Scores Holding Reports Zero Q1 Revenue Amidst Legal Settlements

TL;DR

**SCORES HOLDING is a zombie stock with no revenue and ongoing legal baggage; avoid.**

AI Summary

SCORES HOLDING CO INC reported no revenue for the three months ended March 31, 2023, consistent with the prior year period. The company's net income was not explicitly stated, but the filing indicates a focus on managing its existing assets and liabilities. Key business changes include the ongoing litigation with Jessica B. Hall, which was settled on July 21, 2023, for an undisclosed amount. The company also continues to hold a 10% interest in IM Operating LLC, which operates Scores New York, under a license agreement dating back to January 27, 2009. Risks primarily revolve around its limited operational activity and reliance on licensing fees, which were zero in Q1 2023. The strategic outlook appears to be centered on resolving legal matters and potentially leveraging its existing intellectual property, though no new initiatives were detailed. The company's retained earnings decreased from -$1,775,000 as of December 31, 2022, to -$1,778,000 as of March 31, 2023, reflecting a net loss of $3,000 for the quarter.

Why It Matters

For investors, the lack of revenue and ongoing legal entanglements signal significant operational challenges and a highly speculative investment. Employees and customers are minimally impacted given the company's holding nature, but the underlying Scores New York venue, operated by IM Operating LLC, continues to function. The broader market impact is negligible due to SCORES HOLDING CO INC's small scale and lack of active operations. Competitively, the company is not actively competing in the entertainment sector, instead relying on its legacy licensing agreements.

Risk Assessment

Risk Level: high — The risk level is high because SCORES HOLDING CO INC reported $0 in revenue for the three months ended March 31, 2023, indicating no active income-generating operations. Furthermore, the company's retained earnings are negative, at -$1,778,000 as of March 31, 2023, demonstrating a history of losses and limited financial stability.

Analyst Insight

Investors should avoid SCORES HOLDING CO INC given its zero revenue, negative retained earnings, and reliance on legacy licensing agreements with no clear growth strategy. This stock presents a high-risk, speculative investment with no apparent upside.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$3,000

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

0.00%

Revenue Breakdown

Key Numbers

• $0 — Revenue (for the three months ended March 31, 2023, indicating no active operations)
• -$1,778,000 — Retained Earnings (as of March 31, 2023, reflecting accumulated losses)
• -$3,000 — Net Loss (for the three months ended March 31, 2023, contributing to negative retained earnings)
• 10% — Ownership Interest (in IM Operating LLC, which operates Scores New York)
• 2023-07-21 — Settlement Date (for the litigation with Jessica B. Hall)
• 2009-01-27 — License Agreement Date (for Scores New York with IM Operating LLC)

Key Players & Entities

• SCORES HOLDING CO INC (company) — filer of the 10-Q
• IM Operating LLC (company) — operator of Scores New York, 10% owned by Scores Holding
• Scores New York (company) — nightclub operated under license
• Jessica B. Hall (person) — plaintiff in settled litigation
• Robert M. Gans (person) — related party associated with Westside Realty of New York Inc.
• Westside Realty of New York Inc. (company) — related party mentioned in the filing
• Swan Media Group Inc. (company) — entity mentioned in prior agreements
• Star Light Events LLC (company) — entity mentioned in prior agreements
• Metropolitan Lumber Hardware And Building Supplies Inc. (company) — entity mentioned in prior agreements
• 07 Trade & Services (company) — organization name associated with the filer

FAQ

Risk Factors

• Limited Operational Activity [high — operational]: The company reported zero revenue for the three months ended March 31, 2023, indicating a lack of active business operations. This reliance on existing assets and liabilities, with no new revenue streams detailed, presents a significant operational risk.
• Negative Retained Earnings [medium — financial]: As of March 31, 2023, the company's retained earnings were negative $1,778,000, reflecting accumulated losses. The net loss for the quarter was $3,000, further contributing to the negative equity position.
• Ongoing Litigation and Settlements [medium — legal]: The company was involved in litigation with Jessica B. Hall, which was settled on July 21, 2023. While settled, the terms of the settlement were undisclosed, and the process itself represents a drain on resources and potential future liabilities.
• Reliance on Licensing Fees [high — financial]: The company's revenue is heavily dependent on licensing fees, which were $0 for the three months ended March 31, 2023. This dependency on a single, currently non-performing revenue stream poses a substantial financial risk.

Industry Context

The amusement and recreation services industry, where SCORES HOLDING CO INC is classified, typically involves businesses like theme parks, casinos, and sports facilities. However, SCORES HOLDING CO INC appears to operate in a niche, relying on licensing and intellectual property rather than direct service provision. The industry can be sensitive to economic downturns and changing consumer preferences.

Regulatory Implications

As a company with limited operations and a history of litigation, SCORES HOLDING CO INC may face scrutiny regarding its financial reporting and disclosure practices. Any future business activities or asset disposals would need to comply with relevant securities regulations.

What Investors Should Do

1. Monitor future filings for any updates on revenue generation from licensing agreements.
2. Seek clarification on the terms and financial impact of the Jessica B. Hall litigation settlement.
3. Evaluate the long-term viability of the 10% interest in IM Operating LLC given the current lack of royalty revenue.

Key Dates

• 2023-03-31: End of Q1 2023 Reporting Period — Marks the period for which the 10-Q filing reports financial performance, showing zero revenue and a net loss of $3,000.
• 2023-07-21: Settlement of Litigation with Jessica B. Hall — Indicates the resolution of a significant legal matter, though the financial impact of the undisclosed settlement amount remains unknown.
• 2009-01-27: License Agreement for Scores New York — Establishes the long-standing agreement under which the company holds a 10% interest in IM Operating LLC, the operator of Scores New York.

Glossary

Retained Earnings

The cumulative amount of net income that a company has retained over its lifetime, after paying out dividends. (SCORES HOLDING CO INC has negative retained earnings (-$1,778,000 as of March 31, 2023), indicating that the company has accumulated more losses than profits since its inception.)

Licensing Fees Royalty Revenue

Revenue generated from granting permission to use intellectual property, trademarks, or brand names, often in exchange for a fee or royalty. (This is a key revenue stream for SCORES HOLDING CO INC, which reported $0 in this category for Q1 2023, highlighting the company's current lack of operational income.)

IM Operating LLC

The entity that operates Scores New York under a license agreement. (SCORES HOLDING CO INC holds a 10% interest in this LLC, representing its primary, albeit currently non-revenue-generating, asset.)

Settled Litigation

A legal dispute that has been resolved through an agreement between the parties involved, rather than through a court judgment. (The settlement with Jessica B. Hall on July 21, 2023, signifies the closure of a legal challenge, but the financial implications are not yet clear.)

Year-Over-Year Comparison

For the three months ended March 31, 2023, SCORES HOLDING CO INC reported $0 in revenue, consistent with the prior year period. The company's net loss for the quarter was $3,000, contributing to a slight decrease in retained earnings from -$1,775,000 to -$1,778,000. No significant changes in operational risks or new financial disclosures were apparent, with the primary focus remaining on managing existing assets and liabilities.

Filing Details

This Form 10-Q (Form 10-Q) was filed with the SEC on May 30, 2025 by Jessica B. Hall regarding SCORES HOLDING CO INC.

View full filing on EDGAR

View Full Filing

View this 10-Q filing on SEC EDGAR