305,719
Royalty advances, net of current portion		56,442,076		51,737,844
Property, plant and equipment, net		584,184		568,339
Operating lease right of use assets, net		6,866,840		7,356,312
Fair value of swap assets		9,230,362		6,756,884
Other assets		1,322,330		1,147,969
Total assets	$	781,469,811	$	754,082,929
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	7,022,691	$	6,680,421
Royalties payable		40,017,207		33,235,235
Accrued payroll		821,049		1,689,310
Deferred revenue		2,549,427		2,151,889
Other current liabilities		9,946,198		10,583,794
Income taxes payable		332,017		204,987
Total current liabilities		60,688,589		54,545,636
Secured line of credit		332,134,211		311,491,581
Deferred income taxes		30,334,187		30,525,523
Operating lease liabilities, net of current portion		6,602,240		7,072,553
Other liabilities		590,519		785,113
Total liabilities		430,349,746		404,420,406
Contingencies and commitments (Note 15)
Shareholders’ Equity
Preferred stock, $0.0001 par value 75,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2023 and March 31, 2023		—		—
Common stock, $0.0001 par value; 750,000,000 shares authorized, 64,810,835 shares issued and outstanding at September 30, 2023; 64,441,244 shares issued and outstanding at March 31, 2023		6,481		6,444
Additional paid-in capital		340,130,343		338,460,789
Retained earnings		15,565,443		14,752,720
Accumulated other comprehensive loss		(5,914,286)		(4,855,329)
Total Reservoir Media, Inc. shareholders’ equity		349,787,981		348,364,624
Noncontrolling interest		1,332,084		1,297,899
Total shareholders’ equity		351,120,065		349,662,523
Total liabilities and shareholders’ equity	$	781,469,811	$	754,082,929

See accompanying notes to the condensed consolidated financial statements.

3

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In U.S. dollars, except share data)

(Unaudited)

	For the Three and Six Months Ended September 30, 2023
	Common Stock							Accumulated
				Additional				other
				paid-in		Retained		comprehensive		Noncontrolling		Shareholders’
	Shares	Amount		capital		earnings		loss		interests		equity
Balance, March 31, 2023	64,441,244	$	6,444	$	338,460,789	$	14,752,720	$	(4,855,329)	$	1,297,899	$	349,662,523
Share-based compensation	—		—		713,802		—		—		—		713,802
Vesting of restricted stock units, net of shares withheld for employee taxes	207,733		21		(689,176)		—		—		—		(689,155)
Reclassification of liability-classified awards to equity-classified awards	—		—		664,167		—		—		—		664,167
Net income (loss)	—		—		—		277,333		—		(112,780)		164,553
Other comprehensive income	—		—		—		—		1,139,476		—		1,139,476
Balance, June 30, 2023	64,648,977	$	6,465	$	339,149,582	$	15,030,053	$	(3,715,853)	$	1,185,119	$	351,655,366
Share-based compensation	—		—		612,235		—		—		—		612,235
Stock option exercises	56,466		5		288,537		—		—		—		288,542
Vesting of restricted stock units	105,392		11		(11)		—		—		—		—
Reclassification of liability-classified awards to equity-classified awards	—		—		80,000		—		—		—		80,000
Net income	—		—		—		535,390		—		146,965		682,355
Other comprehensive loss	—		—		—		—		(2,198,433)		—		(2,198,433)
Balance, September 30, 2023	64,810,835	$	6,481	$	340,130,343	$	15,565,443	$	(5,914,286)	$	1,332,084	$	351,120,065

	For the Three and Six Months Ended September 30, 2022
	Common Stock							Accumulated
				Additional				other
				paid-in		Retained		comprehensive		Noncontrolling		Shareholders’
	Shares	Amount		capital		earnings		loss		interests		equity
Balance, March 31, 2022	64,150,186	$	6,415	$	335,372,981	$	12,213,519	$	(1,198,058)	$	1,057,467	$	347,452,324
Share-based compensation	—		—		359,461		—		—		—		359,461
Vesting of restricted stock units, net of shares withheld for employee taxes	140,138		14		(475,872)		—		—		—		(475,858)
Reclassification of liability-classified awards to equity-classified awards	—		—		961,429		—		—		—		961,429
Net income (loss)	—		—		—		76,039		—		(59,218)		16,821
Other comprehensive loss	—		—		—		—		(5,011,563)		—		(5,011,563)
Balance, June 30, 2022	64,290,324	$	6,429	$	336,217,999	$	12,289,558	$	(6,209,621)	$	998,249	$	343,302,614
Share-based compensation	—		—		596,184		—		—		—		596,184
Vesting of restricted stock units	83,580		8		(8)		—		—		—		—
Reclassification of liability-classified awards to equity-classified awards	—		—		145,000		—		—		—		145,000
Net income (loss)	—		—		—		4,536,933		—		(50,845)		4,486,088
Other comprehensive loss	—		—		—		—		(4,924,010)		—		(4,924,010)
Balance, September 30, 2022	64,373,904	$	6,437	$	336,959,175	$	16,826,491	$	(11,133,631)	$	947,404	$	343,605,876

See accompanying notes to the condensed consolidated financial statements.

4

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. dollars)

(Unaudited)

	Six Months Ended September 30,
	2023		2022
Cash flows from operating activities:
Net income	$	846,908	$	4,502,909
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets		12,152,021		10,656,334
Depreciation of property, plant and equipment		118,087		89,510
Share-based compensation		1,727,286		1,617,490
Non-cash interest charges		668,544		1,158,685
Gain on fair value of swaps		(2,473,478)		(4,502,780)
Share of earnings of equity affiliates, net of tax		—		(34,133)
Dividend from equity affiliates		—		62,306
Changes in operating assets and liabilities:
Accounts receivable		1,998,515		(1,181,423)
Inventory and prepaid expenses		(991,896)		(1,910,295)
Royalty advances		(2,397,607)		(5,456,865)
Other assets and liabilities		187,764		(120,854)
Accounts payable and accrued expenses		6,893,749		5,050,386
Income taxes payable		127,030		1,694,732
Net cash provided by operating activities		18,856,923		11,626,002
Cash flows from investing activities:
Purchases of music catalogs		(32,382,393)		(15,793,674)
Purchase of property, plant and equipment		(133,932)		(161,338)
Net cash used for investing activities		(32,516,325)		(15,955,012)
Cash flows from financing activities:
Proceeds from secured line of credit		20,000,000		7,000,000
Proceeds from stock option exercises		288,542		—
Taxes paid related to net share settlement of restricted stock units		(689,155)		(475,858)
Deferred financing costs paid		(25,914)		(6,975)
Net cash provided by financing activities		19,573,473		6,517,167
Foreign exchange impact on cash		(260,651)		(1,181,185)
Increase in cash and cash equivalents		5,653,420		1,006,972
Cash and cash equivalents beginning of period		14,902,076		17,814,292
Cash and cash equivalents end of period	$	20,555,496	$	18,821,264

See accompanying notes to the condensed consolidated financial statements.

5

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

NOTE 1. DESCRIPTION OF BUSINESS

Reservoir Media, Inc. (formerly known as Roth CH Acquisition II Co. (“ROCC”)), a Delaware corporation (the “Company”), is an independent music company based in New York City, New York and with offices in Los Angeles, Nashville, Toronto, London and Abu Dhabi.

Following a business combination between ROCC and Reservoir Holdings, Inc., a Delaware corporation (“RHI”), on July 28, 2021 (the “Business Combination”), the Company’s legal name became “Reservoir Media, Inc.” The common stock, $0.0001 par value per share, of the Company (the “Common Stock”) and warrants are traded on The Nasdaq Stock Market LLC (“NASDAQ”) under the ticker symbols “RSVR” and “RSVRW,” respectively.

The Company’s activities are organized into two operating segments: Music Publishing and Recorded Music. Operations of the Music Publishing segment involve the acquisition of interests in music catalogs from which royalties are earned as well as signing songwriters to exclusive agreements which give the Company an interest in the future delivery of songs. The publishing catalog includes ownership or control rights to more than 150,000 musical compositions that span across historic pieces, motion picture scores and current award-winning hits. Operations of the Recorded Music segment involve the acquisition of sound recording catalogs as well as the discovery and development of recording artists and the marketing, distribution, sale and licensing of the music catalog. The Recorded Music operations are primarily conducted through the Chrysalis Records platform and Tommy Boy Music and include the ownership of over 36,000 sound recordings.

NOTE 2. BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. All intercompany transactions and balances have been eliminated in these condensed consolidated financial statements. Certain information and note disclosures typically included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s audited financial statements as of and for the fiscal years ended March 31, 2023 and 2022.

The condensed consolidated balance sheet of the Company as of March 31, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by US GAAP on an annual reporting basis.

In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods. The results for the three and six months ended September 30, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending March 31, 2024 or any other period.

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. Significant estimates are used for, but not limited to, determining useful lives of intangible assets, intangible asset recoverability and impairment and accrued revenue. Actual results could differ from these estimates.

6

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Standards Recently Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses. Subsequent to ASU 2016-13, the FASB has issued several related ASUs amending the original ASU 2016-13. The updates are intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. For the Company, ASU 2016-13 was effective beginning April 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.

NOTE 4. REVENUE RECOGNITION

For the Company’s operating 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 the Company is contractually due 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 $3,571,968 and $3,377,420 from performance obligations satisfied in previous periods for the six months ended September 30, 2023 and 2022, respectively. Revenue recognized from performance obligations satisfied in previous periods for the six months ended September 30, 2022 was impacted by an update to estimated Music Publishing royalties based on the Company’s estimate of effects arising from the July 2022 ruling by the U.S. Copyright Royalty Board (the “CRB”) to affirm increases to the statutory royalty rate structure for mechanical royalties in the U.S. for the period 2018 to 2022. For much of the period between 2018 and 2022, most digital service providers accounted and submitted payment to the Company using the applicable 2017 rate while the remand process took place.

7

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

Disaggregation of Revenue

The Company’s revenue consisted of the following categories during the three and six months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenue by Type
Digital	$	12,755,372	$	13,246,981	$	24,655,889	$	21,710,851
Performance		6,493,505		4,411,443		11,008,409		7,947,867
Synchronization		4,467,826		4,413,154		7,500,525		7,712,500
Mechanical		1,251,662		1,000,513		1,811,309		1,514,981
Other		939,697		991,290		1,723,245		1,623,889
Total Music Publishing		25,908,062		24,063,381		46,699,377		40,510,088
Digital		7,264,540		6,312,160		12,887,189		10,875,702
Physical		1,892,387		851,355		5,466,938		2,148,533
Neighboring rights		802,398		740,932		1,661,545		1,426,281
Synchronization		868,154		989,232		1,196,444		2,013,874
Total Recorded Music		10,827,479		8,893,679		21,212,116		16,464,390
Other revenue		1,661,759		308,651		2,322,393		570,003
Total revenue	$	38,397,300	$	33,265,711	$	70,233,886	$	57,544,481

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenue by Geographical Location
United States Music Publishing	$	14,371,352	$	14,916,155	$	27,372,346	$	24,759,449
United States Recorded Music		5,882,700		4,967,177		11,407,463		8,770,013
United States other revenue		1,661,759		308,651		2,322,393		570,003
Total United States		21,915,811		20,191,983		41,102,202		34,099,465
International Music Publishing		11,536,710		9,147,226		19,327,031		15,750,639
International Recorded Music		4,944,779		3,926,502		9,804,653		7,694,377
Total International		16,481,489		13,073,728		29,131,684		23,445,016
Total revenue	$	38,397,300	$	33,265,711	$	70,233,886	$	57,544,481

Only the United States represented 10% or more of the Company’s total revenues in the three and six months ended September 30, 2023 and 2022.

Deferred Revenue

The following table reflects the change in deferred revenue during the six months ended September 30, 2023 and 2022:

	September 30,
	2023		2022
Balance at beginning of period	$	2,151,889	$	1,103,664
Cash received during period		2,719,181		4,451,194
Revenue recognized during period		(2,321,643)		(1,930,247)
Balance at end of period	$	2,549,427	$	3,624,611

8

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

NOTE 5. ACQUISITIONS

In the ordinary course of business, the Company regularly acquires publishing and recorded music catalogs, which are typically accounted for as asset acquisitions. During the six months ended September 30, 2023 and 2022, the Company completed such acquisitions totaling $31,303,370 and $6,946,630, respectively, inclusive of deferred acquisition payments, none of which were individually significant.

NOTE 6. INTANGIBLE ASSETS

Intangible assets subject to amortization consist of the following as of September 30, 2023 and March 31, 2023:

	September 30, 2023		March 31, 2023
Intangible assets subject to amortization:
Publishing and recorded music catalogs	$	752,086,373	$	721,904,892
Artist management contracts		881,377		893,283
Gross intangible assets		752,967,750		722,798,175
Accumulated amortization		(117,370,679)		(105,393,434)
Intangible assets, net	$	635,597,071	$	617,404,741

Straight-line amortization expense totaled $6,154,509 and $5,341,069 in the three months ended September 30, 2023 and 2022, respectively. Straight-line amortization expense totaled $12,152,021 and $10,656,334 in the six months ended September 30, 2023 and 2022, respectively.

NOTE 7. ROYALTY ADVANCES

The Company made royalty advances totaling $8,969,170 and $12,313,011 during the six months ended September 30, 2023 and 2022, respectively, recoupable from the writer’s or artist’s share of future royalties otherwise payable, in varying amounts. Advances expected to be recouped within the next twelve months are classified as current assets, with the remainder classified as noncurrent assets.

	Six Months Ended
	September 30,
	2023		2022
Balance at beginning of period	$	66,926,500	$	57,012,754
Additions		8,969,170		12,313,011
Recoupments		(6,571,563)		(6,856,146)
Balance at end of period	$	69,324,107	$	62,469,619

NOTE 8. SECURED LINE OF CREDIT

Long-term debt consists of the following:

	September 30, 2023		March 31, 2023
Secured line of credit	$	337,828,410	$	317,828,409
Debt issuance costs, net		(5,694,199)		(6,336,828)
	$	332,134,211	$	311,491,581

Credit Facilities

On December 16, 2022, Reservoir Media Management, Inc. (“RMM”), a subsidiary of RHI, entered into an amendment (the “Second Amendment”) to the credit agreement (the “RMM Credit Agreement”) governing RMM’s secured revolving credit facility

9

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

(the “Senior Credit Facility”). The Second Amendment amended the RMM Credit Agreement to (i) increase RMM’s senior secured revolving credit facility from $350,000,000 to $450,000,000, (ii) increase the incremental borrowing available under the facility’s accordion feature (discussed below) from $50,000,000 to $150,000,000, (iii) extend the maturity date of the loans advanced under the RMM Credit Agreement from October 16, 2024 to December 16, 2027, (iv) modify the interest rate to be equal to either the sum of a base rate plus a margin of 1.00% or the sum of a SOFR rate plus a margin of 2.00%, in each case subject to a 0.25% increase based on a consolidated net senior debt to library value ratio, (v) remove the existing total leverage ratio financial covenant of no greater than 7.50:1.00 (net of up to $20,000,000 of certain cash balances) as of the end of each fiscal quarter, (vi) reduce the minimum required fixed charge coverage ratio financial covenant to 1.10:1.00 and (vii) modify the consolidated senior debt to library value ratio financial covenant to 0.450, subject to certain adjustments. In connection with the Second Amendment, RMM recorded a loss on early extinguishment of debt of approximately $914,000 that reflects the write-off of a portion of unamortized previous debt issuance costs and capitalized approximately $3,500,000 in new debt issuance costs.

RMM is required to pay an unused fee in respect of unused commitments under the Senior Credit Facility, if any, at a rate of 0.25% per annum. Substantially all tangible and intangible assets of the Company, RHI, RMM and the other subsidiary guarantors are pledged as collateral to secure the obligations of RMM under the RMM Credit Agreement.

The RMM Credit Agreement contains customary covenants limiting the ability of the Company, RHI, RMM and certain of its subsidiaries to, among other things, incur debt or liens, merge or consolidate with others, make investments, make cash dividends, redeem or repurchase capital stock, dispose of assets, enter into transactions with affiliates or enter into certain restrictive agreements. In addition, the Company, on a consolidated basis with its subsidiaries, must comply with financial covenants requiring the Company to maintain (i) a fixed charge coverage ratio of not less than 1.10:1.00 for each four fiscal quarter period, and (ii) a consolidated senior debt to library value ratio of 0.45:1.00, subject to certain adjustments. If RMM does not comply with the covenants in the RMM Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Senior Credit Facility.

