NOTE 17. SEGMENT REPORTING

The Company’s business is organized in three operating segments, one of which does not meet the quantitative thresholds for determining reportable segments and two reportable segments, consisting of Music Publishing and Recorded Music. The Company identified its Chief Executive Officer as its 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 CODM regularly reviews trends in OIBDA and compares OIBDA results to budgets to evaluate the profitability of the segments. During the annual budget process, the CODM also considers OIBDA to assist in the allocation of resources to the segments.

The accounting policies of the Company’s operating and reportable segments are consistent with the Company’s policies for the consolidated financial statements. The Company does not have sales between segments.

The following tables present total revenue by segment, significant segment expenses, which are expenses that are included in OIBDA, significant to the segment considering qualitative and quantitative factors and regularly provided or easily computed from

information regularly provided to the CODM, and reconciliation of OIBDA to income before income taxes for the fiscal years ended March 31, 2025 and 2024:

    

Fiscal Year Ended March 31, 2025

Music

Recorded

    

Publishing

    

Music

    

Other

    

Consolidated

Total revenue

$

107,412,230

$

44,250,181

$

7,043,325

$

158,705,736

Significant segment expenses:

Cost of revenue

45,161,223

12,268,782

57,430,005

Administration expenses

24,906,776

9,231,858

5,776,830

39,915,464

OIBDA

37,344,231

22,749,541

1,266,495

61,360,267

Amortization and depreciation

18,690,668

7,512,371

96,194

26,299,233

Operating income

 

18,653,563

 

15,237,170

 

1,170,301

 

35,061,034

Interest expense

(21,883,321)

Gain on foreign exchange

578,251

Loss on fair value of swaps

(4,213,819)

Other income (expense), net

329,976

Income before income taxes

$

9,872,121

    

Fiscal Year Ended March 31, 2024

Music

Recorded

    

Publishing

    

Music

    

Other

    

Consolidated

Total revenue

$

96,193,309

$

42,366,504

$

6,295,877

$

144,855,690

Significant segment expenses:

Cost of revenue

41,867,372

13,610,914

55,478,286

Administration expenses

25,441,297

9,615,354

4,759,241

39,815,892

OIBDA

28,884,640

19,140,236

1,536,636

49,561,512

Amortization and depreciation

18,966,453

5,924,558

94,677

24,985,688

Operating income

9,918,187

13,215,678

1,441,959

24,575,824

Interest expense

(21,087,713)

Loss on foreign exchange

(101,834)

Loss on fair value of swaps

(1,124,770)

Other income (expense), net

(1,089,442)

Income before income taxes

$

1,172,065

The Company’s CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to the Company’s CODM nor used to allocate resources or assess performance of the segments, and therefore, total segment assets have not been disclosed.

Total long-lived assets by country are as follows as of March 31, 2025 and 2024:

2025

2024

United States

$

273,366

$

339,041

United Kingdom

 

133,418

 

212,369

During the fiscal years ended March 31, 2025 and 2024, a single external customer accounted for 11% of total revenues and is included in both the Music Publishing and Recorded Music segments. No other customer accounted for more than 10% of revenue.

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Historical Timeline

Fiscal YearFiled
2025May 28, 2025Showing above
2024May 30, 2024
2023May 31, 2023
2022Jun 21, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.