Scores Holdings (SCRH)

[natstocks]

Trying to figure that one out. They booked 85K for each of the Jax and savannah clubs last q. It has been theorized that the entire 150K has been already booked.

I am not sure. It is possible that in addition to the 5K per month for each club they will also receive an additional $8,333.00 for the next 12 months.

They booked the entire $150K settlement as revenue, but have only received $50K as of June 30. The 12 monthly payments of $8,333 therefore will not show up as revenue, because they have already been recorded as such.

Therefore, to "normalize" Q2 you go from this:

$392K revenue
$267K net income

to this:

$242K revenue
$117K net income

I also think a better model of revs going forward would take into account the fact that, to date, there has always been a couple clubs not paying. Maybe you can assume that their licensees will actually pay 85% of what they're supposed to on the whole (just throwing a number out there, haven't looked at it in depth).