# EDGAR Filing Document

**Accession Number:** 0000066496
**File Stem:** 0001193125-25-180465
**Filing Date:** 2025-8
**Character Count:** 52305
**Document Hash:** e3a99368aea0722ded90143e3883bacd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-180465.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001193125-25-180465

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 31

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MILLS MUSIC TRUST
- **CENTRAL INDEX KEY:** 0000066496
- **STANDARD INDUSTRIAL CLASSIFICATION:** PATENT OWNERS & LESSORS [6794]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 136183792
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-02123
- **FILM NUMBER:** 251215156

**BUSINESS ADDRESS:**
- **STREET 1:** 1001 AVENUE OF THE AMERICAS
- **STREET 2:** 2ND FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018
- **BUSINESS PHONE:** 2128685781

**MAIL ADDRESS:**
- **STREET 1:** 1001 AVENUE OF THE AMERICAS
- **STREET 2:** 2ND FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018

?xml version='1.0' encoding='ASCII'? 10-Q

##### [**Table of Contents**](#toc)

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

### FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

#### For the quarterly period ended June 30, 2025

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

#### For the transition period from to

#### Commission file Number — 000-02123

## MILLS MUSIC TRUST

#### (Exact name of registrant as specified in its charter)
New York 13-6183792 <br> (State or other jurisdiction ofincorporation or organization) (I.R.S. EmployerIdentification No.)

#### C/O HSBC Bank USA, N.A. Corporate Trust Issuer Services,

#### 66 Hudson Boulevard East, New York, NY 10001

#### (Address of principal executive offices and ZIP Code)
(212) 525-1349

#### (Registrant's telephone number, including area code)

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

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| N/A | N/A | N/A |

---

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

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

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

---

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

---

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

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

The number of the Registrant's Trust Units outstanding as of June 30, 2025 was 277,712.

------

##### [**Table of Contents**](#toc)

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  [PART I — FINANCIAL STATEMENTS](#fin943441_1) | 1 |
|  [ITEM 1. FINANCIAL STATEMENTS](#fin943441_2) | 1 |
|  [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#fin943441_3) | 6 |
|  [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#fin943441_4) | 9 |
|  [ITEM 4. CONTROLS AND PROCEDURES](#fin943441_5) | 9 |
|  [PART II — OTHER INFORMATION](#fin943441_6) | 10 |
|  [ITEM 1. LEGAL PROCEEDINGS](#fin943441_7) | 10 |
|  [ITEM 1A. RISK FACTORS](#fin943441_8) | 10 |
|  [ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS](#fin943441_9) | 10 |
|  [ITEM 3. DEFAULT UPON SENIOR SECURITIES](#fin943441_10) | 10 |
|  [ITEM 4. MINE SAFETY DISCLOSURES](#fin943441_11) | 10 |
|  [ITEM 5. OTHER INFORMATION](#fin943441_12) | 10 |
|  [ITEM 6. EXHIBITS](#fin943441_13) | 11 |
|  [SIGNATURES](#fin943441_14) | 12 |

---

------

##### [**Table of Contents**](#toc)
0.49700.73040.9390 #### PART I — FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS

MILLS MUSIC TRUST

STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS

THREE AND SIX MONTHS ENDED

JUNE 30, 2025 AND JUNE 30, 2024

(UNAUDITED)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months<br> Ended June 30 | Three Months<br> Ended June 30 | Six Months<br> Ended June 30 | Six Months<br> Ended June 30 |
|  | 2025 | 2024 | 2025 | 2024 |
| Receipts from EMI | $202850 | $248922 | $463609 | $537349 |
| Undistributed Cash at Beginning of Period | 63978 | 46 | 46 | 46 |
| Disbursements—Administrative Expenses | (128795) | (116456) | (325622) | (249343) |
| Balance Available for Distribution | 138033 | 132512 | 138033 | 288052 |
| Cash Distributions to Unit Holders | 0 | (132466) | 0 | (288006) |
| Undistributed Cash at End of Period | $138033 | $46 | $138033 | $46 |
| Cash Distributions Per Unit (based on 277,712 Trust Units Outstanding) | $0.00 | $0.48 | $0.00 | $1.04 |

---

(1) As of April 1, 2025 undistributed cash in the aggregate amount of $63,978 was being held in reserve for future potential administrative expenses and liabilities in accordance with the Declaration of Trust.

(2) Undistributed cash in the aggregate amount of $138,033 is being held in reserve for future potential administrative expenses and liabilities in accordance with the Declaration of Trust.

The accompanying notes are an integral part of the unaudited financial statements.

The Trust does not prepare a balance sheet or a statement of cash flows.

