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| | | | | 154 | | | |
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| | | | | 204 | | | |
| | | | | 204 | | | |
| | | | | 205 | | | |
| | | | | F-1 | | | |
| Annex A — Agreement and Plan of Merger, dated as of April 14, 2021 | | | | | | | |
| Annex B — Second Amended and Restated Certificate of Incorporation of the Combined Company | | | | | | | |
| Annex C — Amended and Restated Bylaws of the Combined Company | | | | | | | |
| Annex D — Reservoir Media, Inc. 2021 Omnibus Incentive Plan | | | | | | | |
| | |
Three Months
Ended March 31, 2021 |
| |
Three Months
Ended March 31, 2020 |
| ||||||
Income Statement Data: | | | | ||||||||||
Formation and operational costs
|
| | | $ | 204,239 | | | | | $ | 85 | | |
Loss from operations
|
| | | | (204,239) | | | | | | (85) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in the Trust Account
|
| | | | 6,208 | | | | | | — | | |
Change in fair value of warrant liabilities
|
| | | | (49,500) | | | | | | — | | |
Other expense, net
|
| | | | (43,292) | | | | | | — | | |
Loss before income taxes
|
| | | | (247,531) | | | | | | (85) | | |
Net loss
|
| | | | (247,531) | | | | | | (85) | | |
Basic and diluted weighted average shares outstanding, ROCC Common Stock
subject to possible redemption |
| | | | 11,088,616 | | | | | | — | | |
Basic and diluted net loss per share, ROCC Common Stock subject to possible
redemption |
| | | $ | 0.00 | | | | | $ | 0.00 | | |
| | |
As of
March 31, 2021 |
| |
As of
December 31, 2020 |
| ||||||
Balance Sheet Data: | | | | ||||||||||
Trust Account
|
| | | $ | 115,012,821 | | | | | $ | 115,006,613 | | |
Total assets
|
| | | | 115,942,416 | | | | | | 116,099,067 | | |
Total liabilities
|
| | | | 303,784 | | | | | | 212,904 | | |
ROCC Common Stock subject to possible redemption
|
| | | | 110,638,630 | | | | | | 110,886,160 | | |
Stockholders’ equity
|
| | | | 5,000,002 | | | | | | 5,000,003 | | |
| | |
Year Ended
March 31, |
| |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Income Statement Data: | | | | | | | | | |||||
Revenues
|
| | | $ | 81,778 | | | | | $ | 63,239 | | |
Total costs and expenses
|
| | | | 62,107 | | | | | | 47,761 | | |
Operating income
|
| | | | 19,671 | | | | | | 15,477 | | |
Income before income taxes
|
| | | | 12,790 | | | | | | 14,210 | | |
Income tax expense
|
| | | | 2,454 | | | | | | 4,199 | | |
Net income
|
| | | | 10,336 | | | | | | 10,011 | | |
Net (income) / loss attributable to noncontrolling
interests |
| | | | (47) | | | | | | 47 | | |
Net income attributable to Reservoir
|
| | | | 10,289 | | | | | | 10,058 | | |
Total comprehensive income
|
| | | | 16,818 | | | | | | 8,029 | | |
Total comprehensive income attributable to Reservoir
|
| | | | 16,771 | | | | | $ | 8,076 | | |
Cash Flow Data: | | | | | | | | | | | | | |
Net cash provided by operating activities
|
| | | $ | 16,247 | | | | | $ | 11,882 | | |
Net cash (used for) investing activities
|
| | | | (120,147) | | | | | | (107,806) | | |
Net cash provided by financing activities
|
| | | | 47,220 | | | | | | 147,030 | | |
(in thousands)
|
| |
As of
|
| |||||||||
|
March 31,
|
| |||||||||||
|
2021
|
| |
2020
|
| ||||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 9,210 | | | | | $ | 58,240 | | |
Total assets
|
| | | | 463,944 | | | | | | 396,591 | | |
Loans and secured notes payable
|
| | | | 211,532 | | | | | | 171,785 | | |
Total liabilities
|
| | | | 267,959 | | | | | | 225,499 | | |
Total shareholders’ equity
|
| | | | 195,985 | | | | | | 171,092 | | |
| | |
Historical
|
| |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| | |
Reservoir
Holdings, Inc. |
| |
Roth CH
Acquisition II Co. |
| |
Scenario 1 (Assuming No
Additional Redemption into Cash) |
| |
Scenario 2 (Assuming
Maximum Redemption into Cash) |
| ||||||||||||||||||||||||||||||
| | |
March 31,
2021 (A) |
| |
March 31,
2021 (B) |
| |
Transaction
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined Company |
| |
Transaction
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined Company |
| ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 9,209,920 | | | | | $ | 549,040 | | | | | $ | ― | | | | | | | | $ | 269,006,781 | | | | | $ | ― | | | | | | | | $ | 158,444,930 | | |
Cash and cash equivalents
|
| | | | ― | | | | | | ― | | | | | | 115,012,821 | | | |
5(c)1
|
| | | | ― | | | | | | 115,012,821 | | | |
5(c)1
|
| | | | ― | | |
Cash and cash equivalents
|
| | | | ― | | | | | | ― | | | | | | ― | | | | | | | | | ― | | | | | | (110,561,851) | | | |
5(c)2
|
| | | | ― | | |
Cash and cash equivalents
|
| | | | ― | | | | | | ― | | | | | | 144,235,000 | | | |
5(d)
|
| | | | ― | | | | | | 144,235,000 | | | |
5(d)
|
| | | | ― | | |
Accounts receivable, net
|
| | | | 15,813,384 | | | | | | ― | | | | | | ― | | | | | | | | | 15,813,384 | | | | | | ― | | | | | | | | | 15,813,384 | | |
Current portion of royalty advances
|
| | | | 12,840,855 | | | | | | ― | | | | | | ― | | | | | | | | | 12,840,855 | | | | | | ― | | | | | | | | | 12,840,855 | | |
Inventory and prepaid expenses
|
| | | | 1,406,379 | | | | | | 380,555 | | | | | | ― | | | | | | | | | 1,786,934 | | | | | | ― | | | | | | | | | 1,786,934 | | |
Total current assets
|
| | | | 39,270,538 | | | | | | 929,595 | | | | | | 259,247,821 | | | | | | | | | 299,447,954 | | | | | | 148,685,970 | | | | | | | | | 188,886,103 | | |
Cash and marketable securities held in Trust Account
|
| | | | ― | | | | | | 115,012,821 | | | | | | (115,012,821) | | | |
5(c)1
|
| | | | ― | | | | | | (115,012,821) | | | |
5(c)1
|
| | | | ― | | |
Property, plant and equipment, net
|
| | | | 321,766 | | | | | | ― | | | | | | ― | | | | | | | | | 321,766 | | | | | | ― | | | | | | | | | 321,766 | | |
Intangible assets, net
|
| | | | 393,238,010 | | | | | | ― | | | | | | ― | | | | | | | | | 393,238,010 | | | | | | ― | | | | | | | | | 393,238,010 | | |
Royalty advances, net of current portion
|
| | | | 28,741,225 | | | | | | ― | | | | | | ― | | | | | | | | | 28,741,225 | | | | | | ― | | | | | | | | | 28,741,225 | | |
Investment in equity affiliate
|
| | | | 1,591,179 | | | | | | ― | | | | | | ― | | | | | | | | | 1,591,179 | | | | | | ― | | | | | | | | | 1,591,179 | | |
Other assets
|
| | | | 781,735 | | | | | | ― | | | | | | ― | | | | | | | | | 781,735 | | | | | | ― | | | | | | | | | 781,735 | | |
Total assets
|
| | | $ | 463,944,453 | | | | | $ | 115,942,416 | | | | | $ | 144,235,000 | | | | | | | | $ | 724,121,869 | | | | | $ | 33,673,149 | | | | | | | | $ | 613,560,018 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 3,316,768 | | | | | $ | 125,034 | | | | | $ | 13,875,000 | | | |
5(f)
|
| | | $ | 17,316,802 | | | | | $ | 13,875,000 | | | |
5(f)
|
| | | $ | 17,316,802 | | |
Amounts due to related parties
|
| | | | 290,172 | | | | | | ― | | | | | | ― | | | | | | | | | 290,172 | | | | | | | | | | | | | | | 290,172 | | |
Accrued payroll
|
| | | | 1,634,852 | | | | | | ― | | | | | | ― | | | | | | | | | 1,634,852 | | | | | | ― | | | | | | | | | 1,634,852 | | |
Royalties payable
|
| | | | 14,656,566 | | | | | | ― | | | | | | ― | | | | | | | | | 14,656,566 | | | | | | ― | | | | | | | | | 14,656,566 | | |
Other current liabilities
|
| | | | 2,615,488 | | | | | | ― | | | | | | ― | | | | | | | | | 2,615,488 | | | | | | ― | | | | | | | | | 2,615,488 | | |
Current portion of loans and secured notes payable
|
| | | | 1,000,000 | | | | | | ― | | | | | | (1,000,000) | | | |
5(e)
|
| | | | ― | | | | | | (1,000,000) | | | |
5(e)
|
| | | | ― | | |
Income taxes payable
|
| | | | 533,495 | | | | | | ― | | | | | | ― | | | | | | | | | 533,495 | | | | | | ― | | | | | | | | | 533,495 | | |
Deferred revenue
|
| | | | 1,337,987 | | | | | | ― | | | | | | ― | | | | | | | | | 1,337,987 | | | | | | ― | | | | | | | | | 1,337,987 | | |
Total current liabilities
|
| | | | 25,385,328 | | | | | | 125,034 | | | | | | 12,875,000 | | | | | | | | | 38,385,362 | | | | | | 12,875,000 | | | | | | | | | 38,385,362 | | |
Long-term debt, net of current maturities
|
| | | | 17,500,000 | | | | | | ― | | | | | | (17,500,000) | | | |
5(e)
|
| | | | ― | | | | | | (17,500,000) | | | |
5(e)
|
| | | | ― | | |
Debt issue cost, net
|
| | | | (3,058,973) | | | | | | ― | | | | | | ― | | | | | | | | | (3,058,973) | | | | | | ― | | | | | | | | | (3,058,973) | | |
Secured line of credit
|
| | | | 197,090,848 | | | | | | ― | | | | | | 18,500,000 | | | |
5(e)
|
| | | | 215,590,848 | | | | | | 18,500,000 | | | |
5(e)
|
| | | | 215,590,848 | | |
Fair value of swaps
|
| | | | 4,566,537 | | | | | | ― | | | | | | ― | | | | | | | | | 4,566,537 | | | | | | ― | | | | | | | | | 4,566,537 | | |
Deferred income taxes
|
| | | | 19,735,537 | | | | | | ― | | | | | | ― | | | | | | | | | 19,735,537 | | | | | | ― | | | | | | | | | 19,735,537 | | |
Warrant liabilities
|
| | | | ― | | | | | | 178,750 | | | | | | ― | | | | | | | | | 178,750 | | | | | | ― | | | | | | | | | 178,750 | | |
Other liabilities
|
| | | | 6,739,971 | | | | | | ― | | | | | | ― | | | | | | | | | 6,739,971 | | | | | | ― | | | | | | | | | 6,739,971 | | |
Total liabilities
|
| | | | 267,959,248 | | | | | | 303,784 | | | | | | 13,875,000 | | | | | | | | | 282,138,032 | | | | | | 13,875,000 | | | | | | | | | 282,138,032 | | |
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption
|
| | | | ― | | | | | | 110,638,630 | | | | | | (110,638,630) | | | |
5(c)1
|
| | | | ― | | | | | | (110,638,630) | | | |
5(c)2
|
| | | | ― | | |
Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | ― | | | | | | 359 | | | | | | ― | | | | | | | | | 359 | | | | | | ― | | | | | | | | | 359 | | |
Common stock
|
| | | | 1 | | | | | | ― | | | | | | 4,364 | | | |
5(b)
|
| | | | 4,365 | | | | | | 4,364 | | | |
5(b)
|
| | | | 4,365 | | |
Common stock
|
| | | | ― | | | | | | ― | | | | | | 1,106 | | | |
5(c)1
|
| | | | 1,106 | | | | | | 43 | | | |
5(c)2
|
| | | | 43 | | |
Common stock
|
| | | | ― | | | | | | ― | | | | | | 1,500 | | | |
5(d)
|
| | | | 1,500 | | | | | | 1,500 | | | |
5(d)
|
| | | | 1,500 | | |
Preferred stock
|
| | | | 81,632,500 | | | | | | ― | | | | | | (81,632,500) | | | |
5(a)
|
| | | | ― | | | | | | (81,632,500) | | | |
5(a)
|
| | | | ― | | |
Additional paid-in capital
|
| | | | | | | | | | 5,370,137 | | | | | | ― | | | | | | | | | 5,370,137 | | | | | | ― | | | | | | | | | 5,370,137 | | |
Additional paid-in capital
|
| | | | 110,499,153 | | | | | | ― | | | | | | 81,632,500 | | | |
5(a)
|
| | | | 192,131,653 | | | | | | 81,632,500 | | | |
5(a)
|
| | | | 192,131,653 | | |
Additional paid-in capital
|
| | | | ― | | | | | | ― | | | | | | (4,364) | | | |
5(b)
|
| | | | (4,364) | | | | | | (4,364) | | | |
5(b)
|
| | | | (4,364) | | |
Additional paid-in capital
|
| | | | ― | | | | | | ― | | | | | | 110,637,524 | | | |
5(c)1
|
| | | | 110,637,524 | | | | | | 76,736 | | | |
5(c)2
|
| | | | 76,736 | | |
Additional paid-in capital
|
| | | | ― | | | | | | ― | | | | | | 144,233,500 | | | |
5(d)
|
| | | | 144,233,500 | | | | | | 144,233,500 | | | |
5(d)
|
| | | | 144,233,500 | | |
Additional paid-in capital
|
| | | | ― | | | | | | ― | | | | | | (13,875,000) | | | |
5(f)
|