The Senior Credit Facility also includes an “accordion feature” that permits RMM to seek additional commitments in an amount not to exceed $150,000,000. As of September 30, 2023, the Senior Credit Facility had a borrowing capacity of $450,000,000, with remaining borrowing availability of $112,171,590.

Interest Rate Swaps

At September 30, 2023, RMM had the following interest rate swaps outstanding, under which it pays a fixed rate and receives a floating interest payment from the counterparty based on SOFR with reference to notional amounts adjusted to match the amended scheduled principal repayments pursuant to the Senior Credit Facility:

	Notional
	Amount at		Pay Fixed
Effective Date	September 30, 2023		Rate		Maturity
March 10, 2022	$	8,000,000	1.5330	%	September 2024
March 10, 2022	$	87,680,787	1.4220	%	September 2024
December 31, 2021	$	54,319,213	0.9720	%	September 2024
September 30, 2024	$	100,000,000	2.9460	%	December 2027

NOTE 9. INCOME TAXES

Income tax expense for the three months ended September 30, 2023 and 2022 was $291,638 (29.9% effective tax rate) and $1,682,369 (27.3% effective tax rate), respectively. Income tax expense for the six months ended September 30, 2023 and 2022 was $353,986 (29.5% effective tax rate) and $1,687,707 (27.3% effective tax rate), respectively. The effective tax rates during these periods reflect the amount and mix of income from multiple tax jurisdictions.

10

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

NOTE 10. SUPPLEMENTARY CASH FLOW INFORMATION

Interest paid and income taxes paid for the six months ended September 30, 2023 and 2022 were comprised of the following:

	2023		2022
Interest paid	$	9,136,713	$	5,319,954
Income taxes paid	$	187,940	$	30,000

Non-cash investing and financing activities for the six months ended September 30, 2023 and 2022 were comprised of the following:

	2023		2022
Acquired intangible assets included in other liabilities	$	1,823,691	$	1,051,692
Reclassification of liability-classified awards to equity-classified awards	$	744,167	$	1,106,429

NOTE 11. WARRANTS

As of September 30, 2023, the Company’s outstanding warrants included 5,750,000 publicly-traded warrants (the “Public Warrants”), which were issued during ROCC’s initial public offering on December 15, 2020, and 137,500 warrants sold in a private placement to ROCC’s sponsor (the “Private Warrants” and together with the Public Warrants, the “Warrants”), which were assumed by the Company in connection with the Business Combination and exchanged into warrants for shares of Common Stock. Each whole Warrant entitles the registered holder to purchase one whole share of Common Stock at a price of $11.50 per share, provided that the Company has an effective registration statement under the Securities Act covering the shares of Common Stock issuable upon exercise of the Warrants and a current prospectus relating to them is available and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder.

The Warrants will expire on July 28, 2026, which is five years after the completion of the Business Combination, or earlier upon redemption or liquidation. The Company may redeem the outstanding Public Warrants in whole, but not in part, at a price of $0.01 per warrant upon a minimum of 30 days’ prior written notice of redemption, if and only if the last sale price of Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the registered holders.

NOTE 12. SHARE-BASED COMPENSATION

Share-based compensation expense totaled $812,860 ($626,014, net of taxes) and $851,987 ($656,692, net of taxes) during the three months ended September 30, 2023 and 2022, respectively. Share-based compensation expense totaled $1,727,286 ($1,330,249, net of taxes) and $1,617,490 ($1,246,724, net of taxes) during the six months ended September 30, 2023 and 2022, respectively. Share-based compensation expense is classified as “Administration expenses” in the accompanying condensed consolidated statements of income.

During the three and six months ended September 30, 2023 and 2022, 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 RSU’s the awards became equity-classified as they no longer met the criteria to be liability-classified and as a result liabilities of $744,167 and $1,106,429 were reclassified from accounts payable and accrued liabilities to additional paid-in capital during the six months ended September 30, 2023 and 2022, respectively.

11

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

NOTE 13. EARNINGS PER SHARE

The following table summarizes the basic and diluted earnings per common share calculation for the three and six months ended September 30, 2023 and 2022:

		Three Months Ended			Six Months Ended
		September 30,			September 30,
		2023	2022		2023		2022
Basic earnings per common share
Net income attributable to Reservoir Media, Inc.	$	535,390	$	4,536,933	$	812,723	$	4,612,972
Weighted average common shares outstanding - basic		64,783,974		64,349,375		64,684,082		64,286,797
Earnings per common share - basic	$	0.01	$	0.07	$	0.01	$	0.07
Diluted earnings per common share
Net income attributable to Reservoir Media, Inc.	$	535,390	$	4,536,933	$	812,723	$	4,612,972
Weighted average common shares outstanding - basic		64,783,974		64,349,375		64,684,082		64,286,797
Weighted average effect of potentially dilutive securities:
Effect of dilutive stock options and RSUs		301,680		440,009		347,406		500,150
Weighted average common shares outstanding - diluted		65,085,654		64,789,384		65,031,488		64,786,947
Earnings per common share - diluted	$	0.01	$	0.07	$	0.01	$	0.07

Because of their anti-dilutive effect, 5,960,637 shares of Common Stock equivalents, comprised of 73,137 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the three and six months ended September 30, 2023. Because of their anti-dilutive effect, 5,957,444 shares of Common Stock equivalents, comprised of 69,944 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the three months ended September 30, 2022. Because of their anti-dilutive effect, 5,952,683 shares of Common Stock equivalents, comprised of 65,183 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the six months ended September 30, 2022.

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 Company’s 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 was a $9,230,362 asset as of September 30, 2023 and a $6,756,884 asset as of March 31, 2023. 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 six months ended September 30, 2023 of $628,091 and $2,473,478, respectively, was recorded as a Gain on fair value of swaps. The change in the unrealized fair value of the swaps during

12

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

the three and six months ended September 30, 2022 of $2,932,443 and $4,502,780, respectively, was recorded as a Gain on fair value of swaps.

(c) Foreign Exchange Risk

The Company is exposed to foreign exchange risk in fluctuations of currency rates on its revenue from royalties, writers’ fees and its subsidiaries’ operations.

(d) Financial Instruments

Financial instruments not described elsewhere include cash, accounts receivable, accounts payable, accrued liabilities and the Company’s secured line of credit. The carrying values of these instruments as of September 30, 2023 do not differ materially from their respective fair values due to the immediate or short-term duration of these items or their bearing market-related rates of interest.

NOTE 15. CONTINGENCIES AND COMMITMENTS

(a) Litigation

The Company is subject to claims and contingencies in the normal course of business. To the extent the Company cannot predict the 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.

The Company has been involved in a royalty dispute, which commenced in 2017 (the “Royalty Dispute”). Under the terms of the Company’s royalty contract, the Company is indemnified for legal expenses and attorneys’ fees incurred by the Company in connection with the Royalty Dispute, including, without limitation, the right to withhold royalties or offset all such legal expenses and attorneys’ fees against royalties otherwise owed under the contract. The Company recorded legal expenses and attorneys’ fees incurred as recoupable advances against the royalty account under such contract beginning in 2017. In September 2023, the Company engaged in mediation sessions in an effort to reach a settlement of the Royalty Dispute. Following such mediation and associated settlement negotiations, the Company agreed to pay previously accrued but unpaid royalties plus interest and forego its right to recoup its historical legal expenses and attorneys’ fees in order to resolve the Royalty Dispute. Consequently, during the three and six months ended September 30, 2023, the Company recorded approximately $2,700,000 of Administration expenses to write-off recoupable legal expenses and attorneys’ fees and recorded $620,000 of interest expense based on amounts it paid in October 2023, pursuant to a final settlement agreement reached on October 3, 2023 to resolve the Royalty Dispute.

NOTE 16. SEGMENT REPORTING

The Company’s business is organized in two reportable segments: Music Publishing and Recorded Music. The Company identified its Chief Executive Officer as its Chief Operating Decision Maker (“CODM”). The Company’s CODM evaluates financial performance of its segments based on several factors, of which the primary financial measure is operating income before depreciation and amortization (“OIBDA”). The accounting policies of the Company’s business segments are consistent with the Company’s policies for the condensed consolidated financial statements. The Company does not have sales between segments.

13

RESERVOIR MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(Unaudited)

The following tables present total revenue and reconciliation of OIBDA to operating income by segment for the three and six months ended September 30, 2023 and 2022:

	Three Months Ended September 30, 2023
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	25,908,062	$	10,827,479	$	1,661,759	$	38,397,300
Reconciliation of OIBDA to operating income:
Operating income		1,410,522		4,129,816		604,752		6,145,090
Amortization and depreciation		4,791,759		1,398,966		23,815		6,214,540
OIBDA	$	6,202,281	$	5,528,782	$	628,567	$	12,359,630

	Three Months Ended September 30, 2022
	Music		Recorded
	Publishing		Music			Other	Consolidated
Total revenue	$	24,063,381	$	8,893,679	$	308,651	$	33,265,711
Reconciliation of OIBDA to operating income:
Operating income		3,074,439		3,476,367		16,649		6,567,455
Amortization and depreciation		4,010,123		1,352,977		21,241		5,384,341
OIBDA	$	7,084,562	$	4,829,344	$	37,890	$	11,951,796

	Six Months Ended September 30, 2023
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	46,699,377	$	21,212,116	$	2,322,393	$	70,233,886
Reconciliation of OIBDA to operating income:
Operating income		2,806,994		5,893,612		589,405		9,290,011
Amortization and depreciation		9,094,603		3,128,118		47,387		12,270,108
OIBDA	$	11,901,597	$	9,021,730	$	636,792	$	21,560,119

	Six Months Ended September 30, 2022
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	40,510,088	$	16,464,390	$	570,003	$	57,544,481
Reconciliation of OIBDA to operating income:
Operating income		2,813,131		5,057,677		17,173		7,887,981
Amortization and depreciation		7,964,493		2,737,458		43,894		10,745,844
OIBDA	$	10,777,624	$	7,795,135	$	61,067	$	18,633,825

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of Reservoir Media, Inc.’s financial condition and results of operations should be read in conjunction with Reservoir Media, Inc.’s condensed consolidated financial statements, including the accompanying notes thereto contained elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). Certain statements contained in the discussion and analysis set forth below include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Unless the context otherwise requires, the terms “we,” “us,” “our,” the “Company” and “Reservoir” refer collectively to Reservoir Media, Inc. and its consolidated subsidiaries.

Special Note Regarding Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are not historical facts, and are intended to be covered by the safe harbor created thereby. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “predict,” “project,” “target,” “goal,” “intend,” “continue,” “could,” “may,” “might,” “shall,” “should,” “will,” “would,” “plan,” “possible,” “potential,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. In addition, any statements that refer to expectations, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current expectations, projections and beliefs based on information currently available. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about the Company that may cause its actual business, financial condition, results of operations, performance and/or achievements to be materially different from any future business, financial condition, results of operations, performance and/or achievements expressed or implied by these forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 31, 2023 and the Company’s other filings with the SEC. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Introduction

We are a holding company that conducts substantially all of our business operations through Reservoir Media Management, Inc. (“RMM”) and RMM’s subsidiaries. Our activities are generally organized into two operating segments: Music Publishing and Recorded Music. Operations of the Music Publishing segment involve the acquisition of interests in music catalogs from which royalties are earned as well as signing songwriters to exclusive agreements, which gives us an interest in the future delivery of songs. Operations of the Recorded Music segment involve the acquisition of sound recording catalogs as well as the discovery and development of recording artists and the marketing, distribution, sale and licensing of the music catalogs.

Business Overview

We are an independent music company operating in music publishing and recorded music. We represent over 150,000 copyrights in our publishing business and over 36,000 master recordings in our recorded music business. Both of our business areas are populated with hit songs dating back to the early 1900s representing an array of artists across genre and geography. Consistent with how we classify and operate our business, our company is organized in two operating and reportable segments: Music Publishing and Recorded Music. A brief description of each segment’s operations is presented below.

Music Publishing Segment

Music Publishing is an intellectual property business focused on generating revenue from uses of the musical composition itself. In return for promoting, placing, marketing and administering the creative output of a songwriter or engaging in those activities for other rightsholders, our Music Publishing business garners a share of the revenues generated from use of the musical compositions.

15

The operations of our Music Publishing business are conducted principally through RMM, our global music publishing company headquartered in New York City, with operations in multiple countries through various subsidiaries, affiliates and non-affiliated licensees and sub-publishers. We own or control rights to more than 150,000 musical compositions, including numerous pop hits, American standards, folk songs and motion picture and theatrical compositions. Assembled over many years, our current award-winning active songwriters exceed 100, while the catalog includes over 5,000 clients representing a diverse range of genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, techno, alternative and gospel.

Music Publishing revenues are derived from five main sources:

● Digital––the rightsholder receives revenues with respect to musical compositions embodied in recordings distributed in streaming services, download services and other digital music services;

● Performance––the rightsholder receives revenues if the musical composition is performed publicly through broadcast of music on television, radio and cable and in retail locations (e.g., bars and restaurants), live performance at a concert or other venue (e.g., arena concerts and nightclubs), and performance of music in staged theatrical productions;

● Synchronization––the rightsholder receives revenues for the right to use the musical composition in combination with visual images such as in films or television programs, television commercials and video games;

● Mechanical––the rightsholder receives revenues with respect to musical compositions embodied in recordings sold in any machine-readable format or configuration such as vinyl, CDs and DVDs; and

● Other––the rightsholder receives revenues for use in sheet music and other uses.

The principal costs associated with our Music Publishing business are as follows:

● Writer Royalties and Other Publishing Costs––the artist and repertoire (“A&R”) costs associated with (i) paying royalties to songwriters, co-publishers and other copyright holders in connection with income generated from the uses of their works and (ii) signing and developing songwriters; and

● Administration Expenses––the costs associated with general overhead, and other administrative expenses, as well as selling and marketing.

Recorded Music Segment

Our Recorded Music business consists of three primary areas of sound recording ownership. First is the active marketing, promotion, distribution, sale and licensing of newly created frontline sound recordings from Current Artists that we own and control. This is a new area of focus for us and does not yet produce significant revenue. The second is the active marketing, promotion, distribution, sale and license of previously recorded and subsequently acquired Catalog recordings. The third is acquisition of full or partial interests in existing record labels, sound recording catalogs or income rights to a royalty stream associated with an established recording artist or producer contract in connection with existing sound recordings. Acquisition of these income participation interests are typically in connection with recordings that are owned, controlled, and marketed by other record labels.

Our Current Artist and Catalog recorded music businesses are both primarily handled by our Chrysalis Records label based in London and our Tommy Boy record label based in New York City. In the United States, we also manage some select Catalog recorded music under our Philly Groove Records and Reservoir Records labels. We also own income participation interests in recordings by The Isley Brothers, The Commodores, Wisin and Yandel, Alabama and Travis Tritt, and an interest in the Loud Records catalog containing recordings by the Wu-Tang Clan. Our core Catalog includes recordings under the Chrysalis Records label by artists such as Sinéad O’Connor, The Specials, Generation X, The Waterboys and De La Soul, as well as recordings under the Tommy Boy record label by artists such as House of Pain, Naughty By Nature, and Queen Latifah.

Our Current Artist and Catalog recorded music distribution is handled by a network of distribution partners. Chrysalis Records current frontline releases are distributed through Secretly Distribution, with prior frontline releases distributed through PIAS. Chrysalis Records and Tommy Boy catalogs are distributed via our agreements with MERLIN, AMPED, Proper and other partners.

16

Through our distribution network, our music is being sold in physical retail outlets as well as in physical form to online physical retailers, such as amazon.com, and distributed in digital form to an expanding universe of digital partners, including streaming services such as Amazon, Apple, Deezer, SoundCloud, Spotify, Tencent Music Entertainment Group, Tidal and YouTube, radio services such as iHeart Radio and SiriusXM, and download services. We also license music digitally to fitness platforms such as Apple Fitness+, Equinox, Hydrow and Peloton and social media outlets, such as Facebook, Instagram, TikTok and Snap.

Recorded Music revenues are derived from four main sources:

● Digital––the rightsholder receives revenues with respect to streaming and download services;

● Physical––the rightsholder receives revenues with respect to sales of physical products such as vinyl, CDs and DVDs;

● Neighboring Rights––the rightsholder receives royalties if sound recordings are performed publicly through broadcast of music on television, radio, and cable, and in public spaces such as shops, workplaces, restaurants, bars and clubs; and

● Synchronization––the rightsholder receives royalties or fees for the right to use sound recordings in combination with visual images such as in films or television programs, television commercials and video games.