------

#### **Table of Contents**
MILLS MUSIC TRUST

NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS

THREE AND SIX MONTHS ENDED

JUNE 30, 2025 AND JUNE 30, 2024

(UNAUDITED)

NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

#### Organization and Background

The Contingent Portion amounts are currently payable by EMI Mills Music Inc. ("<u>EMI</u>"), the owner of the copyrighted materials contained in the Catalogue. The Trust has been advised that Sony/ATV Music Publishing LLC ("<u>Sony/ATV</u>") is the administrator and manager of EMI and the Catalogue.

HSBC Bank, USA, N.A. is the Corporate Trustee of the Trust (the "<u>Corporate Trustee</u>"), and Lee Eastman is the Individual Trustee of the Trust (the "Individual Trustee" and together with the Corporate Trustee, the "<u>Trustees</u>").

#### Proceeds from Contingent Portion Payments
The Trust receives quarterly payments of the Contingent Portion from EMI and distributes the amounts it receives to the registered owners of Trust certificates (the "<u>Unit Holders</u>") representing interests in the Trust (the "<u>Trust Units"</u>), after payment of, or withholdings in connection with, expenses and liabilities of the Trust. The Declaration of Trust provides that these are the Trust's sole responsibilities and that the Trust is prohibited from engaging in any business activities.

Payments of the Contingent Portion to the Trust are based on royalty income which the Catalogue generates. The Trust does not own the Catalogue or any copyrights or other intellectual property rights and is not responsible for collecting royalties in connection with the Catalogue. As the current owner and administrator of the Catalogue, EMI is obligated under the Asset Purchase Agreement to use its best efforts to collect all royalties, domestic and foreign, in connection with the Catalogue and to remit a portion of its royalty income to the Trust as its Contingent Portion payment obligation, in accordance with the terms of the Asset Purchase Agreement.

#### Calculation of the Contingent Portion
Payments of the Contingent Portion to the Trust are ordinarily made on a quarterly basis, approximately two to three months after a quarter ends. The Trust distributes the amounts it receives in Contingent Portion payments to the Unit Holders after payment of, or withholdings in connection with, expenses and liabilities of the Trust.

The amount of each payment of the Contingent Portion is based on a formula set forth in the Asset Purchase Agreement. Prior to the first quarter of 2010, the Contingent Portion was calculated as an amount ranging from 65% to 75% of gross royalty income from the exploitation of the Catalogue for each quarterly period, less royalty expenses. In addition, the Contingent Portion was guaranteed to be at least a minimum of $167,500 per quarter (the "<u>Minimum Payment Obligation</u>").

Beginning with the first quarter of 2010, the Asset Purchase Agreement provides for certain changes with respect to the calculation of the Contingent Portion. One such change is that the Minimum Payment Obligation is no longer in effect. The Trust is also of the view that the Contingent Portion payable to the Trust changed to a fixed 75% of gross royalty income from the exploitation of the Catalogue for each quarterly period, less royalty related expenses (the "<u>New Calculation Method</u>"). However, EMI has disputed that the New Calculation Method is the correct interpretation of the Asset Purchase Agreement. As a result of EMI not applying the New Calculation Method, EMI's payments of the Contingent Portion have been deficient, in the Trust's view, by the following amounts (the "<u>Underpayments</u>"):

---

| | |
|:---|:---|
| Quarterly Payment Period | Amount of<br> Deficiency |
| March 31, 2016 | $79889 |
| September 30, 2016 | 37529 |
| March 31, 2017 | 85359 |
| September 30, 2017 | 41557 |

---

------

#### **Table of Contents**

---

| | |
|:---|:---|
| Quarterly Payment Period | Amount of<br> Deficiency |
|  March 31, 2018 | 98901 |
|  September 30, 2018 | 75712 |
|  March 31, 2019 | 71489 |
|  June 30, 2019 | 41786 |
|  September 30, 2019 | 68571 |
|  December 31, 2019 | 42572 |
|  March 31, 2020 | 40025 |
|  June 30, 2020 | 15557 |
|  September 30, 2020 | 40085 |
|  March 31, 2021 | 42742 |
|  June 30, 2021 | 43148 |
|  September 30, 2021 | 38846 |
|  December 31, 2021 | 38112 |
|  March 31, 2022 | 0 |
|  June 30, 2022 | 70709 |
|  September 30, 2022 | 83438 |
|  December 31, 2022 | 0 |
|  March 31, 2023 | 44908 |
|  June 30, 2023 | 37491 |
|  September 30, 2023 | 131213 |
|  December 31, 2023 | 40761 |
|  March 31, 2024 | 43909 |
|  June 30, 2024 | 0 |
|  September 30, 2024 | 135768 |
|  December 31, 2024 | 0 |
|  March 31, 2025 | 69244 |
|  June 30, 2025 | 0 |
|  Total | $1559321 |

---

As of the date hereof, the Trust has not received the Underpayments, and EMI has expressly disagreed with the Trust.