| | | | (13,875,000) | | | | | | (13,875,000) | | | |
5(f)
|
| | | | (13,875,000) | | |
Additional paid-in capital
|
| | | | ― | | | | | | ― | | | | | | (370,494) | | | |
5(g)
|
| | | | (370,494) | | | | | | (370,494) | | | |
5(g)
|
| | | | (370,494) | | |
Retained earnings (accumulated deficit)
|
| | | | 751,496 | | | | | | (370,494) | | | | | | 370,494 | | | |
5(g)
|
| | | | 751,496 | | | | | | 370,494 | | | |
5(g)
|
| | | | 751,496 | | |
Accumulated other comprehensive income
|
| | | | 2,096,358 | | | | | | ― | | | | | | ― | | | | | | | | | 2,096,358 | | | | | | ― | | | | | | | | | 2,096,358 | | |
Noncontrolling interest
|
| | | | 1,005,697 | | | | | | ― | | | | | | ― | | | | | | | | | 1,005,697 | | | | | | ― | | | | | | | | | 1,005,697 | | |
Total stockholders’ equity
|
| | | | 195,985,205 | | | | | | 5,000,002 | | | | | | 240,998,630 | | | | | | | | | 441,983,837 | | | | | | 130,436,779 | | | | | | | | | 331,421,986 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 463,944,453 | | | | | $ | 115,942,416 | | | | | $ | 144,235,000 | | | | | | | | $ | 724,121,869 | | | | | $ | 33,673,149 | | | | | | | | $ | 613,560,018 | | |
| | |
Historical
|
| |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||
| | |
Reservoir
Holdings, Inc. |
| |
Roth CH
Acquisition II Co. |
| |
Scenario 1 (Assuming No
Additional Redemption into Cash) |
| |
Scenario 2 (Assuming
Maximum Redemption into Cash) |
| ||||||||||||||||||||||||||||||
| | |
Pro forma
Three Months Ended March 31, 2021 (A) |
| |
Historical
Three Months Ended March 31, 2021 (B) |
| |
Transaction
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined Company |
| |
Transaction
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined Company |
| ||||||||||||||||||
Revenues
|
| | | $ | 25,593,599 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 25,593,599 | | | | | $ | — | | | | | | | | $ | 25,593,599 | | |
Cost of revenue
|
| | | | 9,172,247 | | | | | | — | | | | | | — | | | | | | | | | 9,172,247 | | | | | | — | | | | | | | | | 9,172,247 | | |
Administration expenses
|
| | | | 4,585,927 | | | | | | 204,239 | | | | | | — | | | | | | | | | 4,790,166 | | | | | | — | | | | | | | | | 4,790,166 | | |
Amortization and depreciation
|
| | | | 3,681,589 | | | | | | — | | | | | | — | | | | | | | | | 3,681,589 | | | | | | — | | | | | | | | | 3,681,589 | | |
Total costs and expenses
|
| | | | 17,439,763 | | | | | | 204,239 | | | | | | — | | | | | | | | | 17,644,002 | | | | | | — | | | | | | | | | 17,644,002 | | |
Operating income
|
| | | | 8,153,836 | | | | | | (204,239) | | | | | | — | | | | | | | | | 7,949,597 | | | | | | — | | | | | | | | | 7,949,597 | | |
Interest expense
|
| | | | (2,304,183) | | | | | | — | | | | | | — | | | | | | | | | (2,304,183) | | | | | | — | | | | | | | | | (2,304,183) | | |
Gain on fair value of swaps
|
| | | | 1,728,584 | | | | | | — | | | | | | — | | | | | | | | | 1,728,584 | | | | | | — | | | | | | | | | 1,728,584 | | |
Loss on foreign exchange
|
| | | | (361,091) | | | | | | — | | | | | | — | | | | | | | | | (361,091) | | | | | | — | | | | | | | | | (361,091) | | |
Change in fair value of warrant liabilities
|
| | | | — | | | | | | (49,500) | | | | | | — | | | | | | | | | (49,500) | | | | | | — | | | | | | | | | (49,500) | | |
Interest and other income
|
| | | | 7,091 | | | | | | 6,208 | | | | | | — | | | | | | | | | 13,299 | | | | | | (6,208) | | | |
6(b)
|
| | | | 7,091 | | |
| | | | | (929,599) | | | | | | (43,292) | | | | | | — | | | | | | | | | (972,891) | | | | | | (6,208) | | | | | | | | | (979,099) | | |
Income before income taxes
|
| | | | 7,224,237 | | | | | | (247,531) | | | | | | — | | | | | | | | | 6,976,706 | | | | | | (6,208) | | | | | | | | | 6,970,498 | | |
Income tax benefit (expense)
|
| | | | (1,117,729) | | | | | | — | | | | | | — | | | | | | | | | (1,117,729) | | | | | | — | | | | | | | | | (1,117,729) | | |
Net income (loss)
|
| | | $ | 6,106,508 | | | | | $ | (247,531) | | | | | $ | — | | | | | | | | $ | 5,858,977 | | | | | $ | (6,208) | | | | | | | | $ | 5,852,769 | | |
Net income attributable to noncontrolling
interests |
| | | | (34,588) | | | | | | — | | | | | | — | | | | | | | | | (34,588) | | | | | | — | | | | | | | | | (34,588) | | |
Net income (loss) attributable to the
Company |
| | | $ | 6,071,920 | | | | | $ | (247,531) | | | | | $ | — | | | | | | | | $ | 5,824,389 | | | | | $ | (6,208) | | | | | | | | $ | 5,818,181 | | |
Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 26.62 | | | | | $ | (0.07) | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | $ | 0.09 | | |
Diluted
|
| | | $ | 26.62 | | | | | $ | (0.07) | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | $ | 0.09 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Basic
|
| | | | 145,560 | | | | | | 3,561,384 | | | | | | | | | |
6(c)
|
| | | | 73,299,393 | | | | | | | | | |
6(c)
|
| | | | 62,663,699 | | |
Diluted
|
| | | | 228,060 | | | | | | 3,561,384 | | | | | | | | | |
6(c)
|
| | | | 73,299,393 | | | | | | | | | |
6(c)
|
| | | | 62,663,699 | | |
| | |
Historical
|
| |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||
| | |
Reservoir
Holdings, Inc. |
| |
Roth CH
Acquisition II Co. |
| |
Scenario 1 (Assuming No
Additional Redemption into Cash) |
| |
Scenario 2 (Assuming
Maximum Redemption into Cash) |
| ||||||||||||||||||||||||||||||
| | |
Pro forma
December 31, 2020 (A) |
| |
Historical
December 31, 2020 (B) |
| |
Transaction
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined Company |
| |
Transaction
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined Company |
| ||||||||||||||||||
Revenues
|
| | | $ | 79,112,442 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 79,112,442 | | | | | $ | — | | | | | | | | $ | 79,112,442 | | |
Cost of revenue
|
| | | | 34,332,586 | | | | | | — | | | | | | — | | | | | | | | | 34,332,586 | | | | | | — | | | | | | | | | 34,332,586 | | |
Administration expenses
|
| | | | 13,056,548 | | | | | | 109,998 | | | | | | 345,368 | | | |
6(a)
|
| | | | 13,511,914 | | | | | | 345,368 | | | |
6(a)
|
| | | | 13,511,914 | | |
Amortization and depreciation
|
| | | | 13,007,252 | | | | | | — | | | | | | — | | | | | | | | | 13,007,252 | | | | | | — | | | | | | | | | 13,007,252 | | |
Total costs and expenses
|
| | | | 60,396,386 | | | | | | 109,998 | | | | | | 345,368 | | | | | | | | | 60,851,752 | | | | | | 345,368 | | | | | | | | | 60,851,752 | | |
Operating income
|
| | | | 18,716,056 | | | | | | (109,998) | | | | | | (345,368) | | | | | | | | | 18,260,690 | | | | | | (345,368) | | | | | | | | | 18,260,690 | | |
Interest expense
|
| | | | (8,610,363) | | | | | | — | | | | | | — | | | | | | | | | (8,610,363) | | | | | | — | | | | | | | | | (8,610,363) | | |
Loss on fair value of swaps
|
| | | | (3,426,690) | | | | | | — | | | | | | — | | | | | | | | | (3,426,690) | | | | | | — | | | | | | | | | (3,426,690) | | |
Loss on foreign exchange
|
| | | | (540,447) | | | | | | — | | | | | | — | | | | | | | | | (540,447) | | | | | | — | | | | | | | | | (540,447) | | |
Change in fair value of warrant liabilities
|
| | | | — | | | | | | (17,875) | | | | | | — | | | | | | | | | (17,875) | | | | | | — | | | | | | | | | (17,875) | | |
Initial public offering costs allocated to warrant
liabilities |
| | | | — | | | | | | (478) | | | | | | — | | | | | | | | | (478) | | | | | | — | | | | | | | | | (478) | | |
Interest and other income
|
| | | | 55,136 | | | | | | 6,613 | | | | | | — | | | | | | | | | 61,749 | | | | | | (6,613) | | | |
6(b)
|
| | | | 55,136 | | |
| | | | | (12,522,364) | | | | | | (11,740) | | | | | | — | | | | | | | | | (12,534,104) | | | | | | (6,613) | | | | | | | | | (12,540,717) | | |
Income before income taxes
|
| | | | 6,193,692 | | | | | | (121,738) | | | | | | (345,368) | | | | | | | | | 5,726,586 | | | | | | (351,981) | | | | | | | | | 5,719,973 | | |
Income tax benefit (expense)
|
| | | | (2,427,964) | | | | | | — | | | | | | — | | | | | | | | | (2,427,964) | | | | | | — | | | | | | | | | (2,427,964) | | |
Net income (loss)
|
| | | $ | 3,765,728 | | | | | $ | (121,738) | | | | | $ | (345,368) | | | | | | | | $ | 3,298,622 | | | | | $ | (351,981) | | | | | | | | $ | 3,292,009 | | |
Net loss attributable to noncontrolling interests
|
| | | | 34,942 | | | | | | — | | | | | | — | | | | | | | | | 34,942 | | | | | | — | | | | | | | | | 34,942 | | |
Net income (loss) attributable to the Company
|
| | | $ | 3,800,670 | | | | | $ | (121,738) | | | | | $ | (345,368) | | | | | | | | $ | 3,333,564 | | | | | $ | (351,981) | | | | | | | | $ | 3,326,951 | | |
Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 16.84 | | | | | $ | (0.05) | | | | | | | | | | | | | | $ | 0.05 | | | | | | | | | | | | | | $ | 0.05 | | |
Diluted
|
| | | $ | 16.84 | | | | | $ | (0.05) | | | | | | | | | | | | | | $ | 0.05 | | | | | | | | | | | | | | $ | 0.05 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 143,252 | | | | | | 2,545,512 | | | | | | | | | |
6(c)
|
| | | | 73,299,393 | | | | | | | | | |
6(c)
|
| | | | 62,625,702 | | |
Diluted
|
| | | | 225,629 | | | | | | 2,545,512 | | | | | | | | | |
6(c)
|
| | | | 73,299,393 | | | | | | | | | |
6(c)
|
| | | | 62,625,702 | | |
| | |
[i]
FYE March 31, 2021 |
| |
[ii]
9 mos. ended 12/31/20 |
| |
3 mos.
March 31, 2021 = [i] – [ii] |
| |||||||||
| | | | | | | | |
$
|
| | | | | | | |||
Revenues
|
| | | | 81,777,789 | | | | | | 56,184,190 | | | | | | 25,593,599 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 32,991,979 | | | | | | 23,819,732 | | | | | | 9,172,247 | | |
Amortization and depreciation
|
| | | | 14,128,604 | | | | | | 10,447,015 | | | | | | 3,681,589 | | |
Administration expenses
|
| | | | 14,986,085 | | | | | | 10,400,158 | | | | | | 4,585,927 | | |
| | |
[i]
FYE March 31, 2021 |
| |
[ii]
9 mos. ended 12/31/20 |
| |
3 mos.
March 31, 2021 = [i] – [ii] |
| |||||||||
| | | | | | | | |
$
|
| | | | | | | |||
Total costs and expenses
|
| | | | 62,106,668 | | | | | | 44,666,905 | | | | | | 17,439,763 | | |
Operating income
|
| | | | 19,671,121 | | | | | | 11,517,285 | | | | | | 8,153,836 | | |
Interest expense
|
| | | | (8,972,100) | | | | | | (6,667,917) | | | | | | (2,304,183) | | |
(Loss) on foreign exchange
|
| | | | (910,799) | | | | | | (549,708) | | | | | | (361,091) | | |
Gain on fair value of swaps
|
| | | | 2,988,322 | | | | | | 1,259,738 | | | | | | 1,728,584 | | |
Interest and other income
|
| | | | 13,243 | | | | | | 6,152 | | | | | | 7,091 | | |
Income before income taxes
|
| | | | 12,789,787 | | | | | | 5,565,550 | | | | | | 7,224,237 | | |
Income tax expense
|
| | | | 2,454,153 | | | | | | 1,336,424 | | | | | | 1,117,729 | | |
Net income
|
| | | | 10,335,634 | | | | | | 4,229,126 | | | | | | 6,106,508 | | |
Net (income) loss attributable to noncontrolling interests
|
| | | | (46,673) | | | | | | (12,085) | | | | | | (34,588) | | |
Net income attributable to Reservoir Holdings Inc.
|
| | | | 10,288,961 | | | | | | 4,217,041 | | | | | | 6,071,920 | | |
|
| | | | | | | | |
3 mos. ended 3/31/20
|
| | | | | | | |||||||||||||||
|
[A]
9 mos. ended 12/31/20 |
| |
[i]
FYE March 31, 2020 |
| |
[ii]
9 mos. ended 12/31/19 |
| |
[B] 3 mos.