The principal costs associated with our Recorded Music business are as follows:

● Artist Royalties and Other Recorded Costs––the A&R costs associated with (i) paying royalties to recording artists, producers, songwriters, other copyright holders and trade unions, (ii) signing and developing recording artists and (iii) creating master recordings in the studio; and product costs to manufacture, package and distribute products to wholesale and retail distribution outlets; and

● Administration Expenses––the costs associated with general overhead and other administrative expenses as well as costs associated of selling and marketing.

Use of Non-GAAP Financial Measures

We prepare our financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP” or “GAAP”). However, this Management’s Discussion and Analysis of Financial Condition and Results of Operations also contains certain non-GAAP financial measures to assist readers in understanding our performance. Non-GAAP financial measures either exclude or include amounts that are not reflected in the most directly comparable measure calculated and presented in accordance with GAAP. Where non-GAAP financial measures are used, we have provided the most directly comparable measures calculated and presented in accordance with U.S. GAAP, a reconciliation to GAAP measures and a discussion of the reasons why management believes this information is useful to it and may be useful to investors.

17

Results of Operations

Income Statement

Our income statement was composed of the following amounts (in thousands):

	For the Three Months								For the Six Months
	Ended September 30,				2023 vs. 2022				Ended September 30,				2023 vs. 2022
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Revenues	$	38,397	$	33,266	$	5,132	15	%	$	70,234	$	57,544	$	12,689	22	%
Costs and expenses:
Cost of revenue		14,443		13,940		503	4	%		27,914		23,915		3,999	17	%
Amortization and depreciation		6,215		5,384		830	15	%		12,270		10,746		1,524	14	%
Administration expenses		11,595		7,374		4,221	57	%		20,760		14,995		5,764	38	%
Total costs and expenses		32,252		26,698		5,554	21	%		60,944		49,657		11,287	23	%
Operating income		6,145		6,567		(422)	(6)	%		9,290		7,888		1,402	18	%
Interest expense		(5,760)		(3,505)		(2,255)	64	%		(10,493)		(6,481)		(4,012)	62	%
(Loss) gain on foreign exchange		(40)		173		(213)	(123)	%		(70)		281		(351)	(125)	%
Gain on fair value of swaps		628		2,932		(2,304)	(79)	%		2,473		4,503		(2,029)	(45)	%
Other income (expense), net		—		—		—	0	%		1		—		1	NM
Income before income taxes		974		6,168		(5,194)	(84)	%		1,201		6,191		(4,990)	(81)	%
Income tax expense		292		1,682		(1,391)	(83)	%		354		1,688		(1,334)	(79)	%
Net income		682		4,486		(3,804)	(85)	%		847		4,503		(3,656)	(81)	%
Net (income) loss attributable to noncontrolling interests		(147)		51		(198)	NM			(34)		110		(144)	(131)	%
Net income attributable to Reservoir Media, Inc.	$	535	$	4,537	$	(4,002)	(88)	%	$	813	$	4,613	$	(3,800)	(82)	%

NM – Not meaningful

18

Revenues

Our revenues were composed of the following amounts (in thousands):

	For the Three Months								For the Six Months
	Ended September 30,				2023 vs. 2022				Ended September 30,				2023 vs. 2022
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Revenue by Type
Digital	$	12,755	$	13,247	$	(492)	(4)	%	$	24,656	$	21,711	$	2,945	14	%
Performance		6,494		4,411		2,082	47	%		11,008		7,948		3,061	39	%
Synchronization		4,468		4,413		55	1	%		7,501		7,713		(212)	(3)	%
Mechanical		1,252		1,001		251	25	%		1,811		1,515		296	20	%
Other		940		991		(52)	(5)	%		1,723		1,624		99	6	%
Total Music Publishing		25,908		24,063		1,845	8	%		46,699		40,510		6,189	15	%
Digital		7,265		6,312		952	15	%		12,887		10,876		2,011	18	%
Physical		1,892		851		1,041	122	%		5,467		2,149		3,318	154	%
Neighboring rights		802		741		61	8	%		1,662		1,426		235	16	%
Synchronization		868		989		(121)	(12)	%		1,196		2,014		(817)	(41)	%
Total Recorded Music		10,827		8,894		1,934	22	%		21,212		16,464		4,748	29	%
Other revenue		1,662		309		1,353	NM			2,322		570		1,752	NM
Total Revenue	$	38,397	$	33,266	$	5,132	15	%	$	70,234	$	57,544	$	12,689	22	%

	For the Three Months								For the Six Months
	Ended September 30,				2023 vs. 2022				Ended September 30,				2023 vs. 2022
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Revenue by Geographical Location
U.S. Music Publishing	$	14,371	$	14,916	$	(545)	(4)	%	$	27,372	$	24,759	$	2,613	11	%
U.S. Recorded Music		5,883		4,967		916	18	%		11,407		8,770		2,637	30	%
U.S. Other Revenue		1,662		309		1,353	NM			2,322		570		1,752	NM
Total U.S.		21,916		20,192		1,724	9	%		41,102		34,099		7,003	21	%
International Music Publishing		11,537		9,147		2,389	26	%		19,327		15,751		3,576	23	%
International Recorded Music		4,945		3,927		1,018	26	%		9,805		7,694		2,110	27	%
Total International		16,481		13,074		3,408	26	%		29,132		23,445		5,687	24	%
Total Revenue	$	38,397	$	33,266	$	5,132	15	%	$	70,234	$	57,544	$	12,689	22	%

NM – Not meaningful

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Total revenues increased by $5,132 thousand, or 15%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, driven by a 22% increase in Recorded Music revenue and an 8% increase in Music Publishing revenue. Music Publishing revenues represented 67% and 72% of total revenues for the three months ended September 30, 2023 and the three months ended September 30, 2022, respectively. Recorded Music revenues represented 28% and 27% of total revenues for the three months ended September 30, 2023 and the three months ended September 30, 2022, respectively. U.S. and international revenues represented 57% and 43%, respectively of total revenues for the three months ended September 30, 2023. U.S. and international revenues represented 61% and 39%, respectively of total revenues for the three months ended September 30, 2022. The shift in mix between Music Publishing and Recorded Music was driven primarily by the significant physical sales in the Recorded Music segment for the quarter. The shift in geographic mix is primarily attributable to the nonrecurrence of $2.1 million recognized during the three months ended September 30, 2022 for estimated retroactive U.S. royalties related to the 2022 CRB ruling.

19

Total digital revenues increased by $461 thousand, or 2%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily due to the higher royalty rates in effect for 2023 as well as price increases at multiple music streaming services, partially offset by the nonrecurrence of $2.1 million recognized during the three months ended September 30, 2022 for estimated retroactive U.S. royalties related to the 2022 CRB ruling. Total digital revenues represented 52% and 59% of consolidated revenues for the three months ended September 30, 2023 and the three months ended September 30, 2022, respectively.

Music Publishing revenues increased by $1,845 thousand, or 8%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. This increase in Music Publishing revenue was mainly driven by acquisitions of catalogs and revenue from the existing catalog, which led to increases in performance revenue and mechanical revenue, partially offset by a decrease in digital revenue. The decrease in digital revenue was due primarily to the nonrecurrence of $2.1 million recognized during the three months ended September 30, 2022 for estimated retroactive U.S. royalties related to the 2022 CRB ruling, partially offset by higher royalty rates in effect for 2023 as well as price increases at multiple music streaming services.

On a geographic basis, U.S. Music Publishing revenues represented 55% of total Music Publishing revenues for the three months ended September 30, 2023 compared to 62% for the three months ended September 30, 2022. International Music Publishing revenues represented 45% of total Music Publishing revenues for the three months ended September 30, 2023 compared to 38% for the three months ended September 30, 2022. The decrease in the U.S. percentage for the three months ended September 30, 2023 was driven primarily by the nonrecurrence of $2.1 million recognized during the three months ended September 30, 2022 for estimated retroactive U.S. royalties related to the 2022 CRB ruling.

Recorded Music revenues increased by $1,934 thousand, or 22%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. The increase in Recorded Music revenue was driven by an increase in physical revenue and the continued growth at music streaming services. The $1,041 thousand increase in physical revenue was primarily due to De La Soul releases for Tommy Boy and the timing of Chrysalis’ release schedule. The $121 thousand decrease in synchronization revenue was primarily due to timing of synchronization licenses, as well as the writers’ and actors’ strikes in Hollywood.

On a geographic basis, U.S. Recorded Music revenues represented 54% of total Recorded Music revenues for the three months ended September 30, 2023 compared to 56% for the three months ended September 30, 2022. International Recorded Music revenues represented 46% of total Recorded Music revenues for the three months ended September 30, 2023 compared to 44% for the three months ended September 30, 2022, primarily as a result of De La Soul releases that performed particularly well in the U.S.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Total revenues increased by $12,689 thousand, or 22%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, driven by a 29% increase in Recorded Music revenue and a 15% increase in Music Publishing revenue. Music Publishing revenues represented 66% and 70% of total revenues for the six months ended September 30, 2023 and the six months ended September 30, 2022, respectively. Recorded Music revenues represented 30% and 29% of total revenues for the six months ended September 30, 2023 and the six months ended September 30, 2022, respectively. U.S. and international revenues represented 59% and 41%, respectively of total revenues for the six months ended September 30, 2023 and September 30, 2022. The shift in mix between Music Publishing and Recorded Music was driven primarily by the significant physical sales in the Recorded Music segment for the six months ended September 30, 2023.

Total digital revenues increased by $4,957 thousand, or 15%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, primarily due to the higher royalty rates in effect for 2023 as well as price increases at multiple music streaming services, partially offset by the nonrecurrence of $2.1 million recognized during the six months ended September 30, 2022 for estimated retroactive U.S. royalties related to the 2022 CRB ruling. Total digital revenues represented 53% and 57% of consolidated revenues for the six months ended September 30, 2023 and the six months ended September 30, 2022, respectively.

Music Publishing revenues increased by $6,189 thousand, or 15%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. This increase in Music Publishing revenue was mainly driven by acquisitions of catalogs and revenue from the existing catalog, which led to increases in digital revenue and performance revenue. The increase in digital revenue reflects higher royalty rates in effect for 2023 as well as price increases at multiple music streaming services, which were partially offset by the nonrecurrence of $2.1 million recognized during the six months ended September 30, 2022 for estimated retroactive U.S. royalties related to the 2022 CRB ruling. Synchronization revenue decreased due to timing of synchronization licenses, as well as the writers’ and actors’ strikes in Hollywood.

20

On a geographic basis, U.S. Music Publishing revenues represented 59% of total Music Publishing revenues for the six months ended September 30, 2023 compared to 61% for the six months ended September 30, 2022. International Music Publishing revenues represented 41% of total Music Publishing revenues for the six months ended September 30, 2023 compared to 39% for the six months ended September 30, 2022. The decrease in the U.S. percentage for the six months ended September 30, 2023 was driven primarily by the nonrecurrence of $2.1 million recognized during the six months ended September 30, 2022 for estimated retroactive U.S. royalties related to the 2022 CRB ruling.

Recorded Music revenues increased by $4,748 thousand, or 29%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. The increase in Recorded Music revenue was driven by an increase in physical revenue and the continued growth at music streaming services. The $3,318 thousand increase in physical revenue was primarily due to De La Soul releases for Tommy Boy and the timing of the Chrysalis’ release schedule. The $817 thousand decrease in synchronization revenue was primarily due to timing of synchronization licenses, as well as the writers’ and actors’ strikes in Hollywood.

On a geographic basis, U.S. Recorded Music revenues represented 54% of total Recorded Music revenues for the six months ended September 30, 2023 compared to 53% for the six months ended September 30, 2022. International Recorded Music revenues represented 46% of total Recorded Music revenues for the six months ended September 30, 2023 compared to 47% for the six months ended September 30, 2022.

Cost of Revenues

Our cost of revenues was composed of the following amounts (in thousands):

	For the Three Months								For the Six Months
	Ended September 30,				2023 vs. 2022				Ended September 30,				2023 vs. 2022
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Writer royalties and other publishing costs	$	11,268	$	11,853	$	(585)	(5)	%	$	20,773	$	19,605	$	1,168	6	%
Artist royalties and other recorded music costs		3,174		2,087		1,087	52	%		7,141		4,310		2,831	66	%
Total cost of revenue	$	14,442	$	13,940	$	502	4	%	$	27,914	$	23,915	$	3,999	17	%

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Cost of revenues increased by $502 thousand, or 4%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Cost of revenues as a percentage of revenues decreased to 38% for the three months ended September 30, 2023 from 42% for the three months ended September 30, 2022.

Writer royalties and other publishing costs for the Music Publishing segment decreased by $585 thousand, or 5%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Writer royalties and other publishing costs as a percentage of Music Publishing revenues decreased to 43% for the three months ended September 30, 2023 from 49% for the three months ended September 30, 2022. The increase in margins was due to the change in the mix of revenue by type and songwriting clients with their specific contractual royalty rates being applied to the revenues.

Artist royalties and other recorded music costs for the Recorded Music segment increased by $1,087 thousand, or 52%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. This increase was due primarily to an increase in revenue as well as a shift to a larger portion of revenue coming from physical product which carries a much higher cost. Artist royalties and other recorded music costs as a percentage of recorded music revenues increased to 29% for the three months ended September 30, 2023 from 23% for the three months ended September 30, 2022. The increase in artist royalties and other recorded music costs and decrease in margins were due primarily to the change in the mix of sales by type to a higher percentage of physical sales, which carry higher costs than other types of revenue.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Cost of revenues increased by $3,999 thousand, or 17%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. Cost of revenues as a percentage of revenues decreased to 40% for the six months ended September 30, 2023 from 42% for the six months ended September 30, 2022.

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Writer royalties and other publishing costs for the Music Publishing segment increased by $1,168 thousand, or 6%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. Writer royalties and other publishing costs as a percentage of Music Publishing revenues decreased to 44% for the six months ended September 30, 2023 from 48% for the six months ended September 30, 2022. The increase in margins was due to the change in the mix of revenue by type and songwriting clients with their specific contractual royalty rates being applied to the revenues.

Artist royalties and other recorded music costs for the Recorded Music segment increased by $2,831 thousand, or 66%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. This increase was due primarily to an increase in revenue as well as a shift to a larger portion of revenue coming from physical product which carries a much higher cost. Artist royalties and other recorded music costs as a percentage of recorded music revenues increased to 34% for the six months ended September 30, 2023 from 26% for the six months ended September 30, 2022. The increase in artist royalties and other recorded music costs and decrease in margins were due primarily to the change in the mix of sales by type to a higher percentage of physical sales, which carry higher costs than other types of revenue.

Amortization and Depreciation

Our amortization and depreciation expenses are composed of the following amounts (in thousands):

	For the Three Months								For the Six Months
	Ended September 30,					2023 vs. 2022			Ended September 30,				2023 vs. 2022
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Music Publishing amortization and depreciation	$	4,791	$	4,010	$	781	19	%	$	9,095	$	7,964	$	1,130	14	%
Recorded Music amortization and depreciation		1,399		1,353		46	3	%		3,128		2,737		391	14	%
Other amortization and depreciation		25		21		4	17	%		47		44		3	8	%
Total amortization and depreciation	$	6,215	$	5,384	$	830	15	%	$	12,270	$	10,746	$	1,524	14	%

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Amortization and depreciation expense increased by $830 thousand, or 15%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, driven by increases in both the Music Publishing and Recorded Music segments. Music Publishing amortization and depreciation expense increased by $781 thousand, or 19%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily due to the acquisition of additional music catalogs. Recorded Music amortization and depreciation increased by $46 thousand, or 3%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily due to the acquisition of additional music catalogs.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Amortization and depreciation expense increased by $1,524 thousand, or 14%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, driven by increases in both the Music Publishing and Recorded Music segments. Music Publishing amortization and depreciation expense increased by $1,130 thousand, or 14%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, primarily due to the acquisition of additional music catalogs. Recorded Music amortization and depreciation increased by $391 thousand, or 14%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, primarily due to the acquisition of additional music catalogs.

22

Administration Expenses

Our administration expenses are composed of the following amounts (in thousands):

	For the Three Months								For the Six Months
	Ended September 30,				2023 vs. 2022				Ended September 30,				2023 vs. 2022
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Music Publishing administration expenses	$	8,438	$	5,126	$	3,312	65	%	$	14,025	$	10,128	$	3,897	38	%
Recorded Music administration expenses		2,124		1,978		146	7	%		5,049		4,359		690	16	%
Other administration expenses		1,033		270		763	283	%		1,686		508		1,178	232	%
Total administration expenses	$	11,595	$	7,374	$	4,221	57	%	$	20,760	$	14,995	$	5,765	38	%

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Total administration expenses increased by $4,221 thousand, or 57%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, reflecting increases in both the Music Publishing and Recorded Music segments, as well as an increase in Other administration expenses. Approximately $2,700 thousand of the increase relates to the write-off of recoupable legal expenses and attorneys’ fees incurred in connection with the Royalty Dispute described in Note 15 to the accompanying condensed consolidated financial statements (the “Recoupable legal fee write-off”). Expressed as a percentage of revenues, administration expenses increased to 30% for the three months ended September 30, 2023 from 22% for the three months ended September 30, 2022, primarily due to the Recoupable legal fee write-off.

