SCORES HOLDING CO INC

Scores Holding Company, Inc.

Business overview

Scores Holding Company, Inc. is a Utah holding company that licenses the Scores brand and related intellectual property to adult entertainment nightclubs in the United States. It operates through Scores Licensing Corp. (SLC), which collects royalties and manages trademark licenses granted by Scores. Scores Holding does not operate clubs; it receives royalties and fees from external club operators.

Business model and operations

• Core activity: Licensing the Scores name, trademarks, and related IP to adult nightclubs and restaurants. SLC holds the licensing rights and may issue sublicenses with Scores’ approval.
• Revenue model: Royalty-based licensing fees (typically a percentage of net revenues) and, in some cases, initiation or contract initiation fees. Royalties are recognized over time and initiation fees are recognized at contract start in accordance with ASC 606.
• Brand control: The company and its parent maintain brand quality standards and retain rights to inspect facilities and approve promotional materials and packaging.
• Agreement terms: Licensing agreements generally have five-year terms with automatic five-year renewals, subject to termination rights by either party and to honoring pre-existing licenses.

Locations and licensees

As of January 7, 2026, five Scores-branded clubs were operating in the United States:

• Scores Chicago – Chicago, Illinois
• Scores Tampa – Tampa, Florida
• Scores Mooresville – Mooresville, North Carolina
• Scores Palm Springs – Palm Springs, Florida
• Scores Las Vegas – Las Vegas, Nevada

The company reported six license agreements as of June 1, 2026. Prior years: five licensees generating royalties in 2024 and six in 2023.

Key customers and concentration

• Licensee counts: 2024 — five royalty-generating licensees; 2023 — six licensees.
• 2024 revenue concentration: Four licensees accounted for 94% of licensing revenue (contributions of 11%, 16%, 32%, and 34%); the remaining licensee accounted for the balance (~6%).
• 2024 accounts receivable concentration: Receivables from three licensees represented 21%, 39%, and 40% of total year-end receivables.

Employees and corporate services

• Employees: As of December 31, 2024, Scores Holding Company, Inc. reported no employees. Administrative, accounting, and related services are provided under a Management Services Agreement with related parties.

Ownership and management

• Ownership change: On January 27, 2009, Mitchell’s East LLC acquired a large block of stock, resulting in a change of control. Robert M. Gans is the sole owner of Mitchell’s East LLC and beneficially owned 53.8% of the company’s common stock at the reported date.
• Key officers (as of June 29, 2026):
  • Robert M. Gans — President, Chief Executive Officer and Director (appointed August 6, 2010)
  • Howard Rosenbluth — Treasurer, Chief Financial Officer, Secretary and Director (appointed April 21, 2009)
  • Martin Gans — Director (appointed June 23, 2009; related by family to Robert M. Gans)
• Related-party arrangements: The company rents and receives management services from related parties.

Selected financial highlights (years ended December 31, 2024 and 2023)

• Revenue: 2024 — $279,000 (royalty revenue); 2023 — $350,000.
• Net income: 2024 — $47,265; 2023 — $11,120.
• Operating expenses (G&A): 2024 — $231,735; 2023 — $338,293. Litigation-related legal expenses included in G&A: $14,151 (2024) and $46,911 (2023).
• Other income/expense: Interest expense — $0 (2024) and $(587) (2023).
• Liquidity and balance sheet (as of 12/31/2024):
  • Cash and cash equivalents: $87,049
  • Current assets: $128,299
  • Current liabilities: $300,209
  • Working capital deficit: $(171,910)
  • Accumulated deficit: $(6,818,213)
  • Total stockholders’ deficit: $(572,410)
  • Contract liabilities: $400,500 current; $418,500 long-term
• Cash flows (year ended 12/31/2024 vs 2023): Net cash provided by operating activities — $40,425 (2024) vs $39,024 (2023). Net cash from investing and financing activities: $0 in both years.
• Going concern: The company reports substantial doubt about its ability to continue as a going concern for one year from the date of the consolidated financial statements due to accumulated losses and a working capital deficit. The company plans to raise additional working capital primarily through continued licensing of its brand; there is no assurance additional financing will be available.

Other points

• Intellectual property: The company owns 15 registered U.S. trademarks and enforces the Scores brand through licensing agreements that include quality control and promotional material approvals.
• Tax and accounting: Revenue recognition follows ASC 606. Initiation fees, when applicable, are recognized at contract inception; royalties are recognized over time. A full valuation allowance is recorded against net operating loss carryforwards.
• Related-party transactions and governance:
  • I.M. Operating LLC (IMO): Had a licensing agreement for Scores New York; Robert M. Gans is the majority owner of IMO. The Scores New York license terminated after operations ceased.
  • Metropolitan Lumber, Hardware and Building Supplies, Inc. (MLH): Provides management services under an agreement; fees were $90,000 annually before 2017 adjustments. As of 12/31/2024, the company owed MLH $125,000; MLH had a $5,250 receivable from the company as of the same date.
  • West Side Realty of New York, Inc. (WSR): Related-party landlord with a lease terminated 12/31/2020; no rent charged since termination and a receivable was written off.
• Legal matters: The company has engaged in trademark and licensing-related proceedings in the past; the notes indicate prior matters were resolved, settled, or dismissed.

Bottom line

Scores Holding Company licenses the Scores brand to adult nightclubs and similar venues through SLC, earning royalties and occasional initiation fees. It reported five active Scores-branded clubs as of early 2026 and six license agreements as of mid-2026. Financial results for 2024 show modest revenue ($279k) and a small net income ($47k), offset by a substantial accumulated deficit (~$6.8 million) and a working capital deficit. The company relies on licensing activity and external operators and expects to seek additional capital to address liquidity and ongoing operations.