March 31, 2020 = [i] – [ii] |
| |
[C] = [A] + [B]
12 mos. ended 12/31/20 |
| |||||||||||||||||
| | | | | | | | |
$
|
| | | | | | | | | | | | | | | | | | | |||
Revenues
|
| | | | 56,184,190 | | | | | | 63,238,672 | | | | | | 40,310,420 | | | | | | 22,928,252 | | | | | | 79,112,442 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 23,819,732 | | | | | | 27,305,489 | | | | | | 16,792,635 | | | | | | 10,512,854 | | | | | | 34,332,586 | | |
Amortization and depreciation
|
| | | | 10,447,015 | | | | | | 8,423,197 | | | | | | 5,862,960 | | | | | | 2,560,237 | | | | | | 13,007,252 | | |
Administration expenses
|
| | | | 10,400,158 | | | | | | 12,032,673 | | | | | | 9,376,283 | | | | | | 2,656,390 | | | | | | 13,056,548 | | |
Total costs and expenses
|
| | | | 44,666,905 | | | | | | 47,761,359 | | | | | | 32,031,878 | | | | | | 15,729,481 | | | | | | 60,396,386 | | |
Operating Income
|
| | | | 11,517,285 | | | | | | 15,477,313 | | | | | | 8,278,542 | | | | | | 7,198,771 | | | | | | 18,716,056 | | |
Interest expense
|
| | | | (6,667,917) | | | | | | (6,463,381) | | | | | | (4,520,935) | | | | | | (1,942,446) | | | | | | (8,610,363) | | |
(Loss) gain on foreign exchange
|
| | | | (549,708) | | | | | | 30,700 | | | | | | 21,439 | | | | | | 9,261 | | | | | | (540,447) | | |
Gain (loss) on fair value of swaps
|
| | | | 1,259,738 | | | | | | (5,555,702) | | | | | | (869,274) | | | | | | (4,686,428) | | | | | | (3,426,690) | | |
Interest and other income
|
| | | | 6,152 | | | | | | 76,894 | | | | | | 27,910 | | | | | | 48,984 | | | | | | 55,136 | | |
Gain on retirement of RMM Issuer debt
|
| | | | — | | | | | | 10,644,084 | | | | | | 10,644,084 | | | | | | — | | | | | | — | | |
Income before income taxes
|
| | | | 5,565,550 | | | | | | 14,209,908 | | | | | | 13,581,766 | | | | | | 628,142 | | | | | | 6,193,692 | | |
Income tax expense
|
| | | | 1,336,424 | | | | | | 4,199,141 | | | | | | 3,107,601 | | | | | | 1,091,540 | | | | | | 2,427,964 | | |
Net income
|
| | | | 4,229,126 | | | | | | 10,010,767 | | | | | | 10,474,165 | | | | | | (463,398) | | | | | | 3,765,728 | | |
| | | | | | | | |
3 mos. ended 3/31/20
|
| | | | | | | |||||||||||||||
|
[A]
9 mos. ended 12/31/20 |
| |
[i]
FYE March 31, 2020 |
| |
[ii]
9 mos. ended 12/31/19 |
| |
[B] 3 mos.
March 31, 2020 = [i] – [ii] |
| |
[C] = [A] + [B]
12 mos. ended 12/31/20 |
| |||||||||||||||||
| | | | | | | | |
$
|
| | | | | | | | | | | | | | | | | | | |||
Net loss attributable to noncontrolling interests
|
| | | | (12,085) | | | | | | 47,027 | | | | | | — | | | | | | 47,027 | | | | | | 34,942 | | |
Net income attributable to Reservoir
Holdings Inc. |
| | | | 4,217,041 | | | | | | 10,057,794 | | | | | | 10,474,165 | | | | | | (416,371) | | | | | | 3,800,670 | | |
|
|
Reservoir Common Stock assumed outstanding prior to the consummation of the
Business Combination and the PIPE Investment |
| | | | 145,560 | | |
|
Assumed Exchange Ratio
|
| | | | 191.3944 | | |
| | | | | | 27,859,355 | | |
|
Reservoir Preferred Stock assumed outstanding prior to the consummation of the
Business Combination and the PIPE Investment |
| | | | 82,500 | | |
|
Assumed Exchange Ratio
|
| | | | 191.3944 | | |
| | | | | | 15,790,038 | | |
|
Estimated shares of ROCC Common Stock issued to Reservoir Stockholders upon consummation of the Business Combination and the PIPE Investment
|
| | | | 43,649,393 | | |
| | |
3 Months Ended
March 31, 2021 |
| |
Year Ended
December 31, 2020 |
| ||||||||||||||||||
|
Scenario 1
Combined (Assuming No Additional Redemptions Into Cash) |
| |
Scenario 2
Combined (Assuming Maximum Redemptions Into Cash) |
| |
Scenario 1
Combined (Assuming No Additional Redemptions Into Cash) |
| |
Scenario 2
Combined (Assuming Maximum Redemptions Into Cash) |
| ||||||||||||||
Weighted-average common shares outstanding, basic and diluted:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Reservoir Holdings, Inc. weighted average shares outstanding(1)
|
| | | | 228,060 | | | | | | 228,060 | | | | | | 225,629 | | | | | | 225,629 | | |
Reservoir Holdings, Inc. shares of common stock surrendered and cancelled at acquisition
|
| | | | (228,060) | | | | | | (228,060) | | | | | | (225,629) | | | | | | (225,629) | | |
Roth CH Acquisition II, Inc. shares not subject to redemption(2)
|
| | | | 3,586,137 | | | | | | 3,586,137 | | | | | | 3,561,384 | | | | | | 3,561,384 | | |
Roth CH Acquisition II, Inc. shares subject to redemption reclassified to equity
|
| | | | 11,063,863 | | | | | | 428,169 | | | | | | 11,088,616 | | | | | | 414,925 | | |
Sale of additional Roth CH Acquisition II, Inc. shares in conjunction with the Recapitalization
|
| | | | 15,000,000 | | | | | | 15,000,000 | | | | | | 15,000,000 | | | | | | 15,000,000 | | |
Shares issued to Reservoir Holdings, Inc. in recapitalization
|
| | | | 43,649,393 | | | | | | 43,649,393 | | | | | | 43,649,393 | | | | | | 43,649,393 | | |
Weighted-average common shares outstanding, basic and diluted:
|
| | | | 73,299,393 | | | | | | 62,663,699 | | | | | | 73,299,393 | | | | | | 62,625,702 | | |
| | | | | | | | | | | | | | |
Unaudited Combined
Pro Forma |
| |||||||||
| | |
Reservoir
(Historical) |
| |
ROCC
(Historical) |
| |
(Assuming
No Redemptions) |
| |
(Assuming Maximum
Redemptions) |
| ||||||||||||
As of and for the three months ended March 31,2021(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share(2)
|
| | | $ | 785.61 | | | | | $ | 1.39 | | | | | $ | 6.03 | | | | | $ | 5.29 | | |
Weighted average shares outstanding of common stock — basic
|
| | | | 145,560 | | | | | | 3,561,384 | | | | | | 73,299,393 | | | | | | 62,663,699 | | |
Weighted average shares outstanding of common stock — diluted
|
| | | | 228,060 | | | | | | 3,561,384 | | | | | | 73,299,393 | | | | | | 62,663,699 | | |
Earnings (loss) per share of common
stock — basic |
| | | $ | 26.62 | | | | | $ | (0.07) | | | | | $ | 0.08 | | | | | $ | 0.09 | | |
Earnings (loss) per share of common
stock — diluted |
| | | $ | 26.62 | | | | | $ | (0.07) | | | | | $ | 0.08 | | | | | $ | 0.09 | | |
As of and for the year ended December 31, 2020(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share(2)
|
| | | $ | 739.57 | | | | | $ | 1.40 | | | | | $ | 5.94 | | | | | $ | 5.19 | | |
Weighted average shares outstanding of common stock — basic
|
| | | | 143,252 | | | | | | 2,545,512 | | | | | | 73,299,393 | | | | | | 62,625,702 | | |
Weighted average shares outstanding of common stock — diluted
|
| | | | 225,629 | | | | | | 2,545,512 | | | | | | 73,299,393 | | | | | | 62,625,702 | | |
Earnings (loss) per share of common
stock — basic |
| | | | 16.84 | | | | | | (0.05) | | | | | $ | 0.05 | | | | | $ | 0.05 | | |
Earnings (loss) per share of common
stock — diluted |
| | | | 16.84 | | | | | | (0.05) | | | | | $ | 0.05 | | | | | $ | 0.05 | | |
(in millions, except percentages and
leverage) |
| |
FY2019A
|
| |
FY2020A
|
| |
FY2021E
|
| |
FY2022E
|
| |
FY2023E
|
| |
FY2024E
|
| |
FY2025E
|
| |||||||||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Music Publishing revenues
|
| | | $ | 43 | | | | | $ | 54 | | | | | $ | 67 | | | | | $ | 78 | | | | | $ | 95 | | | | | $ | 109 | | | | | $ | 127 | | |
% Growth
|
| | | | 33% | | | | | | 27% | | | | | | 23% | | | | | | 17% | | | | | | 23% | | | | | | 14% | | | | | | 16% | | |
% Total revenues
|
| | | | 95% | | | | | | 85% | | | | | | 83% | | | | | | 75% | | | | | | 80% | | | | | | 80% | | | | | | 79% | | |
Recorded Music revenues
|
| | | $ | 2 | | | | | $ | 9 | | | | | $ | 12 | | | | | $ | 25 | | | | | $ | 22 | | | | | $ | 27 | | | | | $ | 32 | | |
% Growth
|
| | | | * | | | | | | 361% | | | | | | 35% | | | | | | 106% | | | | | | (10)% | | | | | | 19% | | | | | | 18% | | |
% Total revenues
|
| | | | 4% | | | | | | 14% | | | | | | 15% | | | | | | 24% | | | | | | 19% | | | | | | 19% | | | | | | 20% | | |
Other revenues
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | |
% Growth
|
| | | | 272% | | | | | | (13)% | | | | | | 223% | | | | | | 5% | | | | | | 5% | | | | | | 5% | | | | | | 5% | | |
% Total revenues
|
| | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | |
Total revenues
|
| | | $ | 45 | | | | | $ | 64 | | | | | $ | 80 | | | | | $ | 104 | | | | | $ | 119 | | | | | $ | 137 | | | | | $ | 160 | | |
% Growth
|
| | | | 40% | | | | | | 41% | | | | | | 26% | | | | | | 30% | | | | | | 15% | | | | | | 15% | | | | | | 16% | | |
Total Gross Profit: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Music Publishing gross profit (NPS)
|
| | | $ | 25 | | | | | $ | 29 | | | | | $ | 37 | | | | | $ | 40 | | | | | $ | 50 | | | | | $ | 56 | | | | | $ | 64 | | |
% Growth
|
| | | | 26% | | | | | | 18% | | | | | | 27% | | | | | | 8% | | | | | | 25% | | | | | | 13% | | | | | | 14% | | |
% Segment revenues
|
| | | | 58% | | | | | | 54% | | | | | | 56% | | | | | | 52% | | | | | | 52% | | | | | | 51% | | | | | | 50% | | |
Recorded Music Gross profit (NLS)
|
| | | $ | 1 | | | | | $ | 7 | | | | | $ | 9 | | | | | $ | 19 | | | | | $ | 17 | | | | | $ | 21 | | | | | $ | 25 | | |
% Growth
|
| | | | * | | | | | | 462% | | | | | | 31% | | | | | | 121% | | | | | | (11)% | | | | | | 22% | | | | | | 20% | | |
% Segment revenues
|
| | | | 60% | | | | | | 73% | | | | | | 71% | | | | | | 76% | | | | | | 76% | | | | | | 78% | | | | | | 79% | | |
Other gross profit
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | | | | $ | 1 | | |
Total gross profit
|
| | | $ | 26 | | | | | $ | 36 | | | | | $ | 47 | | | | | $ | 60 | | | | | $ | 68 | | | | | $ | 78 | | | | | $ | 90 | | |
% Growth
|
| | | | 33% | | | | | | 37% | | | | | | 30% | | | | | | 29% | | | | | | 13% | | | | | | 15% | | | | | | 15% | | |
% Total revenues
|
| | | | 58% | | | | | | 57% | | | | | | 59% | | | | | | 58% | | | | | | 57% | | | | | | 57% | | | | | | 56% | | |
Adjusted EBITDA(1)
|
| | | $ | 15 | | | | | $ | 21 | | | | | $ | 29 | | | | | $ | 40 | | | | | $ | 47 | | | | | $ | 57 | | | | | $ | 68 | | |
% Growth
|
| | | | 54% | | | | | | 41% | | | | | | 41% | | | | | | 39% | | | | | | 18% | | | | | | 20% | | | | | | 19% | | |
% Total revenues
|
| | | | 32% | | | | | | 32% | | | | | | 36% | | | | | | 39% | | | | | | 40% | | | | | | 41% | | | | | | 43% | | |
Balance Sheet and Cash Flow Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(1)
|
| | | $ | 15 | | | | | $ | 21 | | | | | $ | 29 | | | | | $ | 40 | | | | | $ | 47 | | | | | $ | 57 | | | | | $ | 68 | | |
Recoupments
|
| | | | 10 | | | | | | 14 | | | | | | 14 | | | | | | 12 | | | | | | 11 | | | | | | 13 | | | | | | 17 | | |
Other
|
| | | | (13) | | | | | | (6) | | | | | | (9) | | | | | | (6) | | | | | | (5) | | | | | | (6) | | | | | | (7) | | |
Cash from operations
|
| | | | 12 | | | | | | 29 | | | | | | 33 | | | | | | 46 | | | | | | 54 | | | | | | 63 | | | | | | 78 | | |
Acquisitions
|
| | | $ | (32) | | | | | $ | (108) | | | | | $ | (116) | | | | | $ | (179) | | | | | $ | (76) | | | | | $ | (75) | | | | | $ | (75) | | |
Advances and other
|
| | | | (18) | | | | | | (22) | | | | | | (17) | | | | | | (27) | | | | | | (31) | | | | | | (25) | | | | | | (25) | | |
Cash from investing
|
| | | | (50) | | | | | | (130) | | | | | | (133) | | | | | | (206) | | | | | | (107) | | | | | | (100) | | | | | | (101) | | |
Free cash flow
|
| | | $ | (38) | | | | | $ | (102) | | | | | $ | (100) | | | | | $ | (160) | | | | | $ | (53) | | | | | $ | (37) | | | | | $ | (22) | | |
Adjusted free cash flow(2)
|
| | | | (6) | | | | | | 7 | | | | | | 16 | | | | | | 19 | | | | | | 23 | | | | | | 38 | | | | | | 53 | | |
% Growth
|
| | | | * | | | | | | * | | | | | | 139% | | | | | | 20% | | | | | | 20% | | | | | | 64% | | | | | | 39% | | |
% Total revenues
|
| | | | (12)% | | | | | | 11% | | | | | | 20% | | | | | | 19% | | | | | | 19% | | | | | | 28% | | | | | | 33% | | |
% Total EBITDA
|
| | | | (39)% | | | | | | 33% | | | | | | 56% | | | | | | 48% | | | | | | 49% | | | | | | 67% | | | | | | 78% | | |
(in millions, except percentages and
leverage) |
| |
FY2019A
|
| |
FY2020A
|
| |
FY2021E
|
| |
FY2022E
|
| |
FY2023E
|
| |
FY2024E
|
| |
FY2025E
|
| |||||||||||||||||||||
Cash as of period end