Music Publishing administration expenses increased by $3,312 thousand, or 65%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Expressed as a percentage of revenues, Music Publishing administration expenses increased to 33% for the three months ended September 30, 2023 from 21% for the three months ended September 30, 2022, primarily as a result of the Recoupable legal fee write-off.

Recorded Music administration expenses increased by $146 thousand, or 7%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Expressed as a percentage of revenue, Recorded Music administration expenses decreased to 20% for the three months ended September 30, 2023 from 22% for the three months ended September 30, 2022, primarily due to taking advantage of operating leverage on the Recorded Music platform.

Other administration expenses increased by $763 thousand, or 283%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily due to selling expenses associated with our artist management business, consisting mostly of manager compensation.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Total administration expenses increased by $5,765 thousand, or 38%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, reflecting increases in both the Music Publishing and Recorded Music segments, as well as an increase in Other administration expenses. Approximately $2,700 thousand of the increase relates to the Recoupable legal fee write-off. Expressed as a percentage of revenues, administration expenses increased to 30% for the six months ended September 30, 2023 from 26% for the six months ended September 30, 2022, primarily as a result of the Recoupable legal fee write-off.

Music Publishing administration expenses increased by $3,897 thousand, or 38%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. Expressed as a percentage of revenues, Music Publishing administration expenses increased to 30% for the six months ended September 30, 2023 from 25% for the six months ended September 30, 2022, primarily as a result of the Recoupable legal fee write-off.

Recorded Music administration expenses increased by $690 thousand, or 16%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. Expressed as a percentage of revenue, Recorded Music administration expenses decreased to 24% for the six months ended September 30, 2023 from 26% for the six months ended September 30, 2022, primarily due to taking advantage of operating leverage on the Recorded Music platform.

23

Other administration expenses increased by $1,178 thousand, or 232%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, primarily due to selling expenses associated with our artist management business, consisting mostly of manager compensation.

Interest Expense

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Interest expense increased by $2,255 thousand, or 64%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Approximately $620 thousand of this increase was incurred in connection with settlement of the Royalty Dispute described in Note 15 to the accompanying condensed consolidated financial statements. The remaining increase was primarily driven by increased debt balances due to use of funds in acquisitions of music catalogs and writer signings, as well as increases in SOFR.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Interest expense increased by $4,012 thousand, or 62%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. Approximately $620 thousand of this increase was incurred in connection with settlement of the Royalty Dispute described in Note 15 to the accompanying condensed consolidated financial statements. The remaining increase was primarily driven by increased debt balances due to use of funds in acquisitions of music catalogs and writer signings, as well as increases in SOFR.

(Loss) Gain on Foreign Exchange

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Loss on foreign exchange was $40 thousand for the three months ended September 30, 2023 compared to a gain on foreign exchange of $173 thousand for the three months ended September 30, 2022. This change was due to fluctuations in the two foreign currencies we are directly exposed to, namely British pound sterling and euro.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Loss on foreign exchange was $70 thousand for the six months ended September 30, 2023 compared to a gain on foreign exchange of $281 thousand for the six months ended September 30, 2022. This change was due to fluctuations in the two foreign currencies we are directly exposed to, namely British pound sterling and euro.

Gain on Fair Value of Swaps

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Gain on fair value of swaps decreased by $2,304 thousand during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. This change was due to marking to market our interest rate swap hedges.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Gain on fair value of swaps decreased by $2,029 thousand during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. This change was due to marking to market our interest rate swap hedges.

Income Tax Expense

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Income tax expense was $292 thousand during the three months ended September 30, 2023 compared to $1,682 thousand during the three months ended September 30, 2022. The effective income tax rate during the three months ended September 30, 2023 was

24

29.9% compared to 27.3% during the three months ended September 30, 2022. The increase in the effective income tax rate was driven primarily by changes in the mix of income from multiple tax jurisdictions.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Income tax expense was $354 thousand during the six months ended September 30, 2023 compared to $1,688 thousand during the six months ended September 30, 2022. The effective income tax rate during the six months ended September 30, 2023 was 29.5% compared to 27.3% during the six months ended September 30, 2022. The increase in the effective income tax rate was driven primarily by changes in the mix of income from multiple tax jurisdictions.

Net Income

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Net income was $682 thousand during the three months ended September 30, 2023 compared to $4,486 thousand during the three months ended September 30, 2022. The decrease in net income was driven primarily by a $2,304 thousand decrease in Gain on fair value of swaps, a $2,255 thousand increase in interest expense and a $422 thousand decrease in operating income. These factors were partially offset by a $1,391 thousand decrease in income tax expense.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Net income was $847 thousand during the six months ended September 30, 2023 compared to $4,503 thousand during the six months ended September 30, 2022. The decrease in net income was driven primarily by a $4,012 thousand increase in interest expense and a $2,029 thousand decrease in Gain on fair value of swaps. These factors were partially offset by a $1,402 thousand increase in operating income and a $1,334 thousand decrease in income tax expense.

Non-GAAP Reconciliations

We use certain financial information, such as OIBDA, OIBDA Margin, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin, which are non-GAAP financial measures, which means they have not been prepared in accordance with U.S. GAAP. Reservoir’s management uses these non-GAAP financial measures to evaluate our operations, measure its performance and make strategic decisions. We believe that the use of these non-GAAP financial measures provides useful information to investors and others in understanding our results of operations and trends in the same manner as our management and in evaluating our financial measures as compared to the financial measures of other similar companies, many of which present similar non-GAAP financial measures. However, these non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by our management about which items are excluded or included in determining these non-GAAP financial measures and, therefore, should not be considered as a substitute for net income, operating income or any other operating performance measures calculated in accordance with GAAP. Using such non-GAAP financial measures in isolation to analyze our business would have material limitations because the calculations are based on the subjective determination of our management regarding the nature and classification of events and circumstances. In addition, although other companies in our industry may report measures titled OIBDA, OIBDA margin, Adjusted EBITDA, and Adjusted EBITDA Margin, or similar measures, such non-GAAP financial measures may be calculated differently from how we calculate such non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, such non-GAAP financial measures should be considered alongside other financial performance measures and other financial results presented in accordance with GAAP. Reconciliations of OIBDA to operating income and EBITDA and Adjusted EBITDA to net income are provided below.

We consider operating income before non-cash depreciation of tangible assets and non-cash amortization of intangible assets (“OIBDA”) to be an important indicator of the operational strengths and performance of our businesses and believe this non-GAAP financial measure provides useful information to investors because it removes the significant impact of amortization from our results of operations and represents our measure of segment income. However, a limitation of the use of OIBDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our businesses and other non-operating income (loss). Accordingly, OIBDA should be considered in addition to, not as a substitute for, operating income, net income attributable to us and other measures of financial performance reported in accordance with GAAP. In addition, our definition of OIBDA may differ from similarly titled measures used by other companies. OIBDA Margin is defined as OIBDA as a percentage of revenue.

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EBITDA is defined as earnings (net income or loss) before net interest expense, income tax expense, non-cash depreciation of tangible assets and non-cash amortization of intangible assets and is used by management to measure operating performance of the business. Adjusted EBITDA is defined as EBITDA further adjusted to exclude items or expenses such as, among others, (1) any non-cash charges (including any impairment charges), (2) any net gain or loss on foreign exchange, (3) any net gain or loss resulting from interest rate swaps, (4) equity-based compensation expense and (5) certain unusual or non-recurring items. Adjusted EBITDA is a key measure used by our management to understand and evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. However, certain limitations on the use of Adjusted EBITDA include, among others, (1) it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue for our business, (2) it does not reflect the significant interest expense or cash requirements necessary to service interest or principal payments on our indebtedness and (3) it does not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments. In particular, Adjusted EBITDA measure adds back certain non-cash, unusual or non-recurring charges that are deducted in calculating net income; however, these are expenses that may recur, vary greatly and are difficult to predict. In addition, Adjusted EBITDA is not the same as net income or cash flow provided by operating activities as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue.

Reconciliation of Operating Income to OIBDA

We use OIBDA as our primary measure of financial performance. The following tables reconcile operating income to OIBDA (in thousands):

	Consolidated
	For the Three Months										For the Six Months
	Ended September 30,						2023 vs. 2022				Ended September 30,						2023 vs. 2022
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
Operating income	$	6,145		$	6,567		$	(422)	(6)	%	$	9,290		$	7,888		$	1,402	18	%
Amortization and depreciation expenses		6,215			5,384			831	15	%		12,270			10,746			1,524	14	%
OIBDA	$	12,360		$	11,951		$	409	3	%	$	21,560		$	18,634		$	2,926	16	%
OIBDA Margin		32	%		36	%						31	%		32	%

	Music Publishing
	For the Three Months											For the Six Months
	Ended September 30,							2023 vs. 2022				Ended September 30,						2023 vs. 2022
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
Operating income	$	1,411		$	3,074		$	(1,663)	(54)	%	$	2,807		$	2,813		$	(6)	0	%
Amortization and depreciation expenses		4,791			4,010			781	19	%		9,095			7,964			1,131	14	%
OIBDA	$	6,202		$	7,084		$	(882)	(12)	%	$	11,902		$	10,777		$	1,125	10	%
OIBDA Margin		24	%		29	%						25	%		27	%

	Recorded Music
	For the Three Months										For the Six Months Ended
	Ended September 30,						2023 vs. 2022				September 30,						2023 vs. 2022
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
Operating income	$	4,130		$	3,476		$	654	19	%	$	5,894		$	5,058		$	836	17	%
Amortization and depreciation expenses		1,399			1,353			46	3	%		3,128			2,737			391	14	%
OIBDA	$	5,529		$	4,829		$	700	14	%	$	9,022		$	7,795		$	1,227	16	%
OIBDA Margin		51	%		54	%						43	%		47	%

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OIBDA

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Consolidated OIBDA increased by $409 thousand, or 3%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, driven by a $700 thousand increase in Recorded Music OIBDA and a $591 thousand increase in Other OIBDA, partially offset by an $882 thousand decrease in Music Publishing OIBDA, including the impact of the Recoupable legal fee write-off. Expressed as a percentage of revenue, OIBDA Margin decreased to 32% for the three months ended September 30, 2023 from 36% for the three months ended September 30, 2022.

Music Publishing OIBDA decreased by $882 thousand, or 12%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Expressed as a percentage of revenue, Music Publishing OIBDA Margin decreased to 24% in the three months ended September 30, 2023 from 29% in the three months ended September 30, 2022. The decreases in Music Publishing OIBDA and OIBDA Margin reflect the impact of the Recoupable legal fee write-off, partially offset by revenue growth and improved margins.

Recorded Music OIBDA increased by $700 thousand, or 14% during the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Expressed as a percentage of revenue, Recorded Music OIBDA Margin decreased to 51% during the three months ended September 30, 2023 from 54% in the three months ended September 30, 2022. This decrease is primarily driven by a decrease in margins due to the change in the mix of sales by type to a higher percentage of physical sales, partially offset by improved operating leverage on the Recorded Music platform.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Consolidated OIBDA increased by $2,926 thousand, or 16%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, driven by a $1,227 thousand increase in Recorded Music OIBDA and $1,125 thousand increase in Music Publishing OIBDA. Expressed as a percentage of revenue, OIBDA Margin decreased to 31% for the six months ended September 30, 2023 from 32% for the six months ended September 30, 2022.

Music Publishing OIBDA increased by $1,125 thousand, or 10%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. Expressed as a percentage of revenue, Music Publishing OIBDA Margin decreased to 25% in the six months ended September 30, 2023 from 27% in the six months ended September 30, 2022. The increase in Music Publishing OIBDA reflects revenue growth and the decrease in OIBDA Margin reflects the Recoupable legal fee write-off, partially offset by improved margins.

Recorded Music OIBDA increased by $1,227 thousand, or 16% during the six months ended September 30, 2023 compared to the six months ended September 30, 2022. Expressed as a percentage of revenue, Recorded Music OIBDA Margin decreased to 43% during the six months ended September 30, 2023 from 47% in the six months ended September 30, 2022. This decrease is primarily driven by a decrease in margins due to the change in the mix of sales by type to a higher percentage of physical sales, partially offset by improved operating leverage on the Recorded Music platform.

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Reconciliation of Net Income to EBITDA and Adjusted EBITDA

The following table reconciles net income to Adjusted EBITDA (in thousands):

	For the Three Months								For the Six Months
	Ended September 30,				2023 vs. 2022				Ended September 30,				2023 vs. 2022
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Net income	$	682	$	4,486	$	(3,804)	(85)	%	$	847	$	4,503	$	(3,656)	(81)	%
Income tax expense		292		1,682		(1,390)	(83)	%		354		1,688		(1,334)	(79)	%
Interest expense		5,760		3,505		2,255	64	%		10,493		6,481		4,012	62	%
Amortization and depreciation		6,215		5,384		831	15	%		12,270		10,746		1,524	14	%
EBITDA		12,949		15,057		(2,108)	(14)	%		23,964		23,418		546	2	%
Loss (gain) on foreign exchange(a)		40		(173)		213	(123)	%		70		(281)		351	(125)	%
Gain on fair value of swaps(b)		(628)		(2,932)		2,304	(79)	%		(2,473)		(4,503)		2,030	(45)	%
Non-cash share-based compensation(c)		813		851		(38)	(4)	%		1,727		1,617		110	7	%
Recoupable legal fee write-off(d)		2,695		—		2,695	NM			2,695		—		2,695	NM
Other (income) expense, net		—		—		—	NM			(1)		—		(1)	NM
Adjusted EBITDA	$	15,869	$	12,803	$	3,066	24	%	$	25,982	$	20,251	$	5,731	28	%

NM - Not meaningful

(a)Reflects the loss or (gain) on foreign exchange fluctuations.

(b)Reflects the non-cash gain on the mark-to-market of interest rate swaps.

(c)Reflects non-cash share-based compensation expense related to the Reservoir Media, Inc. 2021 Omnibus Incentive Plan.

(d)Reflects the write-off of recoupable legal expenses and attorneys’ fees incurred in connection with the Royalty Dispute described in Note 15 to the accompanying condensed consolidated financial statements

Three Months Ended September 30, 2023 vs. Three Months Ended September 30, 2022

Consolidated Adjusted EBITDA increased by $3,066 thousand, or 24%, during the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily as a result of revenue growth. Adjusted EBITDA Margin increased to 41% during the three months ended September 30, 2023 compared to 38% during the three months ended September 30, 2022, primarily due to improved operating leverage.

Six Months Ended September 30, 2023 vs. Six Months Ended September 30, 2022

Consolidated Adjusted EBITDA increased by $5,731 thousand, or 28%, during the six months ended September 30, 2023 compared to the six months ended September 30, 2022, primarily as a result of revenue growth. Adjusted EBITDA Margin increased to 37% during the six months ended September 30, 2023 compared to 35% during the six months ended September 30, 2022, primarily due to improved operating leverage.

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Liquidity and Capital Resources

Capital Resources

As of September 30, 2023, we had $332,134 thousand of debt (net of $5,694 thousand of deferred financing costs) and $20,555 thousand of cash and cash equivalents.

Cash Flows

The following table summarizes our historical cash flows (in thousands).

	For the Six Months Ended
	September 30,				2023 vs.2022
	2023		2022		$ Change		% Change
Cash provided by (used in):
Operating activities	$	18,857	$	11,626	$	7,231	62	%
Investing activities	$	(32,516)	$	(15,955)	$	(16,561)	104	%
Financing activities	$	19,573	$	6,517	$	13,056	200	%

Operating Activities

Cash provided by operating activities was $18,857 thousand for the six months ended September 30, 2023 compared to $11,626 thousand for the six months ended September 30, 2022. The primary driver of the $7,231 thousand increase in cash provided by operating activities during the six months ended September 30, 2023 as compared to the six months ended September 30, 2022 was the timing of accounts receivable collections and payments of accounts payable and accrued liabilities.

Investing Activities

Cash used in investing activities was $32,516 thousand for the six months ended September 30, 2023 compared to $15,955 thousand for the six months ended September 30, 2022. The increase in cash used in investing activities was primarily due to increased acquisitions of music catalogs.

