Scores Holding Company Reports Revenue Surge to $634,500 and Net Income Turnaround for Fiscal Year 2022

Scores Holding Company, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2022, with revenues rising to $634,500, compared to $241,001 in 2021. This increase is attributed to the easing of COVID-19 restrictions, which allowed the company to recognize previously deferred revenue in accordance with ASC 606 guidelines. The company also reported a net income of $262,084, a turnaround from a net loss of $147,022 in the previous year, reflecting improved operational conditions and revenue recognition practices.

The company has undergone notable changes in its management structure and operational strategy. Robert M. Gans, who has been with the company since 2010, continues to serve as President and CEO, while Howard Rosenbluth holds the position of Treasurer and CFO. The company has also seen a reduction in general and administrative expenses, which decreased from $371,928 in 2021 to $366,732 in 2022, primarily due to lower salary expenses and legal costs associated with ongoing litigation.

Operationally, Scores Holding Company currently licenses its brand to five gentlemen's nightclubs located in Chicago, Tampa, Mooresville, Palm Springs, and Las Vegas. The company has retained 100% of the royalty payments from these clubs since an Assignment Agreement in 2009. Despite the challenges posed by the pandemic, all royalty-paying licensees have reopened and are current on their payments, contributing to a cash collection increase from $235,000 in 2020 to $858,000 in 2022. The company has also noted a growing interest from new establishments in utilizing the Scores brand, indicating potential for geographic and market expansion.

Looking ahead, Scores Holding Company faces challenges related to its accumulated losses of $6,876,598 and a negative working capital deficit of $205,765, raising concerns about its ability to continue as a going concern. The company plans to raise additional working capital through continued licensing of its brand. However, there are no assurances that it will achieve sufficient revenue levels to support its operational needs. Management remains optimistic about the recovery of the adult entertainment industry and the potential for increased licensing opportunities as market conditions improve.