|
| | | $ | 9 | | | | | $ | 58 | | | | | $ | 258 | | | | | $ | 10 | | | | | $ | 10 | | | | | $ | 10 | | | | | $ | 10 | | |
Debt as of period end
|
| | | | 105 | | | | | | 176 | | | | | | 216 | | | | | | 128 | | | | | | 181 | | | | | | 218 | | | | | | 241 | | |
Net debt
|
| | | | 96 | | | | | | 118 | | | | | | (42) | | | | | | 118 | | | | | | 171 | | | | | | 208 | | | | | | 231 | | |
Gross leverage
|
| | | | 7.2x | | | | | | 8.5x | | | | | | 7.4x | | | | | | 3.2x | | | | | | 3.8x | | | | | | 3.8x | | | | | | 3.5x | | |
Net leverage
|
| | | | 6.6x | | | | | | 5.7x | | | | | | (1.5)x | | | | | | 2.9x | | | | | | 3.6x | | | | | | 3.7x | | | | | | 3.4x | | |
Name
|
| |
Age
|
| |
Position
|
| |||
Golnar Khosrowshahi(1) | | | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue(1) | | | | | 49 | | | |
President, Chief Operating Officer and Director
|
|
Stephen M. Cook(1) | | | | | 45 | | | | Director | |
Ezra S. Field(1) | | | | | 51 | | | | Chairman of the Board of Directors | |
Neil de Gelder(1) | | | | | 68 | | | | Director | |
Jennifer G. Koss(1) | | | | | 43 | | | | Director | |
Adam Rothstein(2) | | | | | 49 | | | | Director | |
Ryan P. Taylor(1) | | | | | 45 | | | | Director | |
Name
|
| |
Age
|
| |
Position
|
| |||
Byron Roth | | | | | 58 | | | |
Chief Executive Officer and Chairman of the ROCC Board
|
|
Gordon Roth | | | | | 66 | | | | Chief Financial Officer | |
Aaron Gurewitz | | | | | 52 | | | | Co-President | |
Rick Hartfiel | | | | | 57 | | | | Co-President | |
John Lipman | | | | | 44 | | | | Chief Operating Officer and Director | |
Daniel M. Friedberg | | | | | 59 | | | | Independent Director | |
Molly Montgomery | | | | | 54 | | | | Independent Director | |
Adam Rothstein | | | | | 49 | | | | Independent Director | |
Name
|
| |
Age
|
| |
Position
|
| |||
Golnar Khosrowshahi
|
| | | | 49 | | | | Chief Executive Officer and Director | |
Rell Lafargue
|
| | | | 49 | | | | President, Chief Operating Officer and Director | |
Stephen M. Cook
|
| | | | 45 | | | | Director | |
Ali Hedayat
|
| | | | 46 | | | | Director | |
Joel Herold
|
| | | | 47 | | | | Director | |
David Spivak
|
| | | | 53 | | | | Director | |
Ryan P. Taylor
|
| | | | 45 | | | | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary ($)
|
| |
Bonus ($)(1)
|
| |
Non-Equity
Incentive Plan Compensation ($)(1) |
| |
All Other
Compensation ($) |
| |
Total ($)
|
| ||||||||||||||||||
Golnar Khosrowshahi
Chief Executive Officer |
| | | | 2021 | | | | | | 370,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | 570,000 | | |
Rell Lafargue
President and Chief Operating Officer |
| | | | 2021 | | | | | | 367,889 | | | | | | — | | | | | | 1,408,918 | | | | | | — | | | | | | 1,776,807 | | |
| | | | | |
Option Awards(1)
|
| ||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of Securities
Underlying Unexercised Options Exercisable |
| |
Number of Securities
Underlying Unexercised Options Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |||||||||
Golnar Khosrowshahi
|
| |
May 1, 2019
|
| | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | |
May 1, 2029
|
|
Rell Lafargue
|
| |
May 1, 2019
|
| | | | 862.50 | | | | | | 937.50 | | | | | | 1,000 | | | |
May 1, 2029
|
|
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Revenues | | | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 32,992 | | | | | | 27,305 | | | | | | 5,687 | | | | | | 21% | | |
Amortization and depreciation
|
| | | | 14,129 | | | | | | 8,423 | | | | | | 5,706 | | | | | | 68% | | |
Administration expenses
|
| | | | 14,986 | | | | | | 12,033 | | | | | | 2,953 | | | | | | 25% | | |
Total costs and expenses
|
| | | | 62,107 | | | | | | 47,761 | | | | | | 14,346 | | | | | | 30% | | |
Operating Income
|
| | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
Interest expense
|
| | | | (8,972) | | | | | | (6,463) | | | | | | (2,509) | | | | | | 39% | | |
(Loss) Gain on foreign exchange
|
| | | | (911) | | | | | | 31 | | | | | | (942) | | | | | | N/A% | | |
Gain (Loss) on fair value of swaps
|
| | | | 2,988 | | | | | | (5,556) | | | | | | 8,544 | | | | | | (154)% | | |
Interest and other income
|
| | | | 13 | | | | | | 77 | | | | | | (64) | | | | | | (83)% | | |
Gain on retirement of RMM Issuer debt
|
| | | | — | | | | | | 10,644 | | | | | | (10,644) | | | | | | N/A% | | |
Income before income taxes
|
| | | | 12,790 | | | | | | 14,210 | | | | | | (1,420) | | | | | | (10)% | | |
Income tax expense
|
| | | | 2,454 | | | | | | 4,199 | | | | | | (1,745) | | | | | | (42)% | | |
Net income
|
| | | | 10,336 | | | | | | 10,011 | | | | | | 325 | | | | | | 3% | | |
Net loss attributable to noncontrolling interests
|
| | | | (47) | | | | | | 47 | | | | | | (94) | | | | | | N/A% | | |
Net income attributable to Reservoir Holdings Inc.
|
| | | | 10,289 | | | | | | 10,058 | | | | | | 231 | | | | | | 2% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Revenue by Type | | | | | | | | | | | | | | | | | | | | | | | | | |
Performance
|
| | | $ | 16,515 | | | | | $ | 13,656 | | | | | $ | 2,859 | | | | | | 21% | | |
Digital
|
| | | | 35,028 | | | | | | 28,798 | | | | | | 6,230 | | | | | | 22% | | |
Mechanical
|
| | | | 3,050 | | | | | | 2,473 | | | | | | 577 | | | | | | 23% | | |
Synchronization
|
| | | | 9,891 | | | | | | 6,892 | | | | | | 2,999 | | | | | | 44% | | |
Other
|
| | | | 2,607 | | | | | | 2,124 | | | | | | 483 | | | | | | 23% | | |
Total Music Publishing
|
| | | | 67,091 | | | | | | 53,942 | | | | | | 13,149 | | | | | | 24% | | |
Digital
|
| | | | 7,603 | | | | | | 4,569 | | | | | | 3,034 | | | | | | 66% | | |
Physical
|
| | | | 3,963 | | | | | | 1,432 | | | | | | 2,531 | | | | | | 177% | | |
Synchronization
|
| | | | 492 | | | | | | 1,385 | | | | | | (893) | | | | | | (64)% | | |
Neighboring rights
|
| | | | 1,537 | | | | | | 1,642 | | | | | | (105) | | | | | | (6)% | | |
Total Recorded Music
|
| | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Other revenue
|
| | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total Revenue
|
| | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
Revenue by Geographical Location | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Music Publishing
|
| | | $ | 34,683 | | | | | $ | 30,803 | | | | | $ | 3,880 | | | | | | 13% | | |
U.S. Recorded Music
|
| | | | 4,892 | | | | | | 3,476 | | | | | | 1,416 | | | | | | 41% | | |
U.S. Other Revenue
|
| | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Total U.S.
|
| | | | 40,667 | | | | | | 34,547 | | | | | | 6,120 | | | | | | 18% | | |
International Music Publishing
|
| | | | 32,408 | | | | | | 23,139 | | | | | | 9,269 | | | | | | 40% | | |
International Recorded Music
|
| | | | 8,703 | | | | | | 5,553 | | | | | | 3,150 | | | | | | 57% | | |
Total International
|
| | | | 41,111 | | | | | | 28,692 | | | | | | 12,419 | | | | | | 43% | | |
Total Revenue
|
| | | $ | 81,778 | | | | | $ | 63,239 | | | | | $ | 18,539 | | | | | | 29% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Writer royalties and other publishing costs
|
| | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Artist royalties and other recorded costs
|
| | | | 3,863 | | | | | | 3,812 | | | | | | 51 | | | | | | 1% | | |
Total cost of revenues
|
| | | $ | 32,992 | | | | | $ | 27,305 | | | | | $ | 5,687 | | | | | | 21% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Administration expenses
|
| | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
Total administration expenses
|
| | | $ | 14,986 | | | | | $ | 12,033 | | | | | $ | 2,953 | | | | | | 25% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Operating income
|
| | | $ | 19,671 | | | | | $ | 15,477 | | | | | $ | 4,194 | | | | | | 27% | | |
Amortization expense
|
| | | | 13,907 | | | | | | 8,250 | | | | | | 5,657 | | | | | | 69% | | |
Depreciation expense
|
| | | | 222 | | | | | | 173 | | | | | | 49 | | | | | | 28% | | |
OIBDA
|
| | | $ | 33,800 | | | | | $ | 23,901 | | | | | $ | 9,901 | | | | | | 41% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Music Publishing | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 67,091 | | | | | $ | 53,942 | | | | | $ | 13,149 | | | | | | 24% | | |
Operating income
|
| | | | 15,075 | | | | | | 13,637 | | | | | | 1,438 | | | | | | 11% | | |
OIBDA
|
| | | | 26,867 | | | | | | 20,290 | | | | | | 6,577 | | | | | | 32% | | |
Recorded Music | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | | 13,595 | | | | | | 9,028 | | | | | | 4,567 | | | | | | 51% | | |
Operating income
|
| | | | 4,334 | | | | | | 1,709 | | | | | | 2,625 | | | | | | 154% | | |
OIBDA
|
| | | | 6,565 | | | | | | 3,479 | | | | | | 3,086 | | | | | | 89% | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | | 1,092 | | | | | | 268 | | | | | | 824 | | | | | | 307% | | |
Operating income
|
| | | | 262 | | | | | | 132 | | | | | | 130 | | | | | | 100% | | |
OIBDA
|
| | | | 368 | | | | | | 132 | | | | | | 236 | | | | | | 181% | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | | 81,778 | | | | | | 63,239 | | | | | | 18,539 | | | | | | 29% | | |
Operating income
|
| | | | 19,671 | | | | | | 15,477 | | | | | | 4,194 | | | | | | 27% | | |
OIBDA
|
| | | | 33,800 | | | | | | 23,901 | | | | | | 9,899 | | | | | | 41% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Writer royalties and other publishing costs
|
| | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
Total cost of revenues
|
| | | $ | 29,129 | | | | | $ | 23,493 | | | | | $ | 5,636 | | | | | | 24% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Administration expenses
|
| | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
Total administration expenses
|
| | | $ | 11,095 | | | | | $ | 10,159 | | | | | $ | 936 | | | | | | 9% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Operating income
|
| | | $ | 15,075 | | | | | $ | 13,637 | | | | | $ | 1,438 | | | | | | 11% | | |
Depreciation and amortization
|
| | | | 11,792 | | | | | | 6,653 | | | | | | 5,139 | | | | | | 77% | | |
OIBDA
|
| | | $ | 26,867 | | | | | $ | 20,290 | | | | | $ | 6,577 | | | | | | 32% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Artist royalties and other recorded music costs
|
| | | $ | 3,863 | | | | | $ | 3,812 | | | | | $ | 51 | | | | | | 1% | | |
Total cost of revenues
|
| | | $ | 3,863 | | | | | $ | 3,812 | | | | | $ | 51 | | | | | | 1% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Administration expenses
|
| | | $ | 3,167 | | | | | $ | 1,738 | | | | | $ | 1,429 | | | | | | 82% | | |
Total administration expenses
|
| | | $ | 3,167 | | | | | $ | 1,738 | | | | | $ | 1,429 | | | | | | 82% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Operating income
|
| | | $ | 4,334 | | | | | $ | 1,709 | | | | | $ | 2,625 | | | | | | 154% | | |
Depreciation and amortization
|
| | | | 2,231 | | | | | | 1,770 | | | | | | 461 | | | | | | 26% | | |
OIBDA
|
| | | $ | 6,565 | | | | | $ | 3,479 | | | | | $ | 3,086 | | | | | | 89% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 16,247 | | | | | $ | 11,882 | | | | | $ | 4,365 | | | | | | 37% | | |
Investing activities
|
| | | | (120,147) | | | | | | (107,806) | | | | | | (12,341) | | | | | | 11% | | |
Financing activities
|
| | | | 47,220 | | | | | | 147,030 | | | | | | (99,810) | | | | | | -68% | | |
|
Term Loan
|
| | | $ | 19,500 | | |
|
Revolving Credit
|
| | | | 197,091 | | |
|
Total outstanding debt
|
| | | $ | 216,591 | | |
Firm Commitments and Outstanding Debt
|
| |
Less than
1 year |
| |
2 – 3
years |
| |
4 – 5
years |
| |
After
5 years |
| |
Total
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Term Loan
|
| | | $ | 1,000 | | | | | $ | 2,000 | | | | | $ | 16,500 | | | | | | — | | | | | $ | 19,500 | | |
Revolving Credit
|
| | | | — | | | | | | — | | | | | | 197,091 | | | | | | — | | | | | | 197,091 | | |
Interest on Term Loan(1)
|
| | | | 665 | | | | | | 1,225 | | | | | | 289 | | | | | | — | | | | | | 2,179 | | |
Interest on Revolving Credit(1)
|
| | | | 6,898 | | | | | | 13,796 | | | | | | 6,898 | | | | | | — | | | | | | 27,593 | | |
Operating leases(2)
|
| | | | 818 | | | | | | 835 | | | | | | — | | | | | | — | | | | | | 1,653 | | |