In addition, on October 1, 2020, the Trust engaged Citrin Cooperman & Company LLP, an accounting firm specializing in auditing royalty income ("<u>Citrin</u>"), to conduct a special audit of the books and records of EMI administered by Sony/ATV to determine the areas and extent of underpayment, if any, of quarterly Contingent Portion payments payable to the Trust for the periods beginning January 1, 2016 and ended December 31, 2020 (the "<u>Audit Period</u>"). Citrin's final report (the "<u>Citrin Report</u>") was delivered to the Trustees on April 4, 2022. The Citrin Report identified multiple asserted royalty omissions and expense over-deductions from the Contingent Portion during the Audit Period in addition to the Underpayments. The Trust distributed the Citrin Report to EMI on or about April 13, 2022. EMI has disputed the findings of the Citrin Report. As part of an effort to settle any disagreement regarding the computation or payment of the Contingent Portion, including the Underpayments and the other amounts identified in the Citrin Report, on October 3, 2022, EMI and the Trust executed a Tolling Agreement pursuant to which the parties agreed to suspend, effective as of January 1, 2022, the running of any relevant statute of limitations applicable to any claim relating to the royalty omissions and expense over-deductions identified in the Citrin Report. As of May 30, 2025, EMI and the Trust have extended the tolling period through September 30, 2025, subject to either party's right to terminate the tolling period on thirty days' prior written notice.

The Trust can offer no assurance that it will be able to recover any of the Underpayments or other amounts identified in the Citrin Report, or that it will resolve the dispute relating to the New Calculation Method with respect to future payments of the Contingent Portion.

#### Cash Distributions to Unit Holders
The Declaration of Trust provides for the distribution to the Unit Holders of all funds the Trust receives after payment of, or withholdings in connection with, expenses and liabilities of the Trust. In March 2025 and June 2025, the Trust received from EMI a Contingent Portion payment of $260,759 ($0.9390 Per Trust Unit) and $202,850 ($0.7304 per Trust Unit) attributable to royalties received by EMI for the fourth quarter of 2024 (the "<u>Q4 2024 Contingent Portion Payment</u>") and the first quarter of 2025 ("<u>Q1 2025 Contingent Portion Payment</u>"), respectively. After receiving the Q4 2024 Continent Portion Payment and Q1 2025 Contingent Portion Payment, the Trust paid $196,827 and $128,795, respectively, to third party advisors and professionals providing services to the Trust in connection with invoices rendered to the Trust, leaving an aggregate balance of $138,033 ($0.4970 per Trust Unit) at June 30, 2025. The Trustees decided to reserve the full amount of such balance for potential future administrative expenses and liabilities in accordance with Section 5.7 of the Declaration of Trust, and therefore did not make a distribution to Unit Holders in respect of the Q4 2024 Contingent Portion Payment or Q1 2025 Contingent Portion Payment. The Trust will continue from time to time to assess the Trust's needs with respect to future potential administrative expenses and liabilities to determine the amount of cash distributions, if any, to be made to Unit Holders in connection with any quarterly Contingent Portion payment received by the Trust from EMI. For information regarding cash disbursements made to Unit Holders for the three and six months ended June 30, 2025 and June 30, 2024 see the table headed "Statements of Cash Receipts and Disbursements" under Part I — Item 1, "Financial Statements".

------

#### **Table of Contents**

#### The Copyright Catalogue
The Catalogue is estimated to be composed of over 12,000 music titles (the "<u>Copyrighted Songs</u>"), of which approximately 1,430 produced royalty income in recent years. EMI has provided the Trust with a listing of the top 50 earning songs in the Catalogue during the 2024 calendar year (the "<u>Top 50 Songs</u>"), together with certain copyright information with respect to each of the Top 50 Songs (the "<u>Listing</u>"). A copy of the Listing, as provided by EMI, is included in the Trust's annual report on Form 10-K for the fiscal year ended December 31, 2024. The Listing does not include any information regarding Copyrighted Songs for the 2025 calendar year.

#### Recent Accounting Pronouncements
The Trustees do not believe that any recently issued, but not yet effective, accounting standards, if adopted, would have a material effect on the Trust's financial statement.

