SCORES HOLDING CO INC
AI Executive Summary
AI-powered analysis of 10-Q filing content
Scores Holding remains an extremely small licensing operation with royalty revenue declining 28% year-over-year due to a collectability issue under ASC 606, though cost-cutting (elimination of insurance, reduced accounting fees) allowed net income to tick up slightly. The most notable development is the expanded disclosure of ineffective disclosure controls and material weaknesses in the financial close process, journal entry review, and account reconciliations, which the differential flags as a 30.4% change in the Controls & Procedures section. The company continues to operate with a stockholders' deficit and total assets of only $128,449, relying heavily on a handful of licensees and related-party transactions.
Red Flags Detected (7)
Disclosure controls and procedures explicitly deemed NOT EFFECTIVE as of March 31, 2025
Material weaknesses identified in financial statement close process, journal entry preparation/review, and account reconciliations
Revenue declined 28% ($73,500 to $52,800) due to a licensee's collectability issue under ASC 606 - suggests credit risk with a licensee
4 more red flags detected
Key Takeaways
Company remains a micro-cap shell-like licensing entity with minimal operating infrastructure
Cost reductions (insurance elimination, lower accounting fees) are masking underlying revenue decline
3 more takeaways
Filing Overview
What This Means
High Risk Filing: This company is showing signs of financial stress or significant operational challenges.
Deteriorating Trend: Conditions are worsening compared to previous filings. This may create opportunities for service providers.
Quarterly Report: Interim filing with unaudited financial data for the quarter.