Artist, songwriter, and co-publisher commitments(3)*
|
| | | | 5,733 | | | | | | 796 | | | | | | — | | | | | | — | | | | | | 6,529 | | |
Asset acquisition and share purchase acquisition commitments(4)
|
| | | | 5,713 | | | | | | 400 | | | | | | 558 | | | | | | — | | | | | | 6,671 | | |
Total firm commitments and outstanding debt
|
| | | $ | 20,827 | | | | | $ | 19,052 | | | | | $ | 221,336 | | | | | $ | — | | | | | $ | 261,215 | | |
Name
|
| |
Age
|
| |
Position
|
|
Golnar Khosrowshahi(1) | | |
49
|
| | Chief Executive Officer and Director | |
Rell Lafargue(1) | | |
49
|
| | President, Chief Operating Officer and Director | |
Jim Heindlmeyer | | |
49
|
| | Chief Financial Officer | |
Stephen M. Cook(1) | | |
45
|
| | Director | |
Ezra S. Field(1) | | |
51
|
| | Chair of the Board of Directors | |
Neil de Gelder(1) | | |
68
|
| | Director | |
Jennifer G. Koss(1) | | |
43
|
| | Director | |
Adam Rothstein(2) | | |
49
|
| | Director | |
Ryan P. Taylor(1) | | |
45
|
| | Director | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| | ||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No
Redemptions |
| |
Assuming 100%
Redemptions |
| | |||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| | ||||||||||||||||||||
Directors and Executive Officers of ROCC:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Byron Roth(2)
|
| | | | 2,234,000 | | | | | | 15.2% | | | | | | 2,234,000 | | | | | | 3.0% | | | | | | 2,234,000 | | | | | | 3.6% | | | | ||
Gordon Roth(3)
|
| | | | 2,097,063 | | | | | | 14.3 | | | | | | 2,097,063 | | | | | | 2.9 | | | | | | 2,097,063 | | | | | | 3.3 | | | | ||
Aaron Gurewitz(4)
|
| | | | 35,425 | | | | | | * | | | | | | 35,425 | | | | | | * | | | | | | 35,425 | | | | | | * | | | | ||
John Lipman(5)
|
| | | | 397,638 | | | | | | 2.5 | | | | | | 397,638 | | | | | | * | | | | | | 397,638 | | | | | | * | | | | ||
Rick Hartfiel(6)
|
| | | | — | | | | | | — | | | | | | 15,000 | | | | | | * | | | | | | 15,000 | | | | | | * | | | | ||
Molly Montgomery(7)
|
| | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | ||
Daniel M. Friedberg(8)
|
| | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | | | 88,189 | | | | | | * | | | | ||
Adam Rothstein(9)
|
| | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | ||
All Directors and Executive Officers of
ROCC as a Group (8 Individuals) |
| | | | 2,985,441 | | | | | | 20.1 | | | | | | 3,000,441 | | | | | | 4.1 | | | | | | 3,000,441 | | | | | | 4.8 | | | | ||
ROCC’s 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
CR Financial Holdings, Inc.(10)
|
| | | | 2,068,252 | | | | | | 19.1 | | | | | | 2,068,252 | | | | | | 2.8 | | | | | | 2,068,252 | | | | | | 3.3 | | | | ||
Polar Asset Management Partners Inc.(11)
|
| | | | 750,000 | | | | | | 5.1 | | | | | | 750,000 | | | | | | 1.0 | | | | | | 750,000 | | | | | | 1.2 | | | | ||
Castle Creek Arbitrage, LLC(12)
|
| | | | 849,501 | | | | | | 5.8 | | | | | | 849,501 | | | | | | 1.2 | | | | | | 849,501 | | | | | | 1.4 | | | | ||
683 Capital Management, LLC(13)
|
| | | | 936,624 | | | | | | 6.4 | | | | | | 936,624 | | | | | | 1.3 | | | | | | 936,624 | | | | | | 1.5 | | | | | |
Directors and Executive Officers of the
Combined Company: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Golnar Khosrowshahi(14)
|
| | | | — | | | | | | — | | | | | | 344,509 | | | | | | * | | | | | | 344,509 | | | | | | * | | | | ||
Rell Lafargue(14)
|
| | | | — | | | | | | — | | | | | | 344,509 | | | | | | * | | | | | | 344,509 | | | | | | * | | | | ||
Jim Heindlmeyer(14)
|
| | | | — | | | | | | — | | | | | | 55,121 | | | | | | * | | | | | | 55,121 | | | | | | * | | | | ||
Stephen M. Cook(15)
|
| | | | — | | | | | | — | | | | | | 960,699 | | | | | | 1.3 | | | | | | 960,699 | | | | | | 1.5 | | | | ||
Ezra S. Field
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Neil de Gelder
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Jennifer G. Koss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Adam Rothstein(9)
|
| | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | | | 113,189 | | | | | | * | | | | ||
Ryan P. Taylor(16)
|
| | | | — | | | | | | — | | | | | | 13,268,949 | | | | | | 18.1 | | | | | | 13,268,949 | | | | | | 21.2 | | | | ||
All Directors and Executive Officers of
the Combined Company as a Group (8 Individuals) |
| | | | | | | | | | | | | | | | 15,086,976 | | | | | | 20.6 | | | | | | 15,086,976 | | | | | | 24.1 | | | | ||
5% Stockholders of the Combined Company:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Wesbild Inc.(17)
|
| | | | — | | | | | | — | | | | | | 27,554,085 | | | | | | 37.6 | | | | | | 27,554,085 | | | | | | 44.0 | | | | ||
ER Reservoir LLC(18)
|
| | | | — | | | | | | — | | | | | | 13,268,949 | | | | | | 18.1 | | | | | | 13,268,949 | | | | | | 21.2 | | | |
| | |
Page
|
| |||
Roth CH Acquisition II Co. Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-21 | | | |
| | | | F-22 | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
Reservoir Holdings, Inc. and Subsidiaries Audited Consolidated Financial Statements | | | | | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-43 | | | |
| | | | F-44 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(unaudited)
|
| |
(as Revised)
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 549,040 | | | | | $ | 696,567 | | |
Prepaid expenses and other current assets
|
| | | | 380,555 | | | | | | 395,887 | | |
Total Current Assets
|
| | | | 929,595 | | | | | | 1,092,454 | | |
Cash and marketable securities held in Trust Account
|
| | | | 115,012,821 | | | | | | 115,006,613 | | |
TOTAL ASSETS
|
| | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 125,034 | | | | | $ | 83,654 | | |
Total current liabilities
|
| | | | 125,034 | | | | | | 83,654 | | |
Warrant liabilities
|
| | | | 178,750 | | | | | | 129,250 | | |
Total Liabilities
|
| | | | 303,784 | | | | | | 212,904 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Common stock subject to possible redemption; 11,063,863 and 11,088,616 shares at redemption value at March 31, 2021 and December 31, 2020, respectively
|
| | | | 110,638,630 | | | | | | 110,886,160 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,586,137
and 3,561,384 shares issued and outstanding (excluding 11,063,863 and 11,088,616 shares subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively |
| | | | 359 | | | | | | 357 | | |
Additional paid-in capital
|
| | | | 5,370,137 | | | | | | 5,122,609 | | |
Accumulated deficit
|
| | | | (370,494) | | | | | | (122,963) | | |
Total Stockholders’ Equity
|
| | | | 5,000,002 | | | | | | 5,000,003 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 115,942,416 | | | | | $ | 116,099,067 | | |
| | |
Three Months
Ended March 31, 2021 |
| |
Three Months
Ended March 31, 2020 |
| ||||||
Operating and formation costs
|
| | | $ | 204,239 | | | | | $ | 85 | | |
Loss from operations
|
| | | | (204,239) | | | | | | (85) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 6,208 | | | | | | — | | |
Change in fair value of warrant liabilities
|
| | | | (49,500) | | | | | | | | |
Other expense, net
|
| | | | (43,292) | | | | | | — | | |
Loss before income taxes
|
| | | | (247,531) | | | | | | (85) | | |
Net Loss
|
| | | $ | (247,531) | | | | | $ | (85) | | |
Basic and diluted weighted average shares outstanding, Common stock subject
to possible redemption |
| | | | 11,088,616 | | | | | | — | | |
Basic and diluted net loss per share, Common stock subject to possible redemption
|
| | |
$
|
0.00
|
| | | |
$
|
0.00
|
| |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 3,561,384 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.07) | | | | | $ | (0.00) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2021
|
| | | | 3,561,384 | | | | | $ | 357 | | | | | $ | 5,122,609 | | | | | $ | (122,963) | | | | | $ | 5,000,003 | | |
Common stock subject to possible redemption
|
| | | | 24,753 | | | | | | 2 | | | | | | 247,528 | | | | | | — | | | | | | 247,530 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (247,531) | | | | | | (247,531) | | |
Balance – March 31, 2021
|
| | | | 3,586,137 | | | | | $ | 359 | | | | | $ | 5,370,137 | | | | | $ | (370.494) | | | | | $ | 5,000,002 | | |
| | |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,225) | | | | | $ | 23,775 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (85) | | | | | | (85) | | |
Balance – March 31, 2020
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,310) | | | | | $ | 23,690 | | |
| | |
Three Months
Ended March 31, 2021 |
| |
Three Months
Ended March 31, 2020 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (247,531) | | | | | $ | (85) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (6,208) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | — | | | | | | — | | |
Change in fair value of warrant liabilities
|
| | | | 49,500 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 15,332 | | | | | | — | | |
Accrued expenses
|
| | | | 41,380 | | | | | | (225) | | |
Net cash used in operating activities
|
| | | | (147,527) | | | | | | (310) | | |
Net Change in Cash
|
| | | | (147,527) | | | | | | (310) | | |
Cash – Beginning of period
|
| | | | 696,567 | | | | | | 25,000 | | |
Cash – End of period
|
| | | $ | 549,040 | | | | | $ | 24,690 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Change in value of common stock subject to possible redemption
|
| | | $ | (247,530) | | | | | $ | — | | |
| | |
Three Months
Ended March 31, 2021 |
| |
Three Months
Ended March 31, 2020 |
| ||||||
Common stock subject to possible redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Common stock subject to possible redemption
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | $ | 5,973 | | | | | $ | — | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | — | | | | | | — | | |
Less: interest available to be withdrawn for payment of taxes
|
| | | | (5,973) | | | | | | — | | |
Net income
|
| | | $ | — | | | | | $ | — | | |
Denominator: Weighted Average Common stock subject to possible redemption
|
| | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject
to possible redemption |
| | | | 11,088,616 | | | | |
|
—
|
| |
Basic and diluted net income per share, Common stock subject to possible redemption
|
| | | $ | 0.00 | | | | |
$
|
—
|
| |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net Loss minus Net Earnings | | | | | | | | | | | | | |
Net loss
|
| | | $ | (247,531) | | | | | $ | (85) | | |
Net income allocable to Common stock subject to possible redemption
|
| | | | — | | | | | | — | | |
Non-Redeemable Net Loss
|
| | |
$
|
(247,531)
|
| | | | $ | (85) | | |
Denominator: Weighted Average Non-redeemable common stock
|
| | | | — | | | | | | — | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 3,561,384 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.07) | | | | | $ | (0.00) | | |
Description
|
| |
Level
|
| |
March 31,
2021 |
| |
December 31,
2020 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 115,012,821 | | | | | $ | 115,006,613 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Warrant liabilities – Private Placement Warrants
|
| | | | 3 | | | | | $ | 178,750 | | | | | $ | 129,250 | | |
| | |
At
December 31, 2020 |
| |
As of
March 31, 2021 |
| ||||||
Stock price
|
| | | $ | 9.54 | | | | | $ | 9.91 | | |
Strike price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | |
Volatility
|
| | | | 17.5% | | | | | | 19.1% | | |
Risk-free rate
|
| | | | 0.41% | | | | | | 0.94% | | |
Probability of Business Combination occurring
|
| | | | 75% | | | | | | 75% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
Fair value of warrants
|
| | | $ | 0.94 | | | | | $ | 1.30 | | |
| | |
Warrant
Liabilities |
| |||
Fair value as of December 31, 2020
|
| | | $ | 129,250 | | |
Change in valuation inputs or other assumptions
|
| | | | 49,500 | | |
Fair value as of March 31, 2021
|
| | | | 178,750 | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As
Revised |
| |||||||||
Balance sheet as of December 15, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities
|
| | | $ | — | | | | | $ | 111,375 | | | | | $ | 111,375 | | |