#### Accounting Policies
EMI typically makes payments to the Trust of the Contingent Portion in March, June, September and December for the prior calendar quarter. The payments received are accounted for on a cash basis, as are expenses of the Trust. The Declaration of Trust provides for the distribution of the amounts it receives in Contingent Portion payments to the Unit Holders after payment of, or withholdings in connection with, expenses and liabilities of the Trust.

The Trust's financial statements reflect only cash transactions and do not include transactions that would be recorded in financial statements presented on the accrual basis of accounting, as contemplated by generally accepted accounting principles in the United States. The Trust does not prepare a balance sheet or a statement of cash flows.

These unaudited financial statements should be read in conjunction with the financial statements and related notes in the Trust's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The cash receipts and distributions for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

NOTE 2. INCOME TAXES

No provision for income taxes has been made since the liability thereof is that of the Unit Holders and not the Trust.

NOTE 3. GOVERNANCE OF THE TRUST

The Trust does not have, nor does the Declaration of Trust provide for, officers, a board of directors or any employees. HSBC Bank, USA, N.A. is the Corporate Trustee of the Trust, and Lee Eastman is the Individual Trustee of the Trust. Pursuant to the Declaration of Trust, Trustees of the Trust serve until their removal or resignation, or in the case of an Individual Trustee, their incapacity or death. Michael Reiss resigned as an Individual Trustee of the Trust effective as of March 15, 2024, and his Individual Trustee seat is vacant as of August 14, 2025.

On December 23, 2014, the Trust adopted a code of ethics (as defined in Item 406 of Regulation S-K under the Securities Exchange Act of 1933) applicable to the Individual Trustees and the trust officers of the Corporate Trustee. A copy of the Code of Ethics will be provided to any person without charge upon written request to the Trust at its administrative office, c/o HSBC BANK USA, N.A., Corporate Trust, Issuer Services, 66 Hudson Boulevard East, New York, NY 10001. In addition, the Trust relies on the Corporate Trustee to abide by HSBC Bank, USA, N.A.'s Statement of Business Principles and Code of Ethics, which is available on the Corporate Trustee's website at http://www.us.hsbc.com.

The Trust is not a corporate entity and thus does not have an Audit Committee. The Trust has established a policy with regard to audit, audit-related and certain non-audit engagements of its independent auditors. Under this policy, the Trust annually approves certain limited, specified recurring services which may be provided by the Trust's accountant or independent auditors. All other engagements for services to be performed by the Trust's independent auditors must be separately pre-approved by the Trust. Joel Faden acts as Chief Financial Individual providing accounting services for the Trust.

NOTE 4. RELATED PARTY TRANSACTIONS

The Trustees are paid in accordance with the Declaration of Trust, which provides that each Trustee shall receive annual compensation of $2,500, provided that such aggregate compensation to the Trustees as a group may not exceed 3% of the Contingent Portion amounts received by the Trust in any year. The Declaration of Trust also provides for the reimbursement of expenses reasonably incurred in the performance of a Trustee's duties to the Trust, including clerical and administrative services. Accordingly, the Trustees are entitled to receive annual compensation and reimbursement for services performed for the Trust, including the Corporate Trustee's services as the Registrar and Transfer Agent of the certificates representing the Trust Units. The Declaration of Trust also provides that if a Trustee performs unusual or extraordinary services, reasonable compensation for such services shall be paid, subject to the terms and conditions of the Declaration of Trust.

------

#### **Table of Contents**
Pursuant to the Declaration of Trust, disbursements were made as follows to the Trustees for the three and six months ended June 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months<br> Ended June 30 | Three Months<br> Ended June 30 | Six Months<br> Ended June 30 | Six Months<br> Ended June 30 |
|  | 2025 | 2024 | 2025 | 2024 |
| Corporate Trustee Fees | $625 | $625 | $1250 | $1250 |
| Individual Trustee Fees | 625 | 625 | 1250 | 1875 |
| Transfer Agent and Registrar Fees<sup>(1)</sup> | 6875 | 6875 | 13750 | 10625 |
| TOTALS | $8125 | $8125 | $16250 | $13750 |

---

(1) These services are performed by the Corporate Trustee.

The administrative office of the Trust is located at the offices of the Corporate Trustee, HSBC Bank, USA, N.A., Corporate Trust Issuer Services, 66 Hudson Boulevard East, New York, NY 10001. Except for fees paid to the Corporate Trustee in accordance with the Declaration of Trust, no expense is being charged or paid by the Trust for the office space and office equipment of the Corporate Trustee that is being utilized for the Trust.