Financing Activities

Cash provided by financing activities was $19,573 thousand for the six months ended September 30, 2023 compared to $6,517 thousand for the six months ended September 30, 2022. The increase in cash provided by financing activities in the six months ended September 30, 2023 reflects an increase in net borrowings used for investing activities.

Liquidity

Our primary sources of liquidity are the cash flows generated from our subsidiaries’ operations, available cash and cash equivalents and funds available for drawing under our Senior Credit Facility (as described below). These sources of liquidity are needed to fund our debt service requirements, working capital requirements, strategic acquisitions and investments, capital expenditures and other investing and financing activities we may elect to make in the future.

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We believe that our primary sources of liquidity will be sufficient to support our existing operations over the next twelve months.

Existing Debt as of September 30, 2023

As of September 30, 2023, our outstanding debt consisted of $337,828 thousand borrowed under the Senior Credit Facility. As of September 30, 2023, remaining borrowing availability under the Senior Credit Facility was $112,172 thousand.

We use cash generated from operations to service outstanding debt, consisting primarily of interest payments through maturity, and we expect to continue to refinance and extend maturity on the Senior Credit Facility for the foreseeable future.

Debt Capital Structure

On December 16, 2022, RMM entered into an amendment (the “Second Amendment”) to the RMM Credit Agreement. The Second Amendment amended the RMM Credit Agreement governing RMM’s secured revolving credit facility (the “Senior Credit Facility”). The Second Amendment amended the RMM Credit Agreement to (i) increase RMM’s senior secured revolving credit facility from $350,000 thousand to $450,000 thousand, (ii) increase the incremental borrowing available under the facility’s accordion feature from $50,000 thousand to $150,000 thousand , (iii) extend the maturity date of the loans advanced under the RMM Credit Agreement from October 16, 2024 to December 16, 2027, (iv) modify the interest rate to be equal to either the sum of a base rate plus a margin of 1.00% or the sum of a SOFR rate plus a margin of 2.00%, in each case subject to a 0.25% increase based on a consolidated net senior debt to library value ratio, (v) remove the existing total leverage ratio financial covenant of no greater than 7.50:1.00 (net of up to $20,000 thousand of certain cash balances) as of the end of each fiscal quarter, (vi) reduce the minimum required fixed charge coverage ratio financial covenant to 1.10:1.00 and (vii) modify the consolidated senior debt to library value ratio financial covenant to 0.450, subject to certain adjustments. RMM is also required to pay an unused fee in respect of unused commitments under the Senior Credit Facility, if any, at a rate of 0.25% per annum.

Subject to market conditions, we expect to continue to take opportunistic steps to extend our maturity dates and reduce related interest expense. From time to time, we may incur additional indebtedness for, among other things, working capital, repurchasing, redeeming or tendering for existing indebtedness and acquisitions or other strategic transactions.

Certain terms of the Senior Credit Facility are described below.

Guarantees and Security

The obligations under the Senior Credit Facility are guaranteed by us, RHI and subsidiaries of RMM. Substantially all of our, RHI’s, RMM’s and other subsidiary guarantors’ tangible and intangible assets are pledged as collateral to secure the obligations of RMM under the Senior Credit Facility, including accounts receivable, cash and cash equivalents, deposit accounts, securities accounts, commodities accounts, inventory and certain intercompany debt owing to us or our subsidiaries.

Covenants, Representations and Warranties

The Senior Credit Facility contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants contained in the Senior Credit Facility limit the ability our, RHI’s, RMM’s and certain of its subsidiaries ability to, among other things, incur debt or liens, merge or consolidate with others, make investments, make cash dividends, redeem or repurchase capital stock, dispose of assets, enter into transactions with affiliates or enter into certain restrictive agreements.

Events of Default

The Senior Credit Facility includes customary events of default, including nonpayment of principal when due, nonpayment of interest or other amounts, inaccuracy of representations or warranties in any material respect, violation of covenants, certain bankruptcy or insolvency events, certain ERISA events and certain material judgments, in each case, subject to customary thresholds, notice and grace period provisions.

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Covenant Compliance

The Senior Credit Facility contains financial covenants that requires us, on a consolidated basis with our subsidiaries, to maintain, (i) a fixed charge coverage ratio of not less than 1.10:1.00 for each four fiscal quarter period, and (ii) a consolidated senior debt to library value ratio of no greater than 0.45:1.00, subject to certain adjustments.

Non-compliance with the fixed charge coverage ratio and consolidated senior debt to library value ratio could result in the lenders, subject to customary cure rights, requiring the immediate payment of all amounts outstanding under the Senior Credit Facility, which could have a material adverse effect on our business, cash flows, financial condition and results of operations. As of September 30, 2023, we were in compliance with both of the financial covenants under the Senior Credit Facility.

Interest Rate Swaps

At September 30, 2023, RMM had the following interest rate swaps outstanding, under which it pays a fixed rate and receives a floating interest payment from the counterparty based on SOFR with reference to notional amounts adjusted to match the amended scheduled principal repayments pursuant to the Senior Credit Facility (in thousands):

	Notional
	Amount at
Effective Date	September 30, 2023		Pay Fixed Rate		Maturity
March 10, 2022	$	8,000	1.533	%	September 2024
March 10, 2022	$	87,681	1.422	%	September 2024
December 31, 2021	$	54,319	0.972	%	September 2024
September 30, 2024	$	100,000	2.946	%	December 2027

Dividends

Our ability to pay dividends is restricted by covenants in the Senior Credit Facility. We did not pay any dividends to stockholders during the three and six months ended September 30, 2023.

Summary

Management believes that funds generated from our operations, borrowings under the Senior Credit Facility and available cash and equivalents will be sufficient to fund our debt service requirements, working capital requirements and capital expenditure requirements for the foreseeable future. However, our ability to continue to fund these items and to reduce debt may be affected by general economic, financial, competitive, legislative and regulatory factors, as well as other industry-specific factors such as the ability to control music piracy and the continued transition from physical to digital formats in the recorded music and music publishing industries. It could also be affected by the severity and duration of natural or human-made disasters, including pandemics such as the COVID-19 pandemic. We and our affiliates continue to evaluate opportunities to, from time to time, depending on market conditions and prices, contractual restrictions, our financial liquidity and other factors, seek to pay dividends or prepay outstanding debt or repurchase or retire our outstanding debt. The amounts involved in any such transactions, individually or in the aggregate, may be material and may be funded from available cash or from additional borrowings or equity raises. In addition, from time to time, depending on market conditions and prices, contractual restrictions, our financial liquidity, and other factors, we may seek to refinance the Senior Credit Facility with existing cash and/or with funds provided from additional borrowings.

Contractual and Other Obligations

As of September 30, 2023, there have been no material changes, outside the ordinary course of business, in our contractual obligations since March 31, 2023. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Contractual and Other Obligations” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on May 31, 2023 for information regarding our contractual obligations.

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Critical Accounting Policies

As of September 30, 2023, there have been no material changes to our critical accounting policies since March 31, 2023. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on May 31, 2023 for information regarding our critical accounting policies. We believe that our accounting policies involve a high degree of judgment and complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of our operations. The preparation of our condensed consolidated financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the amounts reported in those condensed consolidated financial statements and the accompanying notes thereto. We believe we have used reasonable estimates and assumptions in preparing the condensed consolidated financial statements. Although we believe that the estimates we use are reasonable, due to the inherent uncertainty involved in making those estimates, actual results reported in future periods could differ from those estimates.

Off-Balance Sheet Arrangements

As of September 30, 2023, we had no off-balance sheet arrangements.

New Accounting Pronouncements

See Note 3, “Recent Accounting Pronouncements” to the accompanying unaudited condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item 3, “Quantitative and Qualitative Disclosures About Market Risk.”

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of September 30, 2023, as such term is defined in Rules 13a-15(e) and 15(d)-15(e) under the Exchange Act.

As a result of the material weaknesses in our internal controls over financial reporting, as previously disclosed under Part II “Item 9A, Controls and Procedures” in our Annual Report on Form 10-K for the year ended March 31, 2023 (the “Annual Report”), our principal executive officer and principal financial and accounting officer concluded that during the period covered by this Quarterly Report our disclosure controls and procedures were not effective as of September 30, 2023. Notwithstanding these material weaknesses, management has concluded that the condensed consolidated financial statements included in this Quarterly Report are fairly stated in all material respects in accordance with U.S. GAAP.

Remediation Plan and Status of Material Weaknesses

We continue to take steps to remediate the material weaknesses described in our Annual Report by hiring additional qualified accounting personnel and further evolving our accounting processes. Specifically, since the material weakness related to the lack of qualified personnel was identified, we retained third party experts on complex technical accounting issues and taxes, as well as hired additional accounting personnel with the requisite experience to improve the process around financial reporting. We are actively improving our risk assessment activities, implementing corrective actions to support our remediation of the material weaknesses noted above. This includes, but is not limited to, providing training to process and control owners, enhancing relevant policies, procedures, guidelines and documentation templates, implementing new controls and improving documentation supporting existing controls, and enhancing segregation of duties by reducing access to our Enterprise Resource Planning (ERP) system. The evaluation over whether these improved control activities have been designed effectively, is ongoing.

In future periods, we will ensure that the improved processes and controls have been designed and implemented effectively, and we will also evaluate the operating effectiveness of the new and redesigned controls.

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We will not be able to fully remediate these material weaknesses until the applicable controls operate for a sufficient period of time, and we have concluded, through testing, that the newly implemented and enhanced controls are operating effectively. Our management will continue to monitor the effectiveness of our remediation plans in future periods and will make changes we determine to be appropriate.

Changes in Internal Control over Financial Reporting

Except as disclosed above, there have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Controls and Procedures

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all cases of error and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We may, from time to time, become involved in various legal and administrative proceedings, claims, lawsuits and/or other actions incidental to the conduct of our business. Some of these legal and administrative proceedings, claims, lawsuits and/or other actions may be material and involve highly complex issues that are subject to substantial uncertainties and could result in damages, fines, penalties, non-monetary sanctions or relief. We recognize provisions for claims or pending litigation when we determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Due to the inherently uncertain nature of litigation, the ultimate outcome or actual cost of settlement may materially vary from estimates. As of the date of this Quarterly Report, we are not involved in any legal proceedings that we believe could have a material adverse effect on our business, financial condition and/or results of operations.

Item 1A. Risk Factors.

There have been no material changes in the Company’s risk factors from those disclosed in Part I, Item 1A to the Company’s Annual Report for the year ended March 31, 2023. The risk factors disclosed in the Annual Report, in addition to the other information set forth in this report, could materially affect our business, financial condition or results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There have been no other unregistered sales of equity securities during the three months ended September 30, 2023, which have not been previously disclosed on a Current Report on Form 8-K.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.

No.	Description of Exhibit
31.1*	Certification of Chief Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

† Certain of the schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant hereby undertakes to furnish copies of any of the omitted schedules or exhibits upon request by the SEC.

* Filed herewith.

** Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	RESERVOIR MEDIA, INC.
Date: November 7, 2023	By:	/s/ Golnar Khosrowshahi
		Name: Golnar Khosrowshahi
		Title: Chief Executive Officer (Principal Executive Officer)
Date: November 7, 2023	By:	/s/ Jim Heindlmeyer
		Name: Jim Heindlmeyer
		Title: Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Golnar Khosrowshahi, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Reservoir Media, Inc. (the “registrant”);

2. Based on my knowledge, this Quarterly Report on Form 10-Q does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report on Form 10-Q;

3. Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report on Form 10-Q, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report on Form 10-Q;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Quarterly Report on Form 10-Q our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report on Form 10-Q based on such evaluation; and

d) Disclosed in this Quarterly Report on Form 10-Q any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2023
	By:	/s/ Golnar Khosrowshahi
		Name: Golnar Khosrowshahi
		Title: Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jim Heindlmeyer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Reservoir Media, Inc. (the “registrant”);

2. Based on my knowledge, this Quarterly Report on Form 10-Q does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report on Form 10-Q;

3. Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report on Form 10-Q, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report on Form 10-Q;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Quarterly Report on Form 10-Q our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report on Form 10-Q based on such evaluation; and

d) Disclosed in this Quarterly Report on Form 10-Q any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2023
	By:	/s/ Jim Heindlmeyer
		Name: Jim Heindlmeyer
		Title: Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Reservoir Media, Inc. (the “Company”) for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Golnar Khosrowshahi, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended, that:

● the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

● the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 7, 2023
	By:	/s/ Golnar Khosrowshahi
		Name: Golnar Khosrowshahi
		Title: Chief Executive Officer (Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Reservoir Media, Inc. (the “Company”) for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jim Heindlmeyer, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended, that:

● the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

● the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 7, 2023
	By:	/s/ Jim Heindlmeyer
		Name: Jim Heindlmeyer
		Title: Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-39795
Entity Registrant Name	RESERVOIR MEDIA, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-3584204
Entity Address, Address Line One	200 Varick Street
Entity Address, Address Line Two	Suite 801A
Entity Address, City or Town	NY
Entity Address State Or Province	NY
Entity Address, Postal Zip Code	10014
City Area Code	212
Local Phone Number	675-0541
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		64,810,835
Entity Central Index Key	0001824403
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Title of 12(b) Security	Common Stock, $0.0001 par value per share (the “Common Stock”)
Trading Symbol	RSVR
Security Exchange Name	NASDAQ
Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share
Title of 12(b) Security	Warrants to purchase one share of CommonStock, each at an exercise price of $11.50 per share
Trading Symbol	RSVRW
Security Exchange Name	NASDAQ

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Revenues	$ 38,397,300	$ 33,265,711	$ 70,233,886	$ 57,544,481
Costs and expenses:
Cost of revenue	14,442,666	13,940,035	27,914,263	23,915,166
Amortization and depreciation	6,214,540	5,384,341	12,270,108	10,745,844
Administration expenses	11,595,004	7,373,880	20,759,504	14,995,490
Total costs and expenses	32,252,210	26,698,256	60,943,875	49,656,500
Operating income	6,145,090	6,567,455	9,290,011	7,887,981
Interest expense	(5,759,506)	(3,504,818)	(10,493,039)	(6,480,878)
(Loss) gain on foreign exchange	(40,156)	173,343	(70,092)	280,686
Gain on fair value of swaps	628,091	2,932,443	2,473,478	4,502,780
Other income (expense), net	474	34	536	47
Income before income taxes	973,993	6,168,457	1,200,894	6,190,616
Income tax expense	291,638	1,682,369	353,986	1,687,707
Net income	682,355	4,486,088	846,908	4,502,909
Net (income) loss attributable to noncontrolling interests	(146,965)	50,845	(34,185)	110,063
Net income attributable to Reservoir Media, Inc.	$ 535,390	$ 4,536,933	$ 812,723	$ 4,612,972
Earnings per common share (Note 13):
Basic	$ 0.01	$ 0.07	$ 0.01	$ 0.07
Diluted	$ 0.01	$ 0.07	$ 0.01	$ 0.07
Weighted average common shares outstanding (Note 13):
Basic	64,783,974	64,349,375	64,684,082	64,286,797
Diluted	65,085,654	64,789,384	65,031,488	64,786,947

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 682,355	$ 4,486,088	$ 846,908	$ 4,502,909
Other comprehensive loss:
Translation adjustments	(2,198,433)	(4,924,010)	(1,058,957)	(9,935,573)
Total comprehensive loss	(1,516,078)	(437,922)	(212,049)	(5,432,664)
Comprehensive (income) loss attributable to noncontrolling interests	(146,965)	50,845	(34,185)	110,063
Total comprehensive loss attributable to Reservoir Media, Inc.	$ (1,663,043)	$ (387,077)	$ (246,234)	$ (5,322,601)