Common Stock Subject to Possible Redemption
|
| | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Common Stock
|
| | | | 355 | | | | | | 1 | | | | | | 356 | | |
Additional Paid-in Capital
|
| | | | 5,002,148 | | | | | | 477 | | | | | | 5,002,625 | | |
Accumulated Deficit
|
| | | | (2,500) | | | | | | (478) | | | | | | (2,978) | | |
Balance sheet as of December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities
|
| | | $ | — | | | | | $ | 129,250 | | | | | $ | 129,250 | | |
Common Stock Subject to Possible Redemption
|
| | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Common Stock
|
| | | | 355 | | | | | | 2 | | | | | | 357 | | |
Additional Paid-in Capital
|
| | | | 5,104,258 | | | | | | 18,351 | | | | | | 5,122,609 | | |
Accumulated Deficit
|
| | | | (104,610) | | | | | | (18,353) | | | | | | (122,963) | | |
Year ended December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liabilities
|
| | | $ | — | | | | | $ | (17,875) | | | | | $ | (17,875) | | |
Initial public offering costs allocated to warrant liabilities
|
| | | | — | | | | | | (478) | | | | | | (478) | | |
Net loss
|
| | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
Cash Flow Statement for the Year ended December 31, 2020 (audited)
|
| | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (103,385) | | | | | $ | (18,353) | | | | | $ | (121,738) | | |
Change in fair value of warrant liabilities
|
| | | | — | | | | | | 17,875 | | | | | | 17,875 | | |
Initial public offering costs allocated to warrant liabilities
|
| | | | — | | | | | | 478 | | | | | | 478 | | |
Initial classification of warrant liabilities
|
| | | | — | | | | | | 111,375 | | | | | | 111,375 | | |
Initial classification of common stock subject to possible redemption
|
| | | | 111,117,520 | | | | | | (111,375) | | | | | | 111,006,145 | | |
Change in value of common stock subject to possible redemption
|
| | | | (102,110) | | | | | | (17,875) | | | | | | (119,985) | | |
Statement of Changes in Stockholders’ Equity for the Year ended December 31, 2020 (audited)
|
| | | | | | | | | | | | | | | | | | |
Sale of 275,000 private units
|
| | | $ | 2,750,000 | | | | | $ | (111,375) | | | | | $ | 2,638,625 | | |
Common stock Subject to Possible Redemption
|
| | | | 111,015,410 | | | | | | (129,250) | | | | | | 110,886,160 | | |
Net Loss
|
| | | | (103,385) | | | | | | (18,353) | | | | | | (121,738) | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 696,567 | | | | | $ | 25,000 | | |
Prepaid expenses
|
| | | | 395,887 | | | | | | — | | |
Total Current Assets
|
| | | | 1,092,454 | | | | | | 25,000 | | |
Cash and marketable securities held in Trust Account
|
| | | | 115,006,613 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 116,099,067 | | | | | $ | 25,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 83,654 | | | | | $ | 1,225 | | |
TOTAL LIABILITIES
|
| | | | 83,654 | | | | | | 1,225 | | |
Commitments and Contingencies (see Note 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption 11,101,541 shares at redemption value
|
| | | | 111,015,410 | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,548,459 and 2,875,000 shares issued and outstanding (excluding 11,101,541 shares subject to possible redemption) at December 31, 2020 and 2019, respectively
|
| | | | 355 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | 5,104,258 | | | | | | 24,712 | | |
Accumulated deficit
|
| | | | (104,610) | | | | | | (1,225) | | |
Total Stockholders’ Equity
|
| | | | 5,000,003 | | | | | | 23,775 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 116,099,067 | | | | | $ | 25,000 | | |
| | |
Year Ended
December 31, 2020 |
| |
For the Period from
February 13, 2019 (inception) through December 31, 2019 |
| ||||||
Formation and operational costs
|
| | | $ | 109,998 | | | | | $ | 1,225 | | |
Loss from operations
|
| | | | (109,998) | | | | | | (1,225) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 5,785 | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | 828 | | | | | | — | | |
Other income
|
| | | | 6,613 | | | | | | — | | |
Net loss
|
| | | $ | (103,385) | | | | | $ | (1,225) | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption
|
| | | | 11,111,752 | | | | | | — | | |
Basic and diluted net loss per share, Common stock subject to possible redemption
|
| | | $ | 0.00 | | | | | $ | — | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 2,545,512 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.04) | | | | | $ | (0.00) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Deficit |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – February 13, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock to Sponsor
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,225) | | | | | | (1,225) | | |
Balance – December 31, 2019
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | (1,225) | | | | | | 23,775 | | |
Sale of 11,500,000 Units, net of underwriting discount and offering expenses
|
| | | | 11,500,000 | | | | | | 1,150 | | | | | | 113,343,873 | | | | | | — | | | | | | 113,345,023 | | |
Sale of 275,000 Private Units
|
| | | | 275,000 | | | | | | 28 | | | | | | 2,749,972 | | | | | | — | | | | | | 2,750,000 | | |
Common stock subject to possible redemption
|
| | | | (11,101,541) | | | | | | (1,111) | | | | | | (111,014,299) | | | | | | — | | | | | | (111,015,410) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (103,385) | | | | | | (103,385) | | |
Balance – December 31, 2020
|
| | | | 3,548,459 | | | | | $ | 355 | | | | | $ | 5,104,258 | | | | | $ | (104,610) | | | | | $ | 5,000,003 | | |
| | |
Year Ended
December 31, 2020 |
| |
For the Period from
February 13, 2019 (inception) through December 31, 2019 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (103,385) | | | | | $ | (1,225) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (5,785) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | (828) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | (395,887) | | | | | | — | | |
Accrued expenses
|
| | | | 82,429 | | | | | | 1,225 | | |
Net cash used in operating activities
|
| | | | (423,456) | | | | | | — | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | (115,000,000) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (115,000,000) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of common stock to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 113,850,000 | | | | | | — | | |
Proceeds from sale of Private Units
|
| | | | 2,750,000 | | | | | | — | | |
Proceeds from promissory note – related party
|
| | | | 200,000 | | | | | | — | | |
Repayment of promissory note – related party
|
| | | | (200,000) | | | | | | — | | |
Payment of offering costs
|
| | | | (504,977) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 116,095,023 | | | | | | 25,000 | | |
Net Change in Cash
|
| | | | 671,567 | | | | | | 25,000 | | |
Cash – Beginning of period
|
| | | | 25,000 | | | | | | — | | |
Cash – End of period
|
| | | $ | 696,567 | | | | | $ | 25,000 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 111,117,520 | | | | | $ | — | | |
Change in value of common stock subject to possible redemption
|
| | | $ | (102,110) | | | | | $ | — | | |
| | |
Year Ended
December 31, 2020 |
| |
For the Period from
February 13, 2019 (inception) through December 31, 2019 |
| ||||||
Common stock subject to possible redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Common stock subject to possible redemption
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | $ | 5,785 | | | | | $ | — | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | 828 | | | | | | — | | |
Less: interest available to be withdrawn for payment of taxes
|
| | | | (6,613) | | | | | | — | | |
Net income
|
| | | $ | — | | | | | $ | — | | |
Denominator: Weighted Average Common stock subject to possible redemption
|
| | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption
|
| | |
|
11,111,752
|
| | | |
|
—
|
| |
Basic and diluted net income per share, Common stock subject to possible
redemption |
| | |
$
|
0.00
|
| | | |
$
|
—
|
| |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net Loss minus Net Earnings | | | | | | | | | | | | | |
Net loss
|
| | | $ | (103,385) | | | | | $ | (1,225) | | |
Net income allocable to Common stock subject to possible redemption
|
| | | | — | | | | | | — | | |
Non-Redeemable Net Loss
|
| | | $ | (103,385) | | | | | $ | (1,225) | | |
Denominator: Weighted Average Non-redeemable common stock | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | |
|
2,545,512
|
| | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.04) | | | | | $ | (0.00) | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | $ | 17,142 | | | | | $ | 257 | | |
Unrealized gain on marketable securities
|
| | | | (1,389) | | | | | | — | | |
Startup and organizational costs
|
| | | | 6,215 | | | | | | — | | |
Total deferred tax assets
|
| | | | 21,968 | | | | | | 257 | | |
Valuation Allowance
|
| | | | (21,968) | | | | | | (257) | | |
Deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Federal | | | | | | | | | | | | | |
Current
|
| | | $ | — | | | | | $ | — | | |
Deferred
|
| | | | (21,711) | | | | | | (257) | | |
State and Local | | | | | | | | | | | | | |
Current
|
| | | | — | | | | | | — | | |
Deferred
|
| | | | — | | | | | | — | | |
Change in valuation allowance
|
| | | | 21,711 | | | | | | 257 | | |
Income tax provision
|
| | | $ | — | | | | | $ | — | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit
|
| | | | 0.0% | | | | | | 0.0% | | |
Meals and entertainment
|
| | | | 0.0% | | | | | | 0.0% | | |
Valuation allowance
|
| | | | (21.0) | | | | | | (21.0) | | |
Income tax provision
|
| | | | 0.0% | | | | | | 0.0% | | |
Description
|
| |
Level
|
| |
December 31,
2020 |
| ||||||
Assets: | | | | | | | | | | | | | |
Cash and marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 115,006,613 | | |
| | |
March 31,
2021 |
| |
March 31,
2020 |
| ||||||
| | |
$
|
| |
$
|
| ||||||
Revenues
|
| | | | 81,777,789 | | | | | | 63,238,672 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 32,991,979 | | | | | | 27,305,489 | | |
Amortization and depreciation
|
| | | | 14,128,604 | | | | | | 8,423,197 | | |
Administration expenses
|
| | | | 14,986,085 | | | | | | 12,032,673 | | |
Total costs and expenses
|
| | | | 62,106,668 | | | | | | 47,761,359 | | |
Operating income
|
| | | | 19,671,121 | | | | | | 15,477,313 | | |
Interest expense
|
| | | | (8,972,100) | | | | | | (6,463,381) | | |
(Loss) gain on foreign exchange
|
| | | | (910,799) | | | | | | 30,700 | | |
Gain (loss) on fair value of swaps
|
| | | | 2,988,322 | | | | | | (5,555,702) | | |
Interest and other income
|
| | | | 13,243 | | | | | | 76,894 | | |
Gain on retirement of RMM Issuer debt
|
| | | | — | | | | | | 10,644,084 | | |
Income before income taxes
|
| | | | 12,789,787 | | | | | | 14,209,908 | | |
Income tax expense
|
| | | | 2,454,153 | | | | | | 4,199,141 | | |
Net income
|
| | | | 10,335,634 | | | | | | 10,010,767 | | |
Net (income) loss attributable to noncontrolling interests
|
| | | | (46,673) | | | | | | 47,027 | | |
Net income attributable to Reservoir Holdings Inc.
|
| | | | 10,288,961 | | | | | | 10,057,794 | | |
Earnings per common share (Note 14): | | | | | | | | | | | | | |
Basic
|
| | | $ | 45.29 | | | | | $ | 51.38 | | |
Diluted
|
| | | $ | 45.29 | | | | | $ | 51.38 | | |
Weighted average common shares outstanding (Note 14): | | | | | | | | | | | | | |
Basic
|
| | | | 144,698 | | | | | | 128,875 | | |
Diluted
|
| | | | 227,198 | | | | | | 195,740 | | |
| | |
March 31, 2021
|
| |
March 31, 2020
|
| ||||||
| | |
$
|
| |
$
|
| ||||||
Net income
|
| | | | 10,335,634 | | | | | | 10,010,767 | | |
Other comprehensive loss: | | | | | | | | | | | | | |
Translation adjustments
|
| | | | 6,481,973 | | | | | | (1,981,753) | | |
Total comprehensive income
|
| | | | 16,817,607 | | | | | | 8,029,014 | | |
Comprehensive (income) loss attributable to noncontrolling interests
|
| | | | (46,673) | | | | | | 47,027 | | |
Total comprehensive income attributable to Reservoir Holdings, Inc.
