Scores Holdings (SCRH)

[otcbargains]

Interesting. That appears to be before they even signed the agreement. I found this in the 10K. So it appears they were open 3 months before they were expected to make their first payment. If that is the case and the rest are similar then there should be a whole bunch of new ones reporting revs in the 4th q for the first time.

On May 2, 2014, we (through our subsidiary SLC) entered into a trademark license agreement with Houston KP LLC, granting it an exclusive, non-transferable license for the use of certain Scores trademarks in its night club/restaurant in Houston, Texas. The license is for a term of five years, with five successive five year renewal terms. During the first two years of the agreement, commencing on July 31, 2014, we are entitled to receive $10,000 per month . After such 2 year period, we shall be due to receive, on a monthly basis, royalties equal to the greater of 4.99% of monthly net revenues or $10,000. Pursuant to the written agreement, SLC also granted the licensee a non-exclusive, non-transferable license to sell certain licensed products bearing our trademarks. As discussed in our Notes to the Consolidated Financial Statements, because of the tenuous nature of the gentlemen’s club industry in general and the resulting financial instability of this licensee in particular, the Company has implemented a policy of recognizing revenue for this specific entity as it is received rather than when it is earned. Houston accounted for 2% of royalty revenue during 2014.