NOTE 5. SEGMENT INFORMATION

The Trust reports segment information based on the management approach which designates the internal reporting used by the Chief Operating Decision Maker, which are the Trust's Trustees (in such capacities, collectively, the "<u>CODM</u>"), for making decisions and assessing performance as the source of the Trust's reportable segments.

The Trust has one reportable segment: receiving quarterly payments of the Contingent Portion from EMI and distributing the amounts it receives to the Unit Holders, after payment of, or withholdings in connection with, expenses and liabilities of the Trust. As the Trust operates in one reportable segment, the CODM evaluates the performance of the Trust based on the aggregate amount of cash distributions which the Trust is able to pay to Unit Holders. The key performance metric considered by the CODM is cash distributions per Trust Unit. Material cash receipts, disbursements and withholdings of the Trust which are reviewed by the CODM include receipts of the Contingent Portion from EMI and administrative expenses, which primarily consist of third party service provider fees (including legal, accounting, auditor and printer fees) and Trustee and Transfer Agent Registrar fees. The CODM will continue to evaluate its segment reporting disclosures and make adjustments if and to the extent there are material changes in financial reporting requirements.

NOTE 6. SUBSEQUENT EVENTS

None.

------

##### [**Table of Contents**](#toc)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

#### The Copyright Catalogue
The Catalogue is estimated to be composed of over 12,000 music titles (the "<u>Copyrighted Songs</u>"), of which approximately 1,430 produced royalty income in recent years. Based on the Listing, the Trust derives its receipts principally from copyrights established prior to 1960 in the Unites States. The receipts fluctuate based on consumer interest in the nostalgia appeal of older songs and the overall popularity of the songs contained in the Catalogue. The Catalogue also generates royalty income in foreign countries in which copyright is claimed.

A number of factors create uncertainties with respect to the Catalogue's ability to continue to generate royalty income on a continuing, long-term basis for the Trust. These factors include: (i) the effect that foreign and domestic copyright laws and any changes thereto have or will have on renewal rights (e.g., vesting of renewal term rights), (ii) the length of the term of copyright protection under foreign and domestic copyright laws, (iii) reversionary rights that may affect whether EMI is able to retain its rights to the Copyrighted Songs during certain renewal terms (e.g., statutory termination of transfers or "copyright recapture") and (iv) ongoing disputes regarding the payment and calculation of the Contingent Portion.

The Trust does not own the Catalogue or any copyrights or other intellectual property rights and is not responsible for collecting royalties in connection with the Catalogue. As the current owner and administrator of the Catalogue, EMI is obligated under the Asset Purchase Agreement to use its best efforts to collect all royalties, domestic and foreign, in connection with the Catalogue and to remit a portion of its royalty income to the Trust in accordance with its Contingent Portion payment obligation.

The Trust's income is dependent, in part, on EMI's ability to maintain its rights in the Copyrighted Songs through copyright protection. Although Copyrighted Songs may continue to generate royalty revenue after their copyrights have expired, in general as the copyrights for the Copyrighted Songs expire, less royalty income will be generated, and the size of each payment of the Contingent Portion will be reduced accordingly.

Based on the Listing, most of the Top 50 Songs obtained copyright registration under the United States Copyright Act of 1909 (the "<u>1909 Act</u>") between 1926 and 1965. For copyrighted works subject to the 1909 Act, copyright law generally provides for a possible 95 years of copyright protection, subject to certain factors, including the initial registration date of each copyright and compliance with certain statutory provisions including notice and renewal. The Copyright expiration dates for the Top 50 Songs, to the extent known, range between 2021 and 2075, as set forth in the Listing.

The Copyrighted Songs are subject to statutory rights of termination of transfers, which may impact whether EMI is able to retain its ownership of the Copyrighted Songs during their respective terms of copyright protection. For copyrights governed by the 1909 Act, this termination right vests at the end of two different renewal terms, which vary for each Copyrighted Song. As the owner of the Catalogue, EMI (and not the Trust) is responsible for administrating the Catalogue and seeking renewals of the Copyrighted Songs. The Asset Purchase Agreement provides that EMI is obligated to use its best efforts to secure renewals.

#### Contingent Portion Payments
Payments of the Contingent Portion to the Trust are ordinarily made on a quarterly basis, approximately two to three months after a quarter ends. The Trust distributes the amounts it receives in Contingent Portion payments to the Unit Holders after payment of, or withholdings in connection with, expenses and liabilities of the Trust.

The amount of each payment of the Contingent Portion is based on a formula provided in the Asset Purchase Agreement. Prior to the first quarter of 2010, the Contingent Portion was calculated as an amount ranging from 65% to 75% of gross royalty income from the exploitation of the Catalogue for each quarterly period, less royalty expenses. In addition, the Contingent Portion was guaranteed to be at least a minimum of $167,500 per quarter (the "<u>Minimum Payment Obligation</u>").