|
| | | | 16,770,934 | | | | | | 8,076,041 | | |
| | |
March 31, 2021
|
| |
March 31, 2020
|
| ||||||
| | |
$
|
| |
$
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | 9,209,920 | | | | | | 58,240,123 | | |
Accounts receivable
|
| | | | 15,813,384 | | | | | | 9,745,206 | | |
Amounts due from related parties (Note 11)
|
| | | | — | | | | | | 5,671 | | |
Current portion of royalty advances
|
| | | | 12,840,855 | | | | | | 13,845,419 | | |
Inventory and prepaid expenses
|
| | | | 1,406,379 | | | | | | 431,029 | | |
Total current assets
|
| | | | 39,270,538 | | | | | | 82,267,448 | | |
Intangible assets, net
|
| | | | 393,238,010 | | | | | | 285,109,108 | | |
Investment in equity affiliates
|
| | | | 1,591,179 | | | | | | 1,498,399 | | |
Royalty advances, net of current portion
|
| | | | 28,741,225 | | | | | | 26,418,020 | | |
Property, plant and equipment, net
|
| | | | 321,766 | | | | | | 602,976 | | |
Other assets
|
| | | | 781,735 | | | | | | 695,252 | | |
Total assets
|
| | | | 463,944,453 | | | | | | 396,591,203 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | | 3,316,768 | | | | | | 876,144 | | |
Royalties payable
|
| | | | 14,656,566 | | | | | | 12,169,249 | | |
Accrued payroll
|
| | | | 1,634,852 | | | | | | 1,532,047 | | |
Deferred revenue
|
| | | | 1,337,987 | | | | | | 473,022 | | |
Other current liabilities
|
| | | | 2,615,488 | | | | | | 7,089,780 | | |
Amounts due to related parties (Note 11)
|
| | | | 290,172 | | | | | | — | | |
Current portion of loans and secured notes payable
|
| | | | 1,000,000 | | | | | | 1,000,000 | | |
Income taxes payable
|
| | | | 533,495 | | | | | | 297,112 | | |
Total current liabilities
|
| | | | 25,385,328 | | | | | | 23,437,354 | | |
Loans and secured notes payable
|
| | | | 211,531,875 | | | | | | 171,785,432 | | |
Deferred income taxes
|
| | | | 19,735,537 | | | | | | 16,415,239 | | |
Fair value of swaps
|
| | | | 4,566,537 | | | | | | 7,554,859 | | |
Other liabilities
|
| | | | 6,739,971 | | | | | | 6,306,430 | | |
Total liabilities
|
| | | | 267,959,248 | | | | | | 225,499,314 | | |
Contingencies and commitments (Note 16) | | | | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.00001 par value 500,000 shares authorized; 82,500 shares issued and outstanding at March 31, 2021 and 2020
|
| | | | 81,632,500 | | | | | | 81,632,500 | | |
Common stock, $0.00001 par value; 1,000,000 shares authorized, 145,560 shares issued and outstanding at March 31, 2021; and 140,227 shares issued and outstanding at March 31, 2020
|
| | | | 1 | | | | | | 1 | | |
Additional paid-in capital
|
| | | | 110,499,153 | | | | | | 102,423,444 | | |
Retained earnings (accumulated deficit)
|
| | | | 751,496 | | | | | | (9,537,465) | | |
Accumulated other comprehensive income (loss)
|
| | | | 2,096,358 | | | | | | (4,385,615) | | |
Total Reservoir Holdings Inc. shareholders’ equity
|
| | | | 194,979,508 | | | | | | 170,132,865 | | |
Noncontrolling interest
|
| | | | 1,005,697 | | | | | | 959,024 | | |
Total shareholders’ equity
|
| | | | 195,985,205 | | | | | | 171,091,889 | | |
Total liabilities and shareholders’ equity
|
| | | | 463,944,453 | | | | | | 396,591,203 | | |
| | |
Preferred Stock
|
| |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Retained
earnings (Accumulated deficit) |
| |
Accumulated
other comprehensive income (loss) |
| |
Noncontrolling
interest |
| |
Shareholders’
equity |
| |||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||
| | | | | | |
$
|
| | | | | | | |
$
|
| |
$
|
| |
$
|
| |
$
|
| |
$
|
| |
$
|
| |||||||||||||||||||||||
Balance, March 31, 2019
|
| | | | — | | | | | | — | | | | | | 125,227 | | | | | | 1 | | | | | | 104,250,000 | | | | | | (19,595,259) | | | | | | (2,403,862) | | | | | | — | | | | | | 82,250,880 | | |
Common share dividend
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,875,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,875,000) | | |
Issuance of preferred shares
|
| | | | 82,500 | | | | | | 81,632,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 81,632,500 | | |
Issuance of common shares
|
| | | | — | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 14,957,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,957,500 | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,944 | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,944 | | |
Net income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,057,794 | | | | | | — | | | | | | (47,027) | | | | | | 10,010,767 | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,981,753) | | | | | | — | | | | | | (1,981,753) | | |
Acquisition of noncontrolling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,006,051 | | | | | | 1,006,051 | | |
Balance, March 31, 2020
|
| | | | 82,500 | | | | | | 81,632,500 | | | | | | 140,227 | | | | | | 1 | | | | | | 102,423,444 | | | | | | (9,537,465) | | | | | | (4,385,615) | | | | | | 959,024 | | | | | | 171,091,889 | | |
Issuance of common shares
|
| | | | — | | | | | | — | | | | | | 5,333 | | | | | | — | | | | | | 7,973,009 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,973,009 | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 102,700 | | | | | | — | | | | | | — | | | | | | — | | | | | | 102,700 | | |
Net income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,288,961 | | | | | | — | | | | | | 46,673 | | | | | | 10,335,634 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,481,973 | | | | | | — | | | | | | 6,481,973 | | |
Balance, March 31, 2021
|
| | | | 82,500 | | | | | | 81,632,500 | | | | | | 145,560 | | | | | | 1 | | | | | | 110,499,153 | | | | | | 751,496 | | | | | | 2,096,358 | | | | | | 1,005,697 | | | | | | 195,985,205 | | |
| | |
March 31, 2021
|
| |
March 31, 2020
|
| ||||||
| | |
$
|
| |
$
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income
|
| | | | 10,335,634 | | | | | | 10,010,767 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Amortization of intangible assets
|
| | | | 13,906,199 | | | | | | 8,250,305 | | |
Depreciation of property, plant and equipment
|
| | | | 222,405 | | | | | | 172,892 | | |
Share-based compensation
|
| | | | 102,700 | | | | | | 90,944 | | |
Gain on retirement of RMM Issuer debt
|
| | | | — | | | | | | (10,644,084) | | |
Non-cash interest charges
|
| | | | 795,212 | | | | | | 674,331 | | |
(Gain) loss on fair value of derivative instruments
|
| | | | (2,988,322) | | | | | | 5,555,703 | | |
Share of earnings of equity affiliates, net of tax
|
| | | | (7,089) | | | | | | 4,407 | | |
Deferred income tax
|
| | | | 2,080,622 | | | | | | 3,651,234 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (6,068,178) | | | | | | (532,805) | | |
Inventory and prepaid expenses
|
| | | | (975,350) | | | | | | (203,929) | | |
Royalty advances
|
| | | | (1,318,641) | | | | | | (6,912,500) | | |
Other assets
|
| | | | 138,706 | | | | | | (103,595) | | |
Accounts payable and accrued expenses
|
| | | | (213,335) | | | | | | 1,684,961 | | |
Income tax payable
|
| | | | 236,383 | | | | | | 182,911 | | |
Net cash provided by operating activities
|
| | | | 16,246,946 | | | | | | 11,881,542 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of music catalogs
|
| | | | (119,966,806) | | | | | | (106,841,628) | | |
Business combination and investment in equity affiliate
|
| | | | (13,366) | | | | | | (380,417) | | |
Increase (decrease) in deferred music composition acquisition costs
|
| | | | (86,483) | | | | | | (54,386) | | |
Purchase of property, plant and equipment
|
| | | | (79,901) | | | | | | (529,950) | | |
Net cash used for investing activities
|
| | | | (120,146,556) | | | | | | (107,806,381) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Common stock dividend paid
|
| | | | — | | | | | | (16,875,000) | | |
Issuance of preferred shares, net of issuance costs
|
| | | | — | | | | | | 81,632,500 | | |
Issuance of common shares, net of issuance costs
|
| | | | 7,973,009 | | | | | | 14,957,500 | | |
Repayment of secured notes
|
| | | | — | | | | | | (1,625,000) | | |
Proceeds from secured line of credit
|
| | | | 40,600,000 | | | | | | 20,000,000 | | |
Repayment of secured line of credit
|
| | | | — | | | | | | (7,076,870) | | |
Proceeds from secured loans
|
| | | | — | | | | | | 236,490,849 | | |
Repayments of secured loans
|
| | | | (1,000,000) | | | | | | (178,247,825) | | |
Deferred financing costs paid
|
| | | | (648,769) | | | | | | (2,149,017) | | |
Repayments of related party loans
|
| | | | — | | | | | | (77,496) | | |
Draw on related party loans
|
| | | | 295,843 | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 47,220,083 | | | | | | 147,029,641 | | |
Foreign exchange impact on cash
|
| | | | 7,649,324 | | | | | | (1,981,753) | | |
(Decrease) increase in cash, cash equivalents and restricted cash
|
| | | | (49,030,203) | | | | | | 49,123,049 | | |
Cash, cash equivalents and restricted cash beginning of year
|
| | | | 58,240,123 | | | | | | 9,117,074 | | |
Cash and cash equivalents end of year
|
| | | | 9,209,920 | | | | | | 58,240,123 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Revenue by Type | | | | | | | | | | | | | |
Performance
|
| | | | 16,514,790 | | | | | | 13,656,061 | | |
Digital
|
| | | | 35,028,049 | | | | | | 28,798,051 | | |
Mechanical
|
| | | | 3,050,120 | | | | | | 2,472,527 | | |
Synchronization
|
| | | | 9,891,034 | | | | | | 6,891,554 | | |
Other
|
| | | | 2,606,632 | | | | | | 2,124,043 | | |
Total Music Publishing
|
| | | | 67,090,625 | | | | | | 53,942,236 | | |
Digital
|
| | | | 7,603,040 | | | | | | 4,569,106 | | |
Physical
|
| | | | 3,962,596 | | | | | | 1,432,026 | | |
Synchronization
|
| | | | 492,258 | | | | | | 1,384,959 | | |
Neighboring rights
|
| | | | 1,537,087 | | | | | | 1,642,405 | | |
Total Recorded Music
|
| | | | 13,594,981 | | | | | | 9,028,496 | | |
Other revenue
|
| | | | 1,092,183 | | | | | | 267,940 | | |
Total revenues
|
| | | | 81,777,789 | | | | | | 63,238,672 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Revenue by Geographical Location | | | | | | | | | | | | | |
United States Music Publishing
|
| | | | 34,682,505 | | | | | | 30,803,165 | | |
United States Recorded Music
|
| | | | 4,891,800 | | | | | | 3,475,647 | | |
United States other revenue
|
| | | | 1,092,183 | | | | | | 267,940 | | |
Total United States
|
| | | | 40,666,488 | | | | | | 34,546,752 | | |
International Music Publishing
|
| | | | 32,408,121 | | | | | | 23,139,071 | | |
International Recorded Music
|
| | | | 8,703,180 | | | | | | 5,552,849 | | |
Total international
|
| | | | 41,111,301 | | | | | | 28,691,920 | | |
Total revenues
|
| | | | 81,777,789 | | | | | | 63,238,672 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Balance at beginning of period
|
| | | | 473,022 | | | | | | 287,406 | | |
Cash received during period
|
| | | | 6,716,569 | | | | | | 347,407 | | |
Revenue recognized during period
|
| | | | (5,851,604) | | | | | | (161,791) | | |
Balance at end of period
|
| | | | 1,337,987 | | | | | | 473,022 | | |
| | |
March 31,
2021 |
| |
March 31,
2020 |
| ||||||
| | |
$
|
| |
$
|
| ||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | |
Music catalogs (publishing and recorded)
|
| | | | 457,662,303 | | | | | | 335,137,807 | | |
Artist management contracts
|
| | | | 995,464 | | | | | | 925,398 | | |
Gross intangible assets
|
| | | | 458,657,767 | | | | | | 336,063,205 | | |
Accumulated amortization
|
| | | | (65,419,757) | | | | | | (50,954,097) | | |
Intangible assets, net
|
| | | | 393,238,010 | | | | | | 285,109,108 | | |
| | |
$
|
| |||
2022
|
| | | | 14,864,256 | | |
2023
|
| | | | 14,864,256 | | |
2024
|
| | | | 14,864,256 | | |
2025
|
| | | | 14,864,256 | | |
2026
|
| | | | 14,864,256 | | |
Thereafter
|
| | | | 318,916,730 | | |
Total
|
| | | | 393,238,010 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Opening balance
|
| | | | 40,263,439 | | | | | | 33,350,939 | | |
Additions
|
| | | | 14,474,288 | | | | | | 21,130,420 | | |
Recoupments
|
| | | | (13,155,647) | | | | | | (14,217,920) | | |
Closing balance
|
| | | | 41,582,080 | | | | | | 40,263,439 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Secured loan bearing interest at LIBOR plus a spread
|
| | | | 18,500,000 | | | | | | 19,500,000 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Secured line of credit bearing interest at LIBOR plus a spread
|
| | | | 197,090,848 | | | | | | 156,490,848 | | |
Debt issuance costs, net
|
| | | | (3,058,973) | | | | | | (3,205,416) | | |
| | | | | 212,531,875 | | | | | | 172,785,432 | | |
Less: short term portion of Secured loan
|
| | | | 1,000,000 | | | | | | 1,000,000 | | |
| | | | | 211,531,875 | | | | | | 171,785,432 | | |
|
| | |
$
|
| |||
2022
|
| | | | 1,000,000 | | |
2023
|
| | | | 1,000,000 | | |
2024
|
| | | | 213,590,848 | | |
| | | | | 215,590,848 | | |
| | |
$
|
| |||
2023
|
| | | | 5,738,348 | | |
2024
|
| | | | 213,783 | | |
2025
|
| | | | 213,783 | | |
2026 and later
|
| | | | 574,057 | | |
| | | | | 6,739,971 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Domestic
|
| | | | 11,126,090 | | | | | | 12,174,556 | | |
Foreign
|
| | | | 1,663,697 | | | | | | 2,035,352 | | |
Income before income taxes
|
| | | | 12,789,787 | | | | | | 14,209,908 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Current income taxes: | | | | | | | | | | | | | |
U.S. federal
|
| | | | (216,528) | | | | | | 236,057 | | |
State and local
|
| | | | 8,827 | | | | | | 192,141 | | |
Foreign
|
| | | | 581,232 | | | | | | 119,709 | | |
Total current
|
| | | | 373,531 | | | | | | 547,907 | | |
Deferred income taxes: | | | | | | | | | | | | | |
U.S. federal
|
| | | | 2,188,194 | | | | | | 2,775,979 | | |
State and local
|
| | | | 259,182 | | | | | | (114,785) | | |
Foreign
|
| | | | (366,754) | | | | | | 990,040 | | |
Total deferred
|
| | | | 2,080,622 | | | | | | 3,651,234 | | |
Income tax expense
|
| | | | 2,454,153 | | | | | | 4,199,141 | | |
| | |
2021
|
| |
2020
|
| ||||||
Federal income tax statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State and local income taxes, net of federal income tax benefit
|
| | | | 1.7% | | | | | | 1.4% | | |
Foreign subsidiary earnings
|
| | | | 2.1% | | | | | | 0.4% | | |
Return to provision adjustments
|
| | | | (4.9)% | | | | | | (1.5)% | | |
Impact of change in tax rates
|
| | | | 0.3% | | | | | | 8.2% | | |
Other, net
|
| | | | (1.0)% | | | | | | 0.1% | | |
Effective income tax rate
|
| | | | 19.2% | | | | | | 29.6% | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
$
|
| |
$
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | | 785,902 | | | | | | 481,360 | | |
Fair value of swaps
|
| | | | 1,046,459 | | | | | | 1,718,059 | | |
Compensation
|
| | | | 44,375 | | | | | | 20,682 | | |
Charitable contributions
|
| | | | 8,951 | | | | | | — | | |
Unrealized foreign exchange losses
|
| | | | 51,924 | | | | | | — | | |
Total deferred tax assets
|
| | | | 1,937,611 | | | | | | 2,220,101 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Fixed assets and leasehold improvements
|
| | | | (44,393) | | | | | | (72,006) | | |
Intangible assets
|
| | | | (21,628,755) | | | | | | (18,563,334) | | |
Deferred charges
|
| | | | — | | | | | | — | | |
Total deferred tax liabilities
|
| | | | (21,673,148) | | | | | | (18,635,340) | | |
Net deferred tax liabilities
|
| | | | (19,735,537) | | | | | | (16,415,239) | | |
|
Federal
|
| | | $ | 1,795,951 | | | |
No expiration date
|
|
|
New York
|
| | | | 46,903,391 | | | | 2035 – 2040 | |
|
California
|
| | | | 151,988 | | | | 2040 | |
|
Tennessee
|
| | | | 119,951 | | | | 2035 | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Interest paid
|
| | | | 8,176,888 | | | | | | 6,099,653 | | |
Income taxes paid
|
| | | | 131,414 | | | | | | 205,067 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
Due to Wesbild Inc. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment
|
| | | | — | | | | | | — | | |
Due to Wesbild Holdings Ltd., parent company of Wesbild Inc. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment
|
| | | | 83,480 | | | | | | 7,665 | | |
Sub-total
|
| | | | 83,480 | | | | | | 7,665 | | |
Due to (from) DRI Capital Inc., a subsidiary of Wesbild Holdings Ltd. | | | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment
|
| | | | 81,738 | | | | | | (60,444) | | |
Due to Reservoir Media Management (Canada) Inc., a subsidiary of Wesbild
Holdings Ltd. |
| | | ||||||||||
Unsecured, bears no interest, with no specific terms of repayment
|
| | | | 124,954 | | | | | | 47,108 | | |
Sub-total
|
| | | | 206,692 | | | | | | (13,336) | | |
| | | | | 290,172 | | | | | | (5,671) | | |
| | |
Total
Number of Options |
| |
Weighted
Average Exercise Price |
| |
Aggregate
Intrinsic Value |
| |
Weighted
Average Remaining Contractual Term (Years) |
| ||||||||||||
| | | | | | |
$
|
| |
$
|
| | | | | | | ||||||||
Outstanding at April 1, 2020
|
| | | | 7,624 | | | | | | 1,000 | | | | | | | | | | | | | | |
Granted
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Forfeited
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Outstanding at March 31, 2021
|
| | | | 7,624 | | | | | | 1,000 | | | | | | 4,933,306 | | | | | | 8.1 | | |
Exercisable at March 31, 2021
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Vested or expected to vest at March 31, 2021
|
| | | | 7,624 | | | | | | 1,000 | | | | | | 4,933,306 | | | | | | 8.1 | | |
| | |
2021
|
| |
2020
|
| ||||||
Basic earnings per common share | | | | | | | | | | | | | |
Net income attributable to Reservoir Holdings Inc.
