Hey board members, these are good numbers for sure. Read the numbers and be happy to have your shares. It is only going to get better
Form 10-K for SCORES HOLDING CO INC
25-Mar-2015
Annual Report
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Results of Operations
For the year ended December 31, 2014 (the "2014 period") compared to the year ended December 31, 2013 (the "2013 period").
Revenues
Revenues increased to $835,240 for the 2014 period from $731,563 for the 2013 period. This increase was primarily due to the launching of five new clubs, which commenced royalties primarily in the third and fourth quarters of 2014. Revenues from the New York Club decreased twenty-nine percent (29%) to $108,210 as compared to $152,840 for the 2014 and 2013 periods, respectively. Revenues from our Chicago nightclub increased four percent (4%) to $153,768 for the 2014 period from $147,186 from the 2013 period, while revenues from our Baltimore club increased one percent (1%) to $143,123 for the 2014 period from $141,120 for the 2013 period and revenues from our New Orleans club remained the same at $120,000 for the 2014 and 2013 periods. Revenue from our Tampa club remained the same at $120,000 for 2014 and 2013 periods. Revenue from our Scoreslive.com licensee decreased twenty-five percent (25%) to $37,640 for the 2014 period from $50,417 for the 2013 period. Revenues from our Atlantic City nightclub licensee increased one hundred percent (100%) to $90,000 as royalties commenced in April 2014. Revenues from our Jacksonville club increased one hundred percent (100%) to $10,000 as royalties commenced in September 2014. Revenues from our Savannah Club increased one hundred percent (100%) to $20,000 as royalties commenced in August 2014. Revenues from our Houston Club increased one hundred percent (100%) to $15,000 as royalties commenced in the fourth quarter. Revenues from our Harvey Club increased one hundred percent (100%) to $17,500 as royalties commenced in the fourth quarter. Since our licenses are mostly structured such that we receive a percentage of revenues from our licensees, the foregoing increase or decreases are a direct result of revenues at the licensee level.
Operating Expenses
Operating expenses for the 2014 period and the 2013 period were $481,178 and $528,133 respectively. These expenses were directly related to the maintenance of the corporate entity and regulatory filing of periodic reports under the Securities Exchange Act of 1934 (the "Exchange Act"). To comply with the requirements of the Sarbanes Oxley Act, we expect these regulatory costs to increase in future years. Virtually all of the 9% decrease in operating expenses can be attributed to our business development, legal costs and other executive administrative costs that changed modestly during the 2014 period from the 2013 period, but are expected to increase in future periods due to the expansion of our brand into emerging markets.
Provision for Income Taxes
The provision for state income taxes relates primarily to average assets and capital which were not impacted by net operating losses.
Net Income per share
Our net income for the 2014 year end was $450,148 or $.003 per share versus a net income of $200,607 or $.001 per share for the 2013 year end. During the 2014 period, we increased our royalty revenue by $103,677. Our net income increased in 2014 by $249,541, primarily due to a settlement the Company received of $97,161, the new clubs' opening and a decrease in our operating costs, primarily due to the shift in business development and legal costs incurred. This material change from the 2014 period to the 2013 period is based on net income available to common shareholders divided by the weighted average of the common shares outstanding.
AI