------

##### [**Table of Contents**](#toc)
Beginning with the first quarter of 2010, the Asset Purchase Agreement provides for certain changes with respect to the calculation of the Contingent Portion. One such change is that the Minimum Payment Obligation is no longer in effect. The Trust is also of the view that the Contingent Portion payable to the Trust changed to a fixed 75% of gross royalty income from the exploitation of the Catalogue for each quarterly period, less royalty related expenses (the "<u>New Calculation Method</u>"). However, EMI has disputed that the New Calculation Method is the correct interpretation of the Asset Purchase Agreement. As a result of the New Calculation Method not being applied, EMI's payments of the Contingent Portion have been deficient, in the Trust's view, by the following amounts (the "<u>Underpayments</u>"):

---

| | |
|:---|:---|
| **Quarterly Payment Period** | **Amount of**<br>**Deficiency** |
|  March 31, 2016 | $79889 |
|  September 30, 2016 | 37529 |
|  March 31, 2017 | 85359 |
|  September 30, 2017 | 41557 |
|  March 31, 2018 | 98901 |
|  September 30, 2018 | 75712 |
|  March 31, 2019 | 71489 |
|  June 30, 2019 | 41786 |
|  September 30, 2019 | 68571 |
|  December 31, 2019 | 42572 |
|  March 31, 2020 | 40025 |
|  June 30, 2020 | 15557 |
|  September 30, 2020 | 40085 |
|  March 31, 2021 | 42742 |
|  June 30, 2021 | 43148 |
|  September 30, 2021 | 38846 |
|  December 31, 2021 | 38112 |
|  March 31, 2022 | 0 |
|  June 30, 2022 | 70709 |
|  September 30, 2022 | 83438 |
|  December 31, 2022 | 0 |
|  March 31, 2023 | 44908 |
|  June 30, 2023 | 37491 |
|  September 30, 2023 | 131213 |
|  December 31, 2023 | 40761 |
|  March 31, 2024 | 43909 |
|  June 30, 2024 | 0 |
|  September 30, 2024 | 135768 |
|  December 31, 2024 | 0 |
|  March 31, 2025 | 69244 |
|  June 30, 2025 | 0 |
|  **Total** | $**1559321** |

---

As of the date hereof, the Trust has not received the Underpayments, and EMI has expressly disagreed with the Trust.

In addition, on October 1, 2020, the Trust engaged Citrin Cooperman & Company LLP, an accounting firm specializing in auditing royalty income ("<u>Citrin</u>"), to conduct a special audit of the books and records of EMI administered by Sony/ATV to determine the areas and extent of underpayment, if any, of quarterly Contingent Portion payments payable to the Trust for the periods beginning January 1, 2016 and ended December 31, 2020 (the "<u>Audit Period</u>"). Citrin's final report (the "<u>Citrin Report</u>") was delivered to the Trustees on April 4, 2022. The Citrin Report identified multiple asserted royalty omissions and expense over-deductions from the Contingent Portion during the Audit Period in addition to the Underpayments. The Trust distributed the Citrin Report to EMI on or about April 13, 2022. EMI has disputed the findings of the Citrin Report. As part of an effort to settle any disagreement regarding the computation or payment of the Contingent Portion, including the Underpayments and the other amounts identified in the Citrin Report, on October 3, 2022, EMI and the Trust executed a Tolling Agreement pursuant to which the parties agreed to suspend, effective as of January 1, 2022, the running of any relevant statute of limitations applicable to any claim relating to the royalty omissions and expense over-deductions identified in the Citrin Report. As of May 30, 2025, EMI and the Trust have extended the tolling period through September 30, 2025, subject to either party's right to terminate the tolling period on thirty days' prior written notice.

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##### [**Table of Contents**](#toc)
The Trust can offer no assurance that it will be able to recover any of the Underpayments or other amounts identified in the Citrin Report, or that it will resolve the dispute relating to the New Calculation Method with respect to future payments of the Contingent Portion.

#### Recent Contingent Portion Payment
In June 2025, the Trust received $202,850 ($.7304 per Trust Unit) from EMI for royalty income generated by the Catalog during the first quarter of 2025, as compared to $248,922 ($0.8693 per Trust Unit) for the payment attributable to the first quarter of 2024.