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2023	Mar. 31, 2023
Current assets
Cash and cash equivalents	$ 20,555,496	$ 14,902,076
Accounts receivable	29,257,352	31,255,867
Current portion of royalty advances	12,882,031	15,188,656
Inventory and prepaid expenses	6,450,418	5,458,522
Total current assets	69,145,297	66,805,121
Intangible assets, net	635,597,071	617,404,741
Equity method and other investments	2,281,651	2,305,719
Royalty advances, net of current portion	56,442,076	51,737,844
Property, plant and equipment, net	584,184	568,339
Operating lease right of use assets, net	6,866,840	7,356,312
Fair value of swap assets	9,230,362	6,756,884
Other assets	1,322,330	1,147,969
Total assets	781,469,811	754,082,929
Current liabilities
Accounts payable and accrued liabilities	7,022,691	6,680,421
Royalties payable	40,017,207	33,235,235
Accrued payroll	821,049	1,689,310
Deferred revenue	2,549,427	2,151,889
Other current liabilities	9,946,198	10,583,794
Income taxes payable	332,017	204,987
Total current liabilities	60,688,589	54,545,636
Secured line of credit	332,134,211	311,491,581
Deferred income taxes	30,334,187	30,525,523
Operating lease liabilities, net of current portion	6,602,240	7,072,553
Other liabilities	590,519	785,113
Total liabilities	430,349,746	404,420,406
Contingencies and commitments (Note 15)
Shareholders' Equity
Preferred stock, $0.0001 par value 75,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2023 and March 31, 2023
Common stock, $0.0001 par value; 750,000,000 shares authorized, 64,810,835 shares issued and outstanding at September 30, 2023; 64,441,244 shares issued and outstanding at March 31, 2023	6,481	6,444
Additional paid-in capital	340,130,343	338,460,789
Retained earnings	15,565,443	14,752,720
Accumulated other comprehensive loss	(5,914,286)	(4,855,329)
Total Reservoir Media, Inc. shareholders' equity	349,787,981	348,364,624
Noncontrolling interest	1,332,084	1,297,899
Total shareholders' equity	351,120,065	349,662,523
Total liabilities and shareholders' equity	$ 781,469,811	$ 754,082,929

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Mar. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	75,000,000	75,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	64,810,835	64,441,244
Common stock, shares outstanding	64,810,835	64,441,244

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Common Stock	Additional paid-in capital	Retained earnings (accumulated deficit)	Accumulated other comprehensive income (loss)	Noncontrolling interests	Total
Beginning balance at Mar. 31, 2022	$ 6,415	$ 335,372,981	$ 12,213,519	$ (1,198,058)	$ 1,057,467	$ 347,452,324
Beginning balance (in shares) at Mar. 31, 2022	64,150,186
Increase (Decrease) in Stockholders' Equity
Share-based compensation		359,461				359,461
Vesting of restricted stock units	$ 14	(475,872)				(475,858)
Vesting of restricted stock units (in shares)	140,138
Reclassification of liability-classified awards to equity-classified awards		961,429				961,429
Net income (loss)			76,039		(59,218)	16,821
Other comprehensive income (loss)				(5,011,563)		(5,011,563)
Ending balance at Jun. 30, 2022	$ 6,429	336,217,999	12,289,558	(6,209,621)	998,249	343,302,614
Ending balance (in shares) at Jun. 30, 2022	64,290,324
Beginning balance at Mar. 31, 2022	$ 6,415	335,372,981	12,213,519	(1,198,058)	1,057,467	347,452,324
Beginning balance (in shares) at Mar. 31, 2022	64,150,186
Increase (Decrease) in Stockholders' Equity
Net income (loss)						4,502,909
Ending balance at Sep. 30, 2022	$ 6,437	336,959,175	16,826,491	(11,133,631)	947,404	343,605,876
Ending balance (in shares) at Sep. 30, 2022	64,373,904
Beginning balance at Jun. 30, 2022	$ 6,429	336,217,999	12,289,558	(6,209,621)	998,249	343,302,614
Beginning balance (in shares) at Jun. 30, 2022	64,290,324
Increase (Decrease) in Stockholders' Equity
Share-based compensation		596,184				596,184
Vesting of restricted stock units	$ 8	(8)
Vesting of restricted stock units (in shares)	83,580
Reclassification of liability-classified awards to equity-classified awards		145,000				145,000
Net income (loss)			4,536,933		(50,845)	4,486,088
Other comprehensive income (loss)				(4,924,010)		(4,924,010)
Ending balance at Sep. 30, 2022	$ 6,437	336,959,175	16,826,491	(11,133,631)	947,404	343,605,876
Ending balance (in shares) at Sep. 30, 2022	64,373,904
Beginning balance at Mar. 31, 2023	$ 6,444	338,460,789	14,752,720	(4,855,329)	1,297,899	349,662,523
Beginning balance (in shares) at Mar. 31, 2023	64,441,244
Increase (Decrease) in Stockholders' Equity
Share-based compensation		713,802				713,802
Vesting of restricted stock units	$ 21	(689,176)				(689,155)
Vesting of restricted stock units (in shares)	207,733
Reclassification of liability-classified awards to equity-classified awards		664,167				664,167
Net income (loss)			277,333		(112,780)	164,553
Other comprehensive income (loss)				1,139,476		1,139,476
Ending balance at Jun. 30, 2023	$ 6,465	339,149,582	15,030,053	(3,715,853)	1,185,119	351,655,366
Ending balance (in shares) at Jun. 30, 2023	64,648,977
Beginning balance at Mar. 31, 2023	$ 6,444	338,460,789	14,752,720	(4,855,329)	1,297,899	349,662,523
Beginning balance (in shares) at Mar. 31, 2023	64,441,244
Increase (Decrease) in Stockholders' Equity
Net income (loss)						846,908
Ending balance at Sep. 30, 2023	$ 6,481	340,130,343	15,565,443	(5,914,286)	1,332,084	351,120,065
Ending balance (in shares) at Sep. 30, 2023	64,810,835
Beginning balance at Jun. 30, 2023	$ 6,465	339,149,582	15,030,053	(3,715,853)	1,185,119	351,655,366
Beginning balance (in shares) at Jun. 30, 2023	64,648,977
Increase (Decrease) in Stockholders' Equity
Share-based compensation		612,235				612,235
Stock option exercises	$ 5	288,537				288,542
Stock option exercises (in shares)	56,466
Vesting of restricted stock units	$ 11	(11)
Vesting of restricted stock units (in shares)	105,392
Reclassification of liability-classified awards to equity-classified awards		80,000				80,000
Net income (loss)			535,390		146,965	682,355
Other comprehensive income (loss)				(2,198,433)		(2,198,433)
Ending balance at Sep. 30, 2023	$ 6,481	$ 340,130,343	$ 15,565,443	$ (5,914,286)	$ 1,332,084	$ 351,120,065
Ending balance (in shares) at Sep. 30, 2023	64,810,835

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 846,908	$ 4,502,909
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	12,152,021	10,656,334
Depreciation of property, plant and equipment	118,087	89,510
Share-based compensation	1,727,286	1,617,490
Non-cash interest charges	668,544	1,158,685
Gain on fair value of swaps	(2,473,478)	(4,502,780)
Share of earnings of equity affiliates, net of tax		(34,133)
Dividend from equity affiliates		62,306
Changes in operating assets and liabilities:
Accounts receivable	1,998,515	(1,181,423)
Inventory and prepaid expenses	(991,896)	(1,910,295)
Royalty advances	(2,397,607)	(5,456,865)
Other assets and liabilities	187,764	(120,854)
Accounts payable and accrued expenses	6,893,749	5,050,386
Income taxes payable	127,030	1,694,732
Net cash provided by operating activities	18,856,923	11,626,002
Cash flows from investing activities:
Purchases of music catalogs	(32,382,393)	(15,793,674)
Purchase of property, plant and equipment	(133,932)	(161,338)
Net cash used for investing activities	(32,516,325)	(15,955,012)
Cash flows from financing activities:
Proceeds from secured line of credit	20,000,000	7,000,000
Proceeds from stock option exercises	288,542
Taxes paid related to net share settlement of restricted stock units	(689,155)	(475,858)
Deferred financing costs paid	(25,914)	(6,975)
Net cash provided by financing activities	19,573,473	6,517,167
Foreign exchange impact on cash	(260,651)	(1,181,185)
Increase in cash and cash equivalents	5,653,420	1,006,972
Cash and cash equivalents beginning of period	14,902,076	17,814,292
Cash and cash equivalents end of period	$ 20,555,496	$ 18,821,264

XML

DESCRIPTION OF BUSINESS

6 Months Ended

Sep. 30, 2023

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS

NOTE 1. DESCRIPTION OF BUSINESS

Reservoir Media, Inc. (formerly known as Roth CH Acquisition II Co. (“ROCC”)), a Delaware corporation (the “Company”), is an independent music company based in New York City, New York and with offices in Los Angeles, Nashville, Toronto, London and Abu Dhabi.

Following a business combination between ROCC and Reservoir Holdings, Inc., a Delaware corporation (“RHI”), on July 28, 2021 (the “Business Combination”), the Company’s legal name became “Reservoir Media, Inc.” The common stock, $0.0001 par value per share, of the Company (the “Common Stock”) and warrants are traded on The Nasdaq Stock Market LLC (“NASDAQ”) under the ticker symbols “RSVR” and “RSVRW,” respectively.

The Company’s activities are organized into two operating segments: Music Publishing and Recorded Music. Operations of the Music Publishing segment involve the acquisition of interests in music catalogs from which royalties are earned as well as signing songwriters to exclusive agreements which give the Company an interest in the future delivery of songs. The publishing catalog includes ownership or control rights to more than 150,000 musical compositions that span across historic pieces, motion picture scores and current award-winning hits. Operations of the Recorded Music segment involve the acquisition of sound recording catalogs as well as the discovery and development of recording artists and the marketing, distribution, sale and licensing of the music catalog. The Recorded Music operations are primarily conducted through the Chrysalis Records platform and Tommy Boy Music and include the ownership of over 36,000 sound recordings.

XML

BASIS OF PRESENTATION

6 Months Ended

Sep. 30, 2023

BASIS OF PRESENTATION

BASIS OF PRESENTATION

NOTE 2. BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. All intercompany transactions and balances have been eliminated in these condensed consolidated financial statements. Certain information and note disclosures typically included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s audited financial statements as of and for the fiscal years ended March 31, 2023 and 2022.

The condensed consolidated balance sheet of the Company as of March 31, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by US GAAP on an annual reporting basis.

In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods. The results for the three and six months ended September 30, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending March 31, 2024 or any other period.

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. Significant estimates are used for, but not limited to, determining useful lives of intangible assets, intangible asset recoverability and impairment and accrued revenue. Actual results could differ from these estimates.

XML

RECENT ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Sep. 30, 2023

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Standards Recently Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses. Subsequent to ASU 2016-13, the FASB has issued several related ASUs amending the original ASU 2016-13. The updates are intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. For the Company, ASU 2016-13 was effective beginning April 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.

XML

REVENUE RECOGNITION

6 Months Ended

Sep. 30, 2023

REVENUE RECOGNITION

REVENUE RECOGNITION

NOTE 4. REVENUE RECOGNITION

For the Company’s operating 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 the Company is contractually due 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 $3,571,968 and $3,377,420 from performance obligations satisfied in previous periods for the six months ended September 30, 2023 and 2022, respectively. Revenue recognized from performance obligations satisfied in previous periods for the six months ended September 30, 2022 was impacted by an update to estimated Music Publishing royalties based on the Company’s estimate of effects arising from the July 2022 ruling by the U.S. Copyright Royalty Board (the “CRB”) to affirm increases to the statutory royalty rate structure for mechanical royalties in the U.S. for the period 2018 to 2022. For much of the period between 2018 and 2022, most digital service providers accounted and submitted payment to the Company using the applicable 2017 rate while the remand process took place.

Disaggregation of Revenue

The Company’s revenue consisted of the following categories during the three and six months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenue by Type
Digital	$	12,755,372	$	13,246,981	$	24,655,889	$	21,710,851
Performance		6,493,505		4,411,443		11,008,409		7,947,867
Synchronization		4,467,826		4,413,154		7,500,525		7,712,500
Mechanical		1,251,662		1,000,513		1,811,309		1,514,981
Other		939,697		991,290		1,723,245		1,623,889
Total Music Publishing		25,908,062		24,063,381		46,699,377		40,510,088
Digital		7,264,540		6,312,160		12,887,189		10,875,702
Physical		1,892,387		851,355		5,466,938		2,148,533
Neighboring rights		802,398		740,932		1,661,545		1,426,281
Synchronization		868,154		989,232		1,196,444		2,013,874
Total Recorded Music		10,827,479		8,893,679		21,212,116		16,464,390
Other revenue		1,661,759		308,651		2,322,393		570,003
Total revenue	$	38,397,300	$	33,265,711	$	70,233,886	$	57,544,481

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenue by Geographical Location
United States Music Publishing	$	14,371,352	$	14,916,155	$	27,372,346	$	24,759,449
United States Recorded Music		5,882,700		4,967,177		11,407,463		8,770,013
United States other revenue		1,661,759		308,651		2,322,393		570,003
Total United States		21,915,811		20,191,983		41,102,202		34,099,465
International Music Publishing		11,536,710		9,147,226		19,327,031		15,750,639
International Recorded Music		4,944,779		3,926,502		9,804,653		7,694,377
Total International		16,481,489		13,073,728		29,131,684		23,445,016
Total revenue	$	38,397,300	$	33,265,711	$	70,233,886	$	57,544,481

Only the United States represented 10% or more of the Company’s total revenues in the three and six months ended September 30, 2023 and 2022.

Deferred Revenue

The following table reflects the change in deferred revenue during the six months ended September 30, 2023 and 2022:

	September 30,
	2023		2022
Balance at beginning of period	$	2,151,889	$	1,103,664
Cash received during period		2,719,181		4,451,194
Revenue recognized during period		(2,321,643)		(1,930,247)
Balance at end of period	$	2,549,427	$	3,624,611

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ACQUISITIONS

6 Months Ended

Sep. 30, 2023

ACQUISITIONS

ACQUISITIONS

NOTE 5. ACQUISITIONS

In the ordinary course of business, the Company regularly acquires publishing and recorded music catalogs, which are typically accounted for as asset acquisitions. During the six months ended September 30, 2023 and 2022, the Company completed such acquisitions totaling $31,303,370 and $6,946,630, respectively, inclusive of deferred acquisition payments, none of which were individually significant.

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INTANGIBLE ASSETS

6 Months Ended

Sep. 30, 2023

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE 6. INTANGIBLE ASSETS

Intangible assets subject to amortization consist of the following as of September 30, 2023 and March 31, 2023:

	September 30, 2023		March 31, 2023
Intangible assets subject to amortization:
Publishing and recorded music catalogs	$	752,086,373	$	721,904,892
Artist management contracts		881,377		893,283
Gross intangible assets		752,967,750		722,798,175
Accumulated amortization		(117,370,679)		(105,393,434)
Intangible assets, net	$	635,597,071	$	617,404,741

Straight-line amortization expense totaled $6,154,509 and $5,341,069 in the three months ended September 30, 2023 and 2022, respectively. Straight-line amortization expense totaled $12,152,021 and $10,656,334 in the six months ended September 30, 2023 and 2022, respectively.

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ROYALTY ADVANCES

6 Months Ended

Sep. 30, 2023

ROYALTY ADVANCES

ROYALTY ADVANCES

NOTE 7. ROYALTY ADVANCES

The Company made royalty advances totaling $8,969,170 and $12,313,011 during the six months ended September 30, 2023 and 2022, respectively, recoupable from the writer’s or artist’s share of future royalties otherwise payable, in varying amounts. Advances expected to be recouped within the next twelve months are classified as current assets, with the remainder classified as noncurrent assets.

	Six Months Ended
	September 30,
	2023		2022
Balance at beginning of period	$	66,926,500	$	57,012,754
Additions		8,969,170		12,313,011
Recoupments		(6,571,563)		(6,856,146)
Balance at end of period	$	69,324,107	$	62,469,619

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SECURED LINE OF CREDIT

6 Months Ended

Sep. 30, 2023

SECURED LINE OF CREDIT

SECURED LINE OF CREDIT

NOTE 8. SECURED LINE OF CREDIT

Long-term debt consists of the following:

	September 30, 2023		March 31, 2023
Secured line of credit	$	337,828,410	$	317,828,409
Debt issuance costs, net		(5,694,199)		(6,336,828)
	$	332,134,211	$	311,491,581

Credit Facilities

On December 16, 2022, Reservoir Media Management, Inc. (“RMM”), a subsidiary of RHI, entered into an amendment (the “Second Amendment”) to the credit agreement (the “RMM Credit Agreement”) governing RMM’s secured revolving credit facility

(the “Senior Credit Facility”). The Second Amendment amended the RMM Credit Agreement to (i) increase RMM’s senior secured revolving credit facility from $350,000,000 to $450,000,000, (ii) increase the incremental borrowing available under the facility’s accordion feature (discussed below) from $50,000,000 to $150,000,000, (iii) extend the maturity date of the loans advanced under the RMM Credit Agreement from October 16, 2024 to December 16, 2027, (iv) modify the interest rate to be equal to either the sum of a base rate plus a margin of 1.00% or the sum of a SOFR rate plus a margin of 2.00%, in each case subject to a 0.25% increase based on a consolidated net senior debt to library value ratio, (v) remove the existing total leverage ratio financial covenant of no greater than 7.50:1.00 (net of up to $20,000,000 of certain cash balances) as of the end of each fiscal quarter, (vi) reduce the minimum required fixed charge coverage ratio financial covenant to 1.10:1.00 and (vii) modify the consolidated senior debt to library value ratio financial covenant to 0.450, subject to certain adjustments. In connection with the Second Amendment, RMM recorded a loss on early extinguishment of debt of approximately $914,000 that reflects the write-off of a portion of unamortized previous debt issuance costs and capitalized approximately $3,500,000 in new debt issuance costs.

