How about making some posts about the additional revenue coming in that was reported in the last quarter?
On February 13, 2015 we, together with our subsidiary SLC, filed an action against Southeast Show Clubs, LLC and Michael Tomkovich in the SCNY.
Defendants had utilized the “Scores” name and trademark in connection with their ownership and operation of adult entertainment clubs in Jacksonville and Palm
Beach, Florida and in Savannah, Georgia. In this action we sought damages for breach of contract in the amount of $900,000 plus interest, damages due to
defamation and tortious interference in connection with the use of the “Scores” trademark in the amount of $500,000, issuance of a permanent injunction
prohibiting defendants from using the “Scores” name and trademark with respect to the adult entertainment clubs they operate in Jacksonville and Palm Beach,
Florida and Savannah, Georgia and all websites controlled by defendants, and an accounting by defendants of all merchandise items sold by them containing the
“Scores” trademark. As of April 17, 2015 the parties settled this matter. Pursuant to the settlement, defendants agreed to pay us $150,000, payable in 13
installments. The first installment of $50,000 was paid upon finalization of the settlement, with 12 subsequent monthly payments of $8,333.33 commencing on
May 1, 2015. The defendants also executed consents to the entry of a permanent injunction against them prohibiting their continued use of the name and trademark
“Scores” at their clubs if either or both of the defendants default in their obligations under the settlement. In connection with the settlement, the parties entered into
an amendment of the July 18, 2013 License Agreement between them. The amendment, among other things, (i) removes the Palm Beach club from the license
agreement, (ii) provides that the license agreement shall only apply to the Jacksonville and Savannah nightclubs, (iii) requires the licensees to pay us a fixed
royalty of $5,000 per month for each club, commencing May 1, 2015, and (iv) requires that the Savannah nightclub and any related websites utilize the name
“Scores Presents.”
7
And....
Item 5. Other Information.
On April 20, 2015, we (through our subsidiary Scores Licensing Corp.) entered into a trademark license agreement with High Five Management Inc.,
granting it an exclusive, non-transferable license for the use of certain Scores Presents trademarks in its night club/restaurant in Greenville, South Carolina. The
license is for a term of five years, with five successive five year renewal terms. Upon the club becoming fully operational, we will receive royalty payments of
$1,250 per week. Pursuant to the agreement, SLC also granted the licensee a non-exclusive, non-transferable license to sell certain licensed products bearing our
trademarks.
On May 5, 2015, we entered into an amendment, effective as of January 1, 2015, to our management services agreement with Metropolitan Lumber,
Hardware and Building Supplies, Inc. Pursuant to the amendment, the fee we pay MLH for the management and other services it provides to us was increased from
$30,000 per year to $90,000 per year, payable quarterly in arrears. In addition, the agreement as amended provides that MLH will be eligible for a discretionary
cash bonus based on (i) MLH’s performance throughout the relevant fiscal year (or portion thereof) of the Company; and (ii) the Company’s performance
throughout such fiscal year (or portion thereof). The Board of Directors is responsible for establishing and implementing performance goals and a performancebased
bonus plan, and the amount of the bonus, if any, will be determined by the Board in accordance with such plan. The agreement as amended does not
guarantee MLH a bonus for any year (or portion thereof).
On June 17, 2015, we (through our subsidiary Scores Licensing Corp.) entered into a trademark license agreement with Dick S. Shappy, granting it an
exclusive, non-transferable license for the use of certain Scores trademarks in its night club/restaurant in Providence, Rhode Island. The license is for a term of five
years, with two successive five year renewal terms. The license agreement provides for fixed royalties at the rate of $10,000 per month. Pursuant to the agreement,
SLC also granted the licensee a non-exclusive, non-transferable license to sell certain licensed products bearing our trademarks.
Effective June 15, 2015, we (through our subsidiary Scores Licensing Corp.) entered into a trademark license agreement with CG Consulting LLC,
granting it an exclusive, non-transferable license for the use of certain Scores trademarks in its night club/restaurant in Columbus, Ohio. The license is for a term of
five years, with five successive five year renewal terms. Upon the earlier of the club becoming fully operational or three months from the date of the agreement, we
will receive royalty payments of $1,250 per week. After the first two years of the term of the agreement, the licensee shall pay us royalties equal to the greater of
4.99% of the licensee’s monthly revenue or $1,250 per week.
Effective July 24, 2015, we (through our subsidiary Scores Licensing Corp.) entered into a trademark license agreement with Funn House Productions
LLC, granting it an exclusive, non-transferable license for the use of certain Scores trademarks in its night club/restaurant in New Haven, Connecticut. The license
is for a term of five years, with five successive five year renewal terms. The license agreement provides for fixed royalties at the rate of $5,000 per month for the
first year of the agreement, increasing to $10,000 per month thereafter.
That will be a lot of money.............And you can talk a lot about that for sure........