#### Recent Distributions to Unit Holders
In March 2025 and June 2025, the Trust received from EMI a Contingent Portion payment of $260,759 ($0.9390 Per Trust Unit) and $202,850 ($0.7304 per Trust Unit) attributable to royalties received by EMI for the fourth quarter of 2024 (the "<u>Q4 2024 Contingent Portion Payment</u>") and the first quarter of 2025 ("<u>Q1 2025 Contingent Portion Payment</u>"), respectively. After receiving the Q4 2024 Continent Portion Payment and Q1 2025 Contingent Portion Payment, the Trust paid $196,827 and $128,795, respectively, to third party advisors and professionals providing services to the Trust in connection with invoices rendered to the Trust, leaving an aggregate balance of $138,033 ($0.4970 per Trust Unit) at June 30, 2025. The Trustees decided to reserve the full amount of such balance for potential future administrative expenses and liabilities in accordance with Section 5.7 of the Declaration of Trust, and therefore did not make a distribution to Unit Holders in respect of the Q4 2024 Contingent Portion Payment or Q1 2025 Contingent Portion Payment. The Trust will continue from time to time to assess the Trust's needs with respect to future potential administrative expenses and liabilities to determine the amount of cash distributions, if any, to be made to Unit Holders in connection with any quarterly Contingent Portion payment received by the Trust from EMI. For information regarding cash disbursements made to Unit Holders for the three and six months ended June 30, 2025 and June 30, 2024 see the table headed "Statements of Cash Receipts and Disbursements" under Part I — Item 1, "Financial Statements". For more computation details regarding such Contingent Portion payments and the lack of a distribution related thereto please refer to the quarterly distribution report, dated June 25, 2025, attached as Exhibit 99.1 to the Current Report on Form 8-K, which the Trust filed with the Securities and Exchange Commission on June 25, 2025.

#### Cash and Administrative Expenses
As of July 31, 2025, the Trust was holding $138,033 in cash and had $63,186 in unpaid administrative expenses for services rendered to the Trust.

#### Segment Information
The Trust reports segment information based on the management approach which designates the internal reporting used by the Chief Operating Decision Maker, which are the Trust's Trustees (in such capacities, collectively, the "<u>CODM</u>"), for making decisions and assessing performance as the source of the Trust's reportable segments.

The Trust has one reportable segment: receiving quarterly payments of the Contingent Portion from EMI and distributing the amounts it receives to the Unit Holders, after payment of, or withholdings in connection with, expenses and liabilities of the Trust. As the Trust operates in one reportable segment, the CODM evaluates the performance of the Trust based on the aggregate amount of cash distributions which the Trust is able to pay to Unit Holders. The key performance metric considered by the CODM is cash distributions per Trust Unit. Material cash receipts, disbursements and withholdings of the Trust which are reviewed by the CODM include receipts of the Contingent Portion from EMI and administrative expenses, which primarily consist of third party service provider fees (including legal, accounting, auditor and printer fees) and Trustee and Transfer Agent Registrar fees. The CODM will continue to evaluate its segment reporting disclosures and make adjustments if and to the extent there are material changes in financial reporting requirements.

#### Inflation
The Trust does not believe that inflation has materially affected its activities.

#### Liquidity and Capital Resources
The Declaration of Trust provides for the distribution to the Unit Holders of all funds the Trust receives after payment of, or withholdings in connection with, expenses and liabilities of the Trust.

See the table headed "Statements of Cash Receipts and Disbursements" under Part 1 — Item 1, "Financial Statements" for information regarding cash disbursements made to Unit Holders during the three and six months ended June 30, 2025 and June 30, 2024.

#### Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Trust's financial condition, changes in financial condition, revenues or expenses, results of operations or liquidity that is material to investors.

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##### [**Table of Contents**](#toc)
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

#### Controls and Procedures
As of the end of the period covered by this quarterly report, the Trust carried out an evaluation of the effectiveness of the design and operation of the Trust's "disclosure controls and procedures" (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>")) under the supervision and with the participation of the Trust's management, including the Chief Financial Individual providing accounting services and the trust officers of the Corporate Trustee. Based on that evaluation, the Chief Financial Individual providing accounting services and the trust officer of the Corporate Trustee concluded that the Trust's disclosure controls and procedures are effective.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the Trust's reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the Trust's reports filed under the Exchange Act is accumulated and communicated to Trust's management, including the Chief Financial Individual providing accounting services and the trust officer of the Corporate Trustee, to allow timely decisions regarding required disclosure.

#### Changes in Internal Control over Financial Reporting
There were no changes in the Trust's internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the fiscal period covered by this quarterly report that materially affected, or are reasonably likely to materially affect, the Trust's internal control over financial reporting.

