Scores Holdings (SCRH)

[otcbargains]

I don't know why the loan was made but it has been paid back with interest.

It is impossible to know how many licensees will be included in the Q4 filing because we don't know the terms of the licenses.

Only 11 paid royalties this past q despite there being 20 licensees.

Last q said they had 14 but only recd revs from 9 of them. Going on memory and I could be wrong.

There seems to be a lag time between signing licensee agreements and receiving revs from them. I can only assume there is some language in the licensing agreements that gives them a pass for a period of time or each one might have different parameters.

I haven't been able to figure it out.

I did notice something new that I like with their most recent one signed though. It looks like Palm springs is being forced to pay up front for a significant portion of their royalties.

Effective August 31, 2015, we (through our subsidiary Scores Licensing Corp.) entered into a trademark license agreement with Palm Springs Grill LLC, granting it an exclusive, non-transferable license for the use of certain Scores trademarks in its night club/restaurant in Palm Springs, Florida. The license is for a term of five years, with five successive five year renewal terms. The license agreement provides for a $20,000 initial fee for the first six months of operation of the night club (beginning on October 1 st ) and $40,000 as prepayment of a fixed royalty fee of $5,000 per month for April 1, 2016 through November 30, 2016. Thereafter, licensee will pay a fixed royalty of $5,000 per month until April 1, 2017, increasing to $10,000 per month thereafter. As of September 30, 2015, this club is not yet operating.


This is an interesting development and I wonder if it is just this one or if it is the way they are going to work all of them in the future.

I have no idea how many licensees will contribute in the 4th q. If you have been able to figure it out, I would love to hear it.

I believe the 3 slated to open in North Carolina are existing clubs that are rebranding so those might contribute quicker once they are brought on board. It looks like Queens NY is no 24 so I have no idea what was going on with that magazine or if it is even legit.

How many licensees do you think will appear in the 4th q?

All I know is eventually there will be 24. I just dont know when. Right now there are 11 paying revs. When there are 24 obviously the revs and profits will be much better. It is just a matter of holding and waiting. IMO