|
| | | $ | 10,288,961 | | | | | $ | 10,057,794 | | |
Less: income allocated to participating securities
|
| | | | (3,736,121) | | | | | $ | (3,435,754) | | |
Net income attributable to common shareholders
|
| | | $ | 6,552,840 | | | | | $ | 6,622,040 | | |
Basic weighted average common shares outstanding
|
| | | | 144,698 | | | | | | 128,875 | | |
Basic earnings per common share
|
| | | $ | 45.29 | | | | | $ | 51.38 | | |
Diluted earnings per common share | | | | | | | | | | | | | |
Net income attributable to common shareholders
|
| | | $ | 6,552,840 | | | | | $ | 6,622,040 | | |
Add: income allocated to participating securities
|
| | | | 3,736,121 | | | | | | 3,435,754 | | |
Net income attributable to Reservoir Holdings Inc.
|
| | | $ | 10,288,961 | | | | | $ | 10,057,794 | | |
Basic weighted average common shares outstanding
|
| | | | 144,698 | | | | | | 128,875 | | |
Impact of assumed preferred share conversion
|
| | | | 82,500 | | | | | | 66,865 | | |
Diluted weighted average common shares outstanding
|
| | | | 227,198 | | | | | | 195,740 | | |
Diluted earnings per common share
|
| | | $ | 45.29 | | | | | $ | 51.38 | | |
| | |
$
|
| |||
2022
|
| | | | 817,966 | | |
2023
|
| | | | 586,303 | | |
2024
|
| | | | 248,981 | | |
| | | | | 1,653,250 | | |
For the Fiscal Year Ended March 31, 2021:
|
| |
Music
Publishing |
| |
Recorded
Music |
| |
Other
|
| |
Consolidated
|
| ||||||||||||
| | |
$
|
| |
$
|
| |
$
|
| |
$
|
| ||||||||||||
Total revenue
|
| | | | 67,090,625 | | | | | | 13,594,981 | | | | | | 1,092,183 | | | | | | 81,777,789 | | |
Reconciliation of OIBDA to operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income
|
| | | | 15,074,983 | | | | | | 4,333,644 | | | | | | 262,494 | | | | | | 19,671,121 | | |
Amortization and depreciation
|
| | | | 11,791,568 | | | | | | 2,230,866 | | | | | | 106,170 | | | | | | 14,128,604 | | |
For the Fiscal Year Ended March 31, 2021:
|
| |
Music
Publishing |
| |
Recorded
Music |
| |
Other
|
| |
Consolidated
|
| ||||||||||||
| | |
$
|
| |
$
|
| |
$
|
| |
$
|
| ||||||||||||
OIBDA
|
| | | | 26,866,551 | | | | | | 6,564,510 | | | | | | 368,664 | | | | | | 33,799,725 | | |
|
For the Fiscal Year Ended March 31, 2020:
|
| |
Music
Publishing |
| |
Recorded
Music |
| |
Other
|
| |
Consolidated
|
| ||||||||||||
| | |
$
|
| |
$
|
| |
$
|
| |
$
|
| ||||||||||||
Total revenue
|
| | | | 53,942,236 | | | | | | 9,028,496 | | | | | | 267,940 | | | | | | 63,238,672 | | |
Reconciliation of OIBDA to operating income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income
|
| | | | 13,637,115 | | | | | | 1,708,568 | | | | | | 131,630 | | | | | | 15,477,313 | | |
Amortization and depreciation
|
| | | | 6,653,020 | | | | | | 1,770,177 | | | | | | — | | | | | | 8,423,197 | | |
OIBDA
|
| | | | 20,290,135 | | | | | | 3,478,745 | | | | | | 131,630 | | | | | | 23,900,510 | | |
| | |
2021
|
| |
2020
|
| ||||||
|
$
|
| |
$
|
| ||||||||
United States
|
| | | | 187,861 | | | | | | 339,420 | | |
United Kingdom
|
| | | | 133,905 | | | | | | 263,556 | | |
Total
|
| | | | 321,766 | | | | | | 602,976 | | |
| | |
Page
|
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| | | | A-2 | | | | |||
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| | | | A-3 | | | | |||
| | | | A-3 | | | | |||
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| ANNEXES | | | | | | | | ||||||
| Annex I | | | — | | | Assumed Indebtedness | | | | ||||
|
Annex II
|
| | — | | | Insiders of Acquiror | | | | ||||
| EXHIBITS | | | | | | | | ||||||
| Exhibit A | | | — | | | Form of Acquiror Support Agreement | | | | ||||
| Exhibit B | | | — | | | Form of Registration Rights Agreement | | | | ||||
| Exhibit C | | | — | | | Form of Lockup Agreement | | | | ||||
| Exhibit D | | | — | | | Form of Stockholders Agreement | | | | ||||
| Exhibit E | | | — | | | Form of Subscription Agreements | | | | ||||
| Exhibit F | | | — | | | Form of PIPE Registration Rights Agreement | | | | | | ||
| Exhibit G | | | — | | | Form of Equity Compensation Plan | | | | ||||
| Exhibit H | | | — | | | Form of Acquiror A&R Bylaws | | | | ||||
| Exhibit I | | | — | | | Form of Acquiror A&R Charter | | | | ||||
|
Disclosure Letter
|
| | |
Term
|
| |
Section
|
|
2020 Financials | | | 5.4 | |
Acquiror | | | Preamble | |
Acquiror A&R Bylaws | | | Recitals | |
Acquiror A&R Charter | | | Recitals | |
Acquiror Board | | | 1.5(b) | |
Acquiror Board Recommendation | | | 7.2(f) | |
Acquiror Certifications | | | 4.12(c) | |
Acquiror Change in Recommendation | | | 7.2(f) | |
Acquiror D&O Policy | | | 6.3(b) | |
Acquiror SEC Documents | | | 4.12(a) | |
Term
|
| |
Section
|
|
Acquiror Stockholder Approval | | | 4.26 | |
Acquiror Stockholders’ Meeting | | | 7.2(a) | |
Acquiror Support Agreement | | | Recitals | |
Additional Proposal | | | 7.2(b) | |
Affiliate Transaction | | | 3.21 | |
Agreement | | | Preamble | |
Alternative Proposal | | | 7.1 | |
Amendment Proposal | | | 7.2(b) | |
Antitrust Laws | | | 7.4(b) | |
As-Converted Preferred Stock | | | 2.1(a) | |
Balance Sheet Date | | | 3.7 | |
Benefit Arrangement | | | 3.19(a) | |
Bonds | | | 3.16(a) | |
Certificate of Merger | | | 1.2(a) | |
Certificates | | | 2.2(b) | |
C-H | | | 4.4 | |
Closing | | | 1.2(b) | |
Closing Date | | | 1.2(b) | |
Closing Form 8-K | | | 7.6(b) | |
Closing Legal Impediment | | | 8.1(a) | |
Closing Press Release | | | 7.6(b) | |
Closing Tax Opinion | | | 7.9(d) | |
Closing Tax Representation Letters | | | 7.9(e) | |
Company | | | Preamble | |
Company Board | | | 3.5(c) | |
Company Financial Statements | | | 3.7 | |
Company Preferred Stock Conversion | | | 2.1(a) | |
Computer Systems | | | 3.15(h) | |
D&O Policy | | | 5.6(a) | |
D&O Policy | | | 5.6(a) | |
DGCL | | | Recitals | |
Effect | | | 10.13(a) | |
Effective Time | | | 1.2(a) | |
Election of Directors Proposal | | | 7.2(b) | |
Equity Compensation Plan | | | Recitals | |
Equity Compensation Plan | | | Recitals | |
Equity Compensation Plan Proposal | | | 7.2(b) | |
ERISA | | | 3.19(a) | |
ERISA Affiliate | | | 3.19(d) | |
Exchange Agent | | | 2.2(a) | |
Exchange Fund) | | | 2.2(a) | |
Exchanged Option | | | 2.1(b)(iv) | |
Excluded Shares | | | 2.1(b)(ii) | |
Grant Date | | | 3.5(c) | |
HSR Filing | | | 3.3(a) | |
Insider Letter Agreement | | | 4.24 | |
Intended Tax Treatment | | | Recitals | |
IRS | | | 3.19(c) | |
Key Employees | | | 5.3 | |
Term
|
| |
Section
|
|
Leased Real Properties | | | 3.12(b) | |
Leased Real Property | | | 3.12(b) | |
Letter of Transmittal | | | 2.2(b) | |
Lockup Agreement | | | Recitals | |
Marketing Agreement | | | 4.4 | |
Material Contract | | | 3.22 | |
Merger | | | Recitals | |
Merger Sub | | | Preamble | |
Merger Sub Common Stock | | | 4.5(b) | |
Merger Sub Common Stock | | | 4.5(b) | |
Nasdaq Proposal | | | 7.2(b) | |
Nine Month Financials | | | 5.4 | |
Non-PEO Benefit Arrangements | | | 3.19(a) | |
Offer | | | Recitals | |
Other Filings | | | 7.2(a) | |
Outside Date | | | 9.1(e)(i) | |
Owned Intellectual Property | | | 3.15(a) | |
Parties | | | Preamble | |
Party | | | Preamble | |
PEO Benefit Arrangements | | | 3.19(a) | |
Per Share Merger Consideration | | | 2.1(b)(i) | |
Permitted Interim Acquisition Indebtedness | | | 5.1(iv) | |
Personal Information | | | 3.15(j) | |
PIPE Escrow | | | 7.2(g) | |
PIPE Financing | | | Recitals | |
PIPE Investment Amount | | | 4.19 | |
PIPE Investor | | | 4.19 | |
Policies | | | 3.16(a) | |
Post-Closing Directors | | | 1.5(b) | |
Pre-Closing Period | | | 5.1 | |
Pre-Closing Period | | | 5.1 | |
Privacy Policy | | | 3.15(i) | |
Real Property Leases | | | 3.12(b) | |
Registration Rights Agreement | | | Recitals | |
Required Financials | | | 5.4 | |
Required Financial Statements | | | 5.4 | |
Reservoir Media | | | 3.7 | |
Roth | | | 4.4 | |
SEC Tax Opinion | | | 7.9(d) | |
SEC Tax Representation Letters | | | 7.9(e) | |
Sponsor | | | Recitals | |
Stockholders Agreement | | | Recitals | |
Subscription Agreements | | | Recitals | |
Surviving Corporation | | | 1.1 | |
Surviving Corporation | | | Recitals | |
Tax Opinions | | | 7.9(d) | |
Tax Representation Letters | | | 7.9(e) | |
Transaction Proposal | | | 7.2(b) | |
Trust Account | | | 4.8 | |
Term
|
| |
Section
|
|
Trust Agreement | | | 4.8 | |
Trustee | | | 4.8 | |
Voting Matters | | | 7.2(b) | |
Works | | | 3.15(f) | |
Written Consent | | | Recitals | |
| | | | ROTH CH ACQUISITION II CO. | | ||||||
| | | | By: | | | /s/ Byron Roth | | |||
| | | | | | | Name: | | | Byron Roth | |
| | | | | | | Title: | | | Chairman & CEO | |
| | | | ROTH CH II MERGER SUB CORP. | | ||||||
| | | | By: | | | /s/ Byron Roth | | |||
| | | | | | | Name: | | | Byron Roth | |
| | | | | | | Title: | | | Chairman & CEO | |
| | | | RESERVOIR HOLDINGS, INC. | | ||||||
| | | | By: | | | /s/ Golnar Khosrowshahi | | |||
| | | | | | | Name: | | | Golnar Khosrowshahi | |
| | | | | | | Title: | | | Chief Executive Officer | |
| | | | [•] | | |||
| | | | By: | | | | |
| | | | Name: | | | | |
| | | | Title: | | | | |
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