Scores Holding Company Reports 82% Revenue Decline and Net Loss in Q1 2023

Scores Holding Company, Inc. reported a significant decline in financial performance for the first quarter of 2023, with total revenue falling to $73,500, a decrease of approximately 82% from $414,000 in the same period of the previous year. The company recorded a net loss of $22,900, compared to a net income of $311,442 in the first quarter of 2022. This downturn is attributed primarily to a reduction in royalty revenue, which dropped from $414,000 to $73,500 year-over-year.

The company's balance sheet as of March 31, 2023, shows total assets of $50,940, a decrease from $58,186 at the end of 2022. Current liabilities increased to $284,135 from $263,981, driven by a rise in related party payables, which grew from $67,500 to $90,000. The accumulated deficit also widened to $6,899,498 from $6,876,598, reflecting ongoing challenges in generating sufficient revenue to cover operational costs.

In terms of operational developments, Scores Holding Company has indicated that the impact of the COVID-19 pandemic on its business is lessening, with all royalty-paying licensees having reopened. The company has noted an increase in interest from establishments looking to utilize the SCORES brand, suggesting potential for future growth. However, the company continues to face challenges, including a working capital deficit of $233,195, which raises concerns about its ability to sustain operations without additional financing.

Looking ahead, Scores Holding Company plans to focus on raising additional working capital through continued licensing of its brand. The company acknowledges that achieving adequate revenue levels to support its operations remains uncertain, and it may need to seek further financing to address its working capital requirements. The management's outlook emphasizes the need for strategic decisions to navigate the current market conditions and improve financial stability.