Scores Holding Swings to $31,875 Profit in Q1 2024 on Lower Expenses
Scores Holding Co Inc, a royalty-based business, reported net income of $31,875 for the three months ended March 31, 2024, reversing a $22,900 loss in the same period a year earlier. Revenue held flat at $73,500 while operating expenses fell 57%.
Scores Holding Co Inc, a royalty-based business, swung to a net income of $31,875 for the three months ended March 31, 2024, compared with a net loss of $22,900 in the same quarter of 2023. The turnaround came as operating expenses dropped sharply while royalty revenue remained unchanged. Read more earnings reports.
The company reported royalty revenue of $73,500 for the quarter, flat year-over-year. General and administrative expenses fell 57% to $41,625 from $96,008 in the prior-year period, driving operating income of $31,875 compared with an operating loss of $22,508 a year earlier.
Interest expense was negligible at $392 in the year-ago quarter and absent in the current period. Net income per share was effectively zero due to rounding, based on 165.2 million shares outstanding in both periods.
Balance Sheet and Cash Position
Total assets stood at $95,291 as of March 31, 2024, down from $109,624 at December 31, 2023. Cash and cash equivalents declined to $29,291 from $46,624 over the same period. Trade receivables increased modestly to $66,000 from $63,000.
The company reported a stockholders' deficit of $587,800 at quarter-end, narrowing from a deficit of $619,675 at year-end 2023. The improvement reflects the quarterly profit, which reduced the accumulated deficit to $6.83 million from $6.87 million.
Total liabilities fell to $683,091 from $729,299. Accounts payable and accrued expenses rose to $189,091 from $175,799, while related party payables decreased to $80,000 from $135,000. Contract liabilities, classified as long-term, stood at $414,000, down slightly from $418,500.
Cash Flow
The company used $17,333 in operating activities during the quarter, compared with generating $5,645 in the prior-year period. The shift reflected a $55,000 reduction in related party payables and a $3,000 increase in trade receivables. Cash paid for interest totaled $587 during the quarter.
| Item | Q1 2024 | Q1 2023 |
|---|---|---|
| Royalty Revenue | $73,500 | $73,500 |
| General & Admin Expenses | $41,625 | $96,008 |
| Operating Income/(Loss) | $31,875 | ($22,508) |
| Net Income/(Loss) | $31,875 | ($22,900) |
| Cash & Equivalents (period-end) | $29,291 | $13,245 |
| Total Assets | $95,291 | — |
| Stockholders' Deficit | ($587,800) | ($676,195) |
Scores Holding maintains a business model centered on royalty income with minimal operating infrastructure, reflected in its lean asset base and ongoing deficit position despite the quarterly profit.