Scores Holdings (SCRH)

[dickmilde]

Looks like record sales for Q4 yet still a loss for the quarter.

So remind me again... With only 2 employees where is all the money going?

The answer is in the report... The CEO owns everything the company has a financial relationship with... Leases, consultants, travel expenses, office space, etc. He owns everything the company touches doing business and charges enough for his "services" to make sure nothing is left over.

Don't walk away from this stock... RUN !

The following is an example of only part of the CEO relationship with the company:

"On January 27, 2009, the Company entered into a licensing agreement with its affiliate through common ownership I.M. Operating LLC (“IMO”) for the use of the Scores brand name “Scores New York”. Robert M. Gans is the majority owner (72%) of IMO and is also the Company’s majority shareholder, and Howard Rosenbluth, the Company’s Treasurer and a Director, owns 2%. IMO owes the Company a royalty receivable of $144,698 and $144,698 as of December 31, 2016 and December 31, 2015, which has been fully reserved.

The Company also leases office space directly from Westside Realty of New York, Inc. (WSR), the owner of the West 27 th Street Building. The majority owner of WSR (80%) is Robert M. Gans. Since April 1, 2009, the monthly rent has been $2,500 per month including overhead costs. The Company owed WSR $0 and $0 in unpaid rents as of December 31, 2016 and December 31, 2015, respectively.

27

Effective January 1, 2013, the Company entered into a management services agreement with Metropolitan Lumber, Hardware and Building Supplies, Inc., pursuant to which Metropolitan Lumber Hardware and Building Supplies, Inc. provides management and other services to the Company, including the services of Robert M. Gans and Howard Rosenbluth to act as executive officers of the Company. In consideration of the services, the Company paid Metropolitan Lumber Hardware and Building Supplies, Inc. a fee in the amount of $30,000 per year. Effective May 5, 2015 the agreement was amended increasing the annual fee to $90,000. Effective January 1, 2017, the agreement was further amended to remove the requirement that the services of Robert M. Gans be provided under the agreement. In addition, Metropolitan Lumber Hardware and Building Supplies, Inc. shall be eligible for a discretionary cash bonus. The agreement may be terminated by either party upon ten days’ written notice. Mr. Gans is the sole owner of Metropolitan Lumber Hardware and Building Supplies, Inc. The Company owed $0 and $0 in unpaid management services as of December 31, 2016 and December 31, 2015, respectively.

The Company has accrued expenses of $9,074 due to Metropolitan Lumber Hardware and Building Supplies, Inc. The Company owes $9,074 and $0 as of December 31, 2016 and December 31, 2015, respectively."
From the 10K linked at I-Hub
http://ih.advfn.com/p.php?pid=nmona&article=74307790&symbol=SCRH