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##### [**Table of Contents**](#toc)

#### PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

The Trust is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information under this item.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULT UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

#### Rule 10b5-1 Trading Plans
During the three months ended June 30, 2025, none of the Trustees adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any "non-Rule 10b5-1 trading arrangement" as defined in Item 408(c) of Regulation S-K.

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##### [**Table of Contents**](#toc)
ITEM 6. EXHIBITS

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| | |
|:---|:---|
| Exhibit<br> No. | Description |
| 31.1 | [Certification by the Chief Financial Individual providing accounting services pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)](d943441dex311.htm) |
| 31.2 | [Certification by the trust officer of the Corporate Trustee pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)](d943441dex312.htm) |
| 32.1\* | [Certification by the Chief Financial Individual providing accounting services pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)](d943441dex321.htm) |
| 32.2\* | [Certification by the trust officer for the Corporate Trustee Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)](d943441dex322.htm) |
| 101.1NS | XBRL Instance Document |
| 101.SCH | XBRL Schema Document |
| 101.CAL | XBRL Calculation Linkbase Documents |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Labels Linkbase Documents |
| 101.PRE | XBRL Presentation Linkbase Documents |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

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\* Furnished, not filed

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##### [**Table of Contents**](#toc)
<u>SIGNATURES</u> 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| August 14, 2025 | Mills Music Trust | Mills Music Trust |
|  | (Registrant) | (Registrant) |
|  | By: | /s/ Garfield Barrett |
|  |  | Garfield Barrett |
|  |  | Trust Officer of the Corporate Trustee |
|  |  | HSBC Bank USA, NA |

---

## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Garfield Barrett, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Mills Music Trust;

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

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; \*

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

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

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

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

\* The statements of cash receipts and disbursements reflect only cash transactions and do not include transactions that would be recorded in financial statements presented on the accrual basis of accounting. The Trust is required to distribute all funds received after payment of, or withholdings in connection with, expenses and liabilities of the Trust. Accordingly, the Trust has not prepared any statements of financial condition or cash flows. 

---

| | |
|:---|:---|
| August 14, 2025 | /s/ Garfield Barrett |
|  | Garfield Barrett |
|  | Trust Officer of the Corporate Trustee<br> HSBC Bank USA, NA |

---

## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Joel Faden, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Mills Music Trust;

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

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; \*

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

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

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

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

\* The statements of cash receipts and disbursements reflect only cash transactions and do not include transactions that would be recorded in financial statements presented on the accrual basis of accounting. The Trust is required to distribute all funds received after payment of, or withholdings in connection with, expenses and liabilities of the Trust. Accordingly, the Trust has not prepared any statements of financial condition or cash flows. 

---

| | |
|:---|:---|
| August 14, 2025 | /s/ Joel Faden |
|  | Joel Faden |
|  | Chief Financial Individual (principal financial officer) |

---

## Exhibit 32.1

**Exhibit 32.1** 

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

**(18 U.S.C. SECTION 1350)** 

In connection with the Quarterly Report of Mills Music Trust (the "<u>Trust</u>") on Form 10-Q for the fiscal quarter ended June 30, 2025, as filed with the Securities and Exchange Commission (the "<u>Report</u>"), the undersigned hereby certifies, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of
1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition\* and
results of operations of the Trust.

\* The statements of cash receipts and disbursements reflect only cash transactions and do not include transactions that would be recorded in financial statements presented on the accrual basis of accounting. The Trust is required to distribute all funds received after payment of, or withholdings in connection with, expenses and liabilities of the Trust. Accordingly, the Trust has not prepared any statements of financial condition or cash flows. 

---

| | |
|:---|:---|
| August 14, 2025 | /s/ Garfield Barrett |
|  | Garfield Barrett |
|  | Trust Officer of The Corporate Trustee |

---

## Exhibit 32.2

**Exhibit 32.2** 

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

**(18 U.S.C. SECTION 1350)** 

In connection with the Quarterly Report of Mills Music Trust (the "<u>Trust</u>") on Form 10-Q for the fiscal quarter ended June 30, 2025, as filed with the Securities and Exchange Commission (the "<u>Report</u>"), the undersigned hereby certifies, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of
1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition\* and
results of operations of the Trust.

\* The statements of cash receipts and disbursements reflect only cash transactions and do not include transactions that would be recorded in financial statements presented on the accrual basis of accounting. The Trust is required to distribute all funds received after payment of, or withholdings in connection with, expenses and liabilities of the Trust. Accordingly, the Trust has not prepared any statements of financial condition or cash flows. 

---

| | |
|:---|:---|
| August 14, 2025 | /s/ Joel Faden |
|  | Joel Faden |
|  | Chief Financial Individual (principal financial officer) |

---