RMM is required to pay an unused fee in respect of unused commitments under the Senior Credit Facility, if any, at a rate of 0.25% per annum. Substantially all tangible and intangible assets of the Company, RHI, RMM and the other subsidiary guarantors are pledged as collateral to secure the obligations of RMM under the RMM Credit Agreement.

The RMM Credit Agreement contains customary covenants limiting the ability of the Company, RHI, RMM and certain of its subsidiaries to, among other things, incur debt or liens, merge or consolidate with others, make investments, make cash dividends, redeem or repurchase capital stock, dispose of assets, enter into transactions with affiliates or enter into certain restrictive agreements. In addition, the Company, on a consolidated basis with its subsidiaries, must comply with financial covenants requiring the Company to maintain (i) a fixed charge coverage ratio of not less than 1.10:1.00 for each four fiscal quarter period, and (ii) a consolidated senior debt to library value ratio of 0.45:1.00, subject to certain adjustments. If RMM does not comply with the covenants in the RMM Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Senior Credit Facility.

The Senior Credit Facility also includes an “accordion feature” that permits RMM to seek additional commitments in an amount not to exceed $150,000,000. As of September 30, 2023, the Senior Credit Facility had a borrowing capacity of $450,000,000, with remaining borrowing availability of $112,171,590.

Interest Rate Swaps

At September 30, 2023, RMM had the following interest rate swaps outstanding, under which it pays a fixed rate and receives a floating interest payment from the counterparty based on SOFR with reference to notional amounts adjusted to match the amended scheduled principal repayments pursuant to the Senior Credit Facility:

	Notional
	Amount at		Pay Fixed
Effective Date	September 30, 2023		Rate		Maturity
March 10, 2022	$	8,000,000	1.5330	%	September 2024
March 10, 2022	$	87,680,787	1.4220	%	September 2024
December 31, 2021	$	54,319,213	0.9720	%	September 2024
September 30, 2024	$	100,000,000	2.9460	%	December 2027

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INCOME TAXES

6 Months Ended

Sep. 30, 2023

INCOME TAXES

INCOME TAXES

NOTE 9. INCOME TAXES

Income tax expense for the three months ended September 30, 2023 and 2022 was $291,638 (29.9% effective tax rate) and $1,682,369 (27.3% effective tax rate), respectively. Income tax expense for the six months ended September 30, 2023 and 2022 was $353,986 (29.5% effective tax rate) and $1,687,707 (27.3% effective tax rate), respectively. The effective tax rates during these periods reflect the amount and mix of income from multiple tax jurisdictions.

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SUPPLEMENTARY CASH FLOW INFORMATION

6 Months Ended

Sep. 30, 2023

SUPPLEMENTARY CASH FLOW INFORMATION

SUPPLEMENTARY CASH FLOW INFORMATION

NOTE 10. SUPPLEMENTARY CASH FLOW INFORMATION

Interest paid and income taxes paid for the six months ended September 30, 2023 and 2022 were comprised of the following:

	2023		2022
Interest paid	$	9,136,713	$	5,319,954
Income taxes paid	$	187,940	$	30,000

Non-cash investing and financing activities for the six months ended September 30, 2023 and 2022 were comprised of the following:

	2023		2022
Acquired intangible assets included in other liabilities	$	1,823,691	$	1,051,692
Reclassification of liability-classified awards to equity-classified awards	$	744,167	$	1,106,429

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WARRANTS

6 Months Ended

Sep. 30, 2023

WARRANTS

WARRANTS

NOTE 11. WARRANTS

As of September 30, 2023, the Company’s outstanding warrants included 5,750,000 publicly-traded warrants (the “Public Warrants”), which were issued during ROCC’s initial public offering on December 15, 2020, and 137,500 warrants sold in a private placement to ROCC’s sponsor (the “Private Warrants” and together with the Public Warrants, the “Warrants”), which were assumed by the Company in connection with the Business Combination and exchanged into warrants for shares of Common Stock. Each whole Warrant entitles the registered holder to purchase one whole share of Common Stock at a price of $11.50 per share, provided that the Company has an effective registration statement under the Securities Act covering the shares of Common Stock issuable upon exercise of the Warrants and a current prospectus relating to them is available and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder.

The Warrants will expire on July 28, 2026, which is five years after the completion of the Business Combination, or earlier upon redemption or liquidation. The Company may redeem the outstanding Public Warrants in whole, but not in part, at a price of $0.01 per warrant upon a minimum of 30 days’ prior written notice of redemption, if and only if the last sale price of Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the registered holders.

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SHARE-BASED COMPENSATION

6 Months Ended

Sep. 30, 2023

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

NOTE 12. SHARE-BASED COMPENSATION

Share-based compensation expense totaled $812,860 ($626,014, net of taxes) and $851,987 ($656,692, net of taxes) during the three months ended September 30, 2023 and 2022, respectively. Share-based compensation expense totaled $1,727,286 ($1,330,249, net of taxes) and $1,617,490 ($1,246,724, net of taxes) during the six months ended September 30, 2023 and 2022, respectively. Share-based compensation expense is classified as “Administration expenses” in the accompanying condensed consolidated statements of income.

During the three and six months ended September 30, 2023 and 2022, 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 RSU’s the awards became equity-classified as they no longer met the criteria to be liability-classified and as a result liabilities of $744,167 and $1,106,429 were reclassified from accounts payable and accrued liabilities to additional paid-in capital during the six months ended September 30, 2023 and 2022, respectively.

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EARNINGS PER SHARE

6 Months Ended

Sep. 30, 2023

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 13. EARNINGS PER SHARE

The following table summarizes the basic and diluted earnings per common share calculation for the three and six months ended September 30, 2023 and 2022:

		Three Months Ended			Six Months Ended
		September 30,			September 30,
		2023	2022		2023		2022
Basic earnings per common share
Net income attributable to Reservoir Media, Inc.	$	535,390	$	4,536,933	$	812,723	$	4,612,972
Weighted average common shares outstanding - basic		64,783,974		64,349,375		64,684,082		64,286,797
Earnings per common share - basic	$	0.01	$	0.07	$	0.01	$	0.07
Diluted earnings per common share
Net income attributable to Reservoir Media, Inc.	$	535,390	$	4,536,933	$	812,723	$	4,612,972
Weighted average common shares outstanding - basic		64,783,974		64,349,375		64,684,082		64,286,797
Weighted average effect of potentially dilutive securities:
Effect of dilutive stock options and RSUs		301,680		440,009		347,406		500,150
Weighted average common shares outstanding - diluted		65,085,654		64,789,384		65,031,488		64,786,947
Earnings per common share - diluted	$	0.01	$	0.07	$	0.01	$	0.07

Because of their anti-dilutive effect, 5,960,637 shares of Common Stock equivalents, comprised of 73,137 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the three and six months ended September 30, 2023. Because of their anti-dilutive effect, 5,957,444 shares of Common Stock equivalents, comprised of 69,944 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the three months ended September 30, 2022. Because of their anti-dilutive effect, 5,952,683 shares of Common Stock equivalents, comprised of 65,183 RSUs and 5,887,500 warrants have been excluded from the diluted earnings per share calculation for the six months ended September 30, 2022.

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FINANCIAL INSTRUMENTS

6 Months Ended

Sep. 30, 2023

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

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 Company’s 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 was a $9,230,362 asset as of September 30, 2023 and a $6,756,884 asset as of March 31, 2023. 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 six months ended September 30, 2023 of $628,091 and $2,473,478, respectively, was recorded as a Gain on fair value of swaps. The change in the unrealized fair value of the swaps during

the three and six months ended September 30, 2022 of $2,932,443 and $4,502,780, respectively, was recorded as a Gain on fair value of swaps.

(c) Foreign Exchange Risk

The Company is exposed to foreign exchange risk in fluctuations of currency rates on its revenue from royalties, writers’ fees and its subsidiaries’ operations.

(d) Financial Instruments

Financial instruments not described elsewhere include cash, accounts receivable, accounts payable, accrued liabilities and the Company’s secured line of credit. The carrying values of these instruments as of September 30, 2023 do not differ materially from their respective fair values due to the immediate or short-term duration of these items or their bearing market-related rates of interest.

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CONTINGENCIES AND COMMITMENTS

6 Months Ended

Sep. 30, 2023

CONTINGENCIES AND COMMITMENTS

CONTINGENCIES AND COMMITMENTS

NOTE 15. CONTINGENCIES AND COMMITMENTS

(a) Litigation

The Company is subject to claims and contingencies in the normal course of business. To the extent the Company cannot predict the 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.

The Company has been involved in a royalty dispute, which commenced in 2017 (the “Royalty Dispute”). Under the terms of the Company’s royalty contract, the Company is indemnified for legal expenses and attorneys’ fees incurred by the Company in connection with the Royalty Dispute, including, without limitation, the right to withhold royalties or offset all such legal expenses and attorneys’ fees against royalties otherwise owed under the contract. The Company recorded legal expenses and attorneys’ fees incurred as recoupable advances against the royalty account under such contract beginning in 2017. In September 2023, the Company engaged in mediation sessions in an effort to reach a settlement of the Royalty Dispute. Following such mediation and associated settlement negotiations, the Company agreed to pay previously accrued but unpaid royalties plus interest and forego its right to recoup its historical legal expenses and attorneys’ fees in order to resolve the Royalty Dispute. Consequently, during the three and six months ended September 30, 2023, the Company recorded approximately $2,700,000 of Administration expenses to write-off recoupable legal expenses and attorneys’ fees and recorded $620,000 of interest expense based on amounts it paid in October 2023, pursuant to a final settlement agreement reached on October 3, 2023 to resolve the Royalty Dispute.

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SEGMENT REPORTING

6 Months Ended

Sep. 30, 2023

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 16. SEGMENT REPORTING

The Company’s business is organized in two reportable segments: Music Publishing and Recorded Music. The Company identified its Chief Executive Officer as its Chief Operating Decision Maker (“CODM”). The Company’s CODM evaluates financial performance of its segments based on several factors, of which the primary financial measure is operating income before depreciation and amortization (“OIBDA”). The accounting policies of the Company’s business segments are consistent with the Company’s policies for the condensed consolidated financial statements. The Company does not have sales between segments.

The following tables present total revenue and reconciliation of OIBDA to operating income by segment for the three and six months ended September 30, 2023 and 2022:

	Three Months Ended September 30, 2023
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	25,908,062	$	10,827,479	$	1,661,759	$	38,397,300
Reconciliation of OIBDA to operating income:
Operating income		1,410,522		4,129,816		604,752		6,145,090
Amortization and depreciation		4,791,759		1,398,966		23,815		6,214,540
OIBDA	$	6,202,281	$	5,528,782	$	628,567	$	12,359,630

	Three Months Ended September 30, 2022
	Music		Recorded
	Publishing		Music			Other	Consolidated
Total revenue	$	24,063,381	$	8,893,679	$	308,651	$	33,265,711
Reconciliation of OIBDA to operating income:
Operating income		3,074,439		3,476,367		16,649		6,567,455
Amortization and depreciation		4,010,123		1,352,977		21,241		5,384,341
OIBDA	$	7,084,562	$	4,829,344	$	37,890	$	11,951,796

	Six Months Ended September 30, 2023
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	46,699,377	$	21,212,116	$	2,322,393	$	70,233,886
Reconciliation of OIBDA to operating income:
Operating income		2,806,994		5,893,612		589,405		9,290,011
Amortization and depreciation		9,094,603		3,128,118		47,387		12,270,108
OIBDA	$	11,901,597	$	9,021,730	$	636,792	$	21,560,119

	Six Months Ended September 30, 2022
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	40,510,088	$	16,464,390	$	570,003	$	57,544,481
Reconciliation of OIBDA to operating income:
Operating income		2,813,131		5,057,677		17,173		7,887,981
Amortization and depreciation		7,964,493		2,737,458		43,894		10,745,844
OIBDA	$	10,777,624	$	7,795,135	$	61,067	$	18,633,825

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RECENT ACCOUNTING PRONOUNCEMENTS (Policies)

6 Months Ended

Sep. 30, 2023

RECENT ACCOUNTING PRONOUNCEMENTS

Recent Accounting Pronouncements

Accounting Standards Recently Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses. Subsequent to ASU 2016-13, the FASB has issued several related ASUs amending the original ASU 2016-13. The updates are intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. For the Company, ASU 2016-13 was effective beginning April 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.

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REVENUE RECOGNITION (Tables)

6 Months Ended

Sep. 30, 2023

REVENUE RECOGNITION

Schedule of revenue

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenue by Type
Digital	$	12,755,372	$	13,246,981	$	24,655,889	$	21,710,851
Performance		6,493,505		4,411,443		11,008,409		7,947,867
Synchronization		4,467,826		4,413,154		7,500,525		7,712,500
Mechanical		1,251,662		1,000,513		1,811,309		1,514,981
Other		939,697		991,290		1,723,245		1,623,889
Total Music Publishing		25,908,062		24,063,381		46,699,377		40,510,088
Digital		7,264,540		6,312,160		12,887,189		10,875,702
Physical		1,892,387		851,355		5,466,938		2,148,533
Neighboring rights		802,398		740,932		1,661,545		1,426,281
Synchronization		868,154		989,232		1,196,444		2,013,874
Total Recorded Music		10,827,479		8,893,679		21,212,116		16,464,390
Other revenue		1,661,759		308,651		2,322,393		570,003
Total revenue	$	38,397,300	$	33,265,711	$	70,233,886	$	57,544,481

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenue by Geographical Location
United States Music Publishing	$	14,371,352	$	14,916,155	$	27,372,346	$	24,759,449
United States Recorded Music		5,882,700		4,967,177		11,407,463		8,770,013
United States other revenue		1,661,759		308,651		2,322,393		570,003
Total United States		21,915,811		20,191,983		41,102,202		34,099,465
International Music Publishing		11,536,710		9,147,226		19,327,031		15,750,639
International Recorded Music		4,944,779		3,926,502		9,804,653		7,694,377
Total International		16,481,489		13,073,728		29,131,684		23,445,016
Total revenue	$	38,397,300	$	33,265,711	$	70,233,886	$	57,544,481

Schedule of change in deferred revenue

	September 30,
	2023		2022
Balance at beginning of period	$	2,151,889	$	1,103,664
Cash received during period		2,719,181		4,451,194
Revenue recognized during period		(2,321,643)		(1,930,247)
Balance at end of period	$	2,549,427	$	3,624,611

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INTANGIBLE ASSETS (Tables)

6 Months Ended

Sep. 30, 2023

INTANGIBLE ASSETS

Schedule of intangible assets subject to amortization

	September 30, 2023		March 31, 2023
Intangible assets subject to amortization:
Publishing and recorded music catalogs	$	752,086,373	$	721,904,892
Artist management contracts		881,377		893,283
Gross intangible assets		752,967,750		722,798,175
Accumulated amortization		(117,370,679)		(105,393,434)
Intangible assets, net	$	635,597,071	$	617,404,741

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ROYALTY ADVANCES (Tables)

6 Months Ended

Sep. 30, 2023

ROYALTY ADVANCES

Schedule of royalty advances

	Six Months Ended
	September 30,
	2023		2022
Balance at beginning of period	$	66,926,500	$	57,012,754
Additions		8,969,170		12,313,011
Recoupments		(6,571,563)		(6,856,146)
Balance at end of period	$	69,324,107	$	62,469,619

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SECURED LINE OF CREDIT (Tables)

6 Months Ended

Sep. 30, 2023

SECURED LINE OF CREDIT

Schedule of long-term debt

	September 30, 2023		March 31, 2023
Secured line of credit	$	337,828,410	$	317,828,409
Debt issuance costs, net		(5,694,199)		(6,336,828)
	$	332,134,211	$	311,491,581

Schedule of interest rate swaps

	Notional
	Amount at		Pay Fixed
Effective Date	September 30, 2023		Rate		Maturity
March 10, 2022	$	8,000,000	1.5330	%	September 2024
March 10, 2022	$	87,680,787	1.4220	%	September 2024
December 31, 2021	$	54,319,213	0.9720	%	September 2024
September 30, 2024	$	100,000,000	2.9460	%	December 2027

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SUPPLEMENTARY CASH FLOW INFORMATION (Tables)

6 Months Ended

Sep. 30, 2023

SUPPLEMENTARY CASH FLOW INFORMATION

Schedule of interest paid and income taxes paid

	2023		2022
Interest paid	$	9,136,713	$	5,319,954
Income taxes paid	$	187,940	$	30,000

Schedule of non-cash investing and financing activities

	2023		2022
Acquired intangible assets included in other liabilities	$	1,823,691	$	1,051,692
Reclassification of liability-classified awards to equity-classified awards	$	744,167	$	1,106,429

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EARNINGS PER SHARE (Tables)

6 Months Ended

Sep. 30, 2023

EARNINGS PER SHARE

Summary of basic and diluted earnings per common share calculation

		Three Months Ended			Six Months Ended
		September 30,			September 30,
		2023	2022		2023		2022
Basic earnings per common share
Net income attributable to Reservoir Media, Inc.	$	535,390	$	4,536,933	$	812,723	$	4,612,972
Weighted average common shares outstanding - basic		64,783,974		64,349,375		64,684,082		64,286,797
Earnings per common share - basic	$	0.01	$	0.07	$	0.01	$	0.07
Diluted earnings per common share
Net income attributable to Reservoir Media, Inc.	$	535,390	$	4,536,933	$	812,723	$	4,612,972
Weighted average common shares outstanding - basic		64,783,974		64,349,375		64,684,082		64,286,797
Weighted average effect of potentially dilutive securities:
Effect of dilutive stock options and RSUs		301,680		440,009		347,406		500,150
Weighted average common shares outstanding - diluted		65,085,654		64,789,384		65,031,488		64,786,947
Earnings per common share - diluted	$	0.01	$	0.07	$	0.01	$	0.07

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SEGMENT REPORTING (Tables)

6 Months Ended

Sep. 30, 2023

SEGMENT REPORTING

Schedule of total revenue and reconciliation of OIBDA to operating income by segment

	Three Months Ended September 30, 2023
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	25,908,062	$	10,827,479	$	1,661,759	$	38,397,300
Reconciliation of OIBDA to operating income:
Operating income		1,410,522		4,129,816		604,752		6,145,090
Amortization and depreciation		4,791,759		1,398,966		23,815		6,214,540
OIBDA	$	6,202,281	$	5,528,782	$	628,567	$	12,359,630

	Three Months Ended September 30, 2022
	Music		Recorded
	Publishing		Music			Other	Consolidated
Total revenue	$	24,063,381	$	8,893,679	$	308,651	$	33,265,711
Reconciliation of OIBDA to operating income:
Operating income		3,074,439		3,476,367		16,649		6,567,455
Amortization and depreciation		4,010,123		1,352,977		21,241		5,384,341
OIBDA	$	7,084,562	$	4,829,344	$	37,890	$	11,951,796

	Six Months Ended September 30, 2023
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	46,699,377	$	21,212,116	$	2,322,393	$	70,233,886
Reconciliation of OIBDA to operating income:
Operating income		2,806,994		5,893,612		589,405		9,290,011
Amortization and depreciation		9,094,603		3,128,118		47,387		12,270,108
OIBDA	$	11,901,597	$	9,021,730	$	636,792	$	21,560,119

	Six Months Ended September 30, 2022
	Music		Recorded
	Publishing		Music		Other		Consolidated
Total revenue	$	40,510,088	$	16,464,390	$	570,003	$	57,544,481
Reconciliation of OIBDA to operating income:
Operating income		2,813,131		5,057,677		17,173		7,887,981
Amortization and depreciation		7,964,493		2,737,458		43,894		10,745,844
OIBDA	$	10,777,624	$	7,795,135	$	61,067	$	18,633,825

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DESCRIPTION OF BUSINESS (Details)	6 Months Ended
	Sep. 30, 2023 segment item $ / shares	Mar. 31, 2023 $ / shares	Jul. 28, 2021 $ / shares
DESCRIPTION OF BUSINESS
Common stock, par value (per share) | $ / shares	$ 0.0001	$ 0.0001	$ 0.0001
Number of operating segments | segment	2
Music Publishing
DESCRIPTION OF BUSINESS
Minimum ownership or control rights	150,000
Recorded Music
DESCRIPTION OF BUSINESS
Minimum ownership or control rights	36,000

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REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue recognized from performance obligations satisfied in previous period			$ 3,571,968	$ 3,377,420
Revenues	$ 38,397,300	$ 33,265,711	70,233,886	57,544,481
United States
Revenues	$ 21,915,811	$ 20,191,983	$ 41,102,202	$ 34,099,465
Percentage of revenue more than Company's total revenue	10.00%	10.00%	10.00%	10.00%
International
Revenues	$ 16,481,489	$ 13,073,728	$ 29,131,684	$ 23,445,016
Music Publishing
Revenues	25,908,062	24,063,381	46,699,377	40,510,088
Music Publishing | United States
Revenues	14,371,352	14,916,155	27,372,346	24,759,449
Music Publishing | International
Revenues	11,536,710	9,147,226	19,327,031	15,750,639
Recorded Music
Revenues	10,827,479	8,893,679	21,212,116	16,464,390
Recorded Music | United States
Revenues	5,882,700	4,967,177	11,407,463	8,770,013
Recorded Music | International
Revenues	4,944,779	3,926,502	9,804,653	7,694,377
Other revenue
Revenues	1,661,759	308,651	2,322,393	570,003
Other revenue | United States
Revenues	1,661,759	308,651	2,322,393	570,003
Digital | Music Publishing
Revenues	12,755,372	13,246,981	24,655,889	21,710,851
Digital | Recorded Music
Revenues	7,264,540	6,312,160	12,887,189	10,875,702
Performance | Music Publishing
Revenues	6,493,505	4,411,443	11,008,409	7,947,867
Synchronization | Music Publishing
Revenues	4,467,826	4,413,154	7,500,525	7,712,500
Synchronization | Recorded Music
Revenues	868,154	989,232	1,196,444	2,013,874
Mechanical | Music Publishing
Revenues	1,251,662	1,000,513	1,811,309	1,514,981
Physical | Recorded Music
Revenues	1,892,387	851,355	5,466,938	2,148,533
Neighboring rights | Recorded Music
Revenues	802,398	740,932	1,661,545	1,426,281
Other | Music Publishing
Revenues	$ 939,697	$ 991,290	$ 1,723,245	$ 1,623,889

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REVENUE RECOGNITION - Change in Deferred Revenue (Details) - USD ($)	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
REVENUE RECOGNITION
Balance at beginning of period	$ 2,151,889	$ 1,103,664
Cash received during period	2,719,181	4,451,194
Revenue recognized during period	(2,321,643)	(1,930,247)
Balance at end of period	$ 2,549,427	$ 3,624,611

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ACQUISITIONS (Details) - USD ($)	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Publishing and recorded music catalogs
ACQUISITIONS
Total consideration transferred	$ 31,303,370	$ 6,946,630

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INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Intangible assets subject to amortization:
Gross intangible assets	$ 752,967,750		$ 752,967,750		$ 722,798,175
Accumulated amortization	(117,370,679)		(117,370,679)		(105,393,434)
Intangible assets, net	635,597,071		635,597,071		617,404,741
Amortization expense	6,154,509	$ 5,341,069	12,152,021	$ 10,656,334
Publishing and recorded music catalogs
Intangible assets subject to amortization:
Gross intangible assets	752,086,373		752,086,373		721,904,892
Artist management contracts
Intangible assets subject to amortization:
Gross intangible assets	$ 881,377		$ 881,377		$ 893,283

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ROYALTY ADVANCES (Details) - USD ($)	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
ROYALTY ADVANCES
Balance at beginning of period	$ 66,926,500	$ 57,012,754
Additions	8,969,170	12,313,011
Recoupments	(6,571,563)	(6,856,146)
Balance at end of period	$ 69,324,107	$ 62,469,619

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SECURED LINE OF CREDIT - Schedule of long-term debt (Details) - USD ($)	Sep. 30, 2023	Mar. 31, 2023
Long-term Debt, by Current and Noncurrent
Debt issuance costs, net	$ (5,694,199)	$ (6,336,828)
Long-term portion	332,134,211	311,491,581
Secured loan
Long-term Debt, by Current and Noncurrent
Secured line of credit	$ 337,828,410	$ 317,828,409

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SECURED LINE OF CREDIT - Credit Facilities (Details)		6 Months Ended
	Dec. 16, 2022 USD ($)	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)
SECURED LINE OF CREDIT
Capitalized debt issuance costs		$ 5,694,199	$ 6,336,828
New Senior Credit Facility
SECURED LINE OF CREDIT
Unused fee (in percent)		0.25%
Fixed charge coverage ratio		1.10
Consolidated senior debt to library value ratio		0.45
Additional commitments		$ 150,000,000
Borrowing capacity		450,000,000
Remaining borrowing availability		$ 112,171,590
RMM credit agreement
SECURED LINE OF CREDIT
Margin (in percent)	0.25%
Total leverage ratio	7.50
Total Leverage of cash balance	$ 20,000,000
Fixed charge coverage ratio	1.10
Consolidated senior debt to library value ratio	0.450
Loss on early extinguishment of debt	$ 914,000
Capitalized debt issuance costs	$ 3,500,000
Base rate | RMM credit agreement
SECURED LINE OF CREDIT
Margin (in percent)	1.00%
SOFR | RMM credit agreement
SECURED LINE OF CREDIT
Margin (in percent)	2.00%
Maximum | RMM credit agreement
SECURED LINE OF CREDIT
Aggregate amount	$ 450,000,000
Incremental borrowing available under the facility	150,000,000
Minimum | RMM credit agreement
SECURED LINE OF CREDIT
Aggregate amount	350,000,000
Incremental borrowing available under the facility	$ 50,000,000

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SECURED LINE OF CREDIT - Interest Rate Swaps (Details) - Senior Credit Facility	Sep. 30, 2023 USD ($)
Interest rate swaps
SECURED LINE OF CREDIT
Notional Amount	$ 8,000,000
Pay Fixed Rate (in percent)	1.533%
Interest rate swap one
SECURED LINE OF CREDIT
Notional Amount	$ 87,680,787
Pay Fixed Rate (in percent)	1.422%
Interest rate swap two
SECURED LINE OF CREDIT
Notional Amount	$ 54,319,213
Pay Fixed Rate (in percent)	0.972%
Interest rate swap three
SECURED LINE OF CREDIT
Notional Amount	$ 100,000,000
Pay Fixed Rate (in percent)	2.946%

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INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
INCOME TAXES
Income tax expense	$ 291,638	$ 1,682,369	$ 353,986	$ 1,687,707
Effective tax rate (in percent)	29.90%	27.30%	29.50%	27.30%

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SUPPLEMENTARY CASH FLOW INFORMATION (Details) - USD ($)	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
SUPPLEMENTARY CASH FLOW INFORMATION
Interest paid	$ 9,136,713	$ 5,319,954
Income taxes paid	187,940	30,000
Acquired intangible assets included in other liabilities	1,823,691	1,051,692
Reclassification of liability-classified awards to equity-classified awards	$ 744,167	$ 1,106,429

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WARRANTS (Details) - Warrants		6 Months Ended
	Dec. 15, 2020 shares	Sep. 30, 2023 D $ / shares shares
SHAREHOLDERS' EQUITY
Number of warrants outstanding | shares		5,750,000
Number of warrants sold | shares	137,500
Number of shares issuable per warrant | shares		1
Exercise price of warrants | $ / shares		$ 11.50
Warrants expiration term (in years)		5 years
Redemption price per public warrant (in dollars per share) | $ / shares		$ 0.01
Minimum threshold written notice period for redemption of public warrants		30 days
Stock price trigger for redemption of public warrants (in dollars per share) | $ / shares		$ 18.00
Threshold trading days for redemption of public warrants		20 days
Threshold consecutive trading days for redemption of public warrants		30 days
Threshold number of business days before sending notice of redemption to warrant holders | D		3

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SHARE-BASED COMPENSATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
SHARE-BASED COMPENSATION
Share-based compensation expense	$ 812,860	$ 851,987	$ 1,727,286	$ 1,617,490
Share-based compensation expense net of taxes	626,014	656,692	1,330,249	1,246,724
Restricted Stock Units (RSUs) | Additional Paid-in Capital
SHARE-BASED COMPENSATION
Accounts payable to accrued liabilities to additional paid-in capital	$ 744,167	$ 1,106,429	$ 744,167	$ 1,106,429

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EARNINGS PER SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Basic earnings per common share
Net income attributable to Reservoir Media, Inc.	$ 535,390	$ 4,536,933	$ 812,723	$ 4,612,972
Weighted average common shares outstanding - basic	64,783,974	64,349,375	64,684,082	64,286,797
Earnings per common share - basic	$ 0.01	$ 0.07	$ 0.01	$ 0.07
Diluted earnings per common share
Net income attributable to Reservoir Media, Inc.	$ 535,390	$ 4,536,933	$ 812,723	$ 4,612,972
Weighted average common shares outstanding - basic	64,783,974	64,349,375	64,684,082	64,286,797
Weighted average effect of potentially dilutive securities:
Effect of dilutive stock options and RSUs	301,680	440,009	347,406	500,150
Weighted average common shares outstanding - diluted	65,085,654	64,789,384	65,031,488	64,786,947
Earnings per common share - diluted	$ 0.01	$ 0.07	$ 0.01	$ 0.07

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EARNINGS PER SHARE - Additional information (Details) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
EARNINGS PER SHARE
Anti-dilutive effect of common shares	5,960,637	5,957,444	5,960,637	5,952,683
RSU's
EARNINGS PER SHARE
Anti-dilutive effect of common shares	73,137	69,944	73,137	65,183
Warrants
EARNINGS PER SHARE
Anti-dilutive effect of common shares	5,887,500	5,887,500	5,887,500	5,887,500

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FINANCIAL INSTRUMENTS (Details) - Level 2 - Interest rate swaps - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
FINANCIAL INSTRUMENTS
Fair value of the outstanding interest rate swaps	$ 9,230,362		$ 9,230,362		$ 6,756,884
Gain on changes in fair value of derivative instruments	$ 628,091	$ 2,932,443	$ 2,473,478	$ 4,502,780

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CONTINGENCIES AND COMMITMENTS (Details)	3 Months Ended	6 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
CONTINGENCIES AND COMMITMENTS
Provision for any contingent liabilities	$ 0	$ 0
Administration expenses to write-off	2,700,000	2,700,000
Interest expense	$ 620,000	$ 620,000

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SEGMENT REPORTING (Details)	6 Months Ended
	Sep. 30, 2023 segment
SEGMENT REPORTING
Number of reportable segments	2

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SEGMENT REPORTING - Total revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
SEGMENT REPORTING
Total revenue	$ 38,397,300	$ 33,265,711	$ 70,233,886	$ 57,544,481
Reconciliation of OIBDA to operating income (loss):
Operating income (loss)	6,145,090	6,567,455	9,290,011	7,887,981
Amortization and depreciation	6,214,540	5,384,341	12,270,108	10,745,844
OIBDA	12,359,630	11,951,796	21,560,119	18,633,825
Music Publishing
SEGMENT REPORTING
Total revenue	25,908,062	24,063,381	46,699,377	40,510,088
Reconciliation of OIBDA to operating income (loss):
Operating income (loss)	1,410,522	3,074,439	2,806,994	2,813,131
Amortization and depreciation	4,791,759	4,010,123	9,094,603	7,964,493
OIBDA	6,202,281	7,084,562	11,901,597	10,777,624
Recorded Music
SEGMENT REPORTING
Total revenue	10,827,479	8,893,679	21,212,116	16,464,390
Reconciliation of OIBDA to operating income (loss):
Operating income (loss)	4,129,816	3,476,367	5,893,612	5,057,677
Amortization and depreciation	1,398,966	1,352,977	3,128,118	2,737,458
OIBDA	5,528,782	4,829,344	9,021,730	7,795,135
Other
SEGMENT REPORTING
Total revenue	1,661,759	308,651	2,322,393	570,003
Reconciliation of OIBDA to operating income (loss):
Operating income (loss)	604,752	16,649	589,405	17,173
Amortization and depreciation	23,815	21,241	47,387	43,894
OIBDA	$ 628,567	$ 37,890	$ 636,792	$ 61,067

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Pay vs Performance Disclosure - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 535,390	$ 4,536,933	$ 812,723	$ 4,612,972

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Insider Trading Arrangements	6 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false