Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 14, 2016 | Sep. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | SCORES HOLDING CO INC | ||
Entity Central Index Key | 831,489 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | SCRH | ||
Entity Common Stock, Shares Outstanding | 165,186,144 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,509,806 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash | $ 515,994 | $ 127,253 |
Trade receivables - including affiliates, net | 280,119 | 324,410 |
Prepaid expenses | 11,437 | 11,268 |
Loan receivable | 0 | 34,844 |
Settlement receivable | 0 | 23,781 |
Total Current Assets | 807,550 | 521,556 |
TOTAL ASSETS | 807,550 | 521,556 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 255,509 | 105,254 |
Security deposit payable | 35,000 | 37,500 |
Note payable related party | 0 | 34,844 |
Accrued income tax payable | 49,400 | 0 |
Deferred revenue | 48,000 | 0 |
Settlement payable due to related party | 0 | 28,654 |
Total Current Liabilities | 387,909 | 206,252 |
Deferred revenue | 20,500 | 0 |
TOTAL LIABILITIES | 408,409 | 206,252 |
Commitments and Contingencies (Note 10) | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.0001 par value, 10,000,000 shares authorized, -0- issued and outstanding | 0 | 0 |
Common stock, $.001 par value; 500,000,000 shares authorized, 165,186,144 issued and 165,186,144 outstanding, respectively | 165,186 | 165,186 |
Additional paid-in capital | 6,058,117 | 6,058,117 |
Accumulated deficit | (5,824,162) | (5,907,999) |
Total stockholders' Equity | 399,141 | 315,304 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 807,550 | $ 521,556 |
CONSOLIDATED BALANCE SHEETS (pa
CONSOLIDATED BALANCE SHEETS (parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 165,186,144 | 165,186,144 |
Common stock, shares outstanding | 165,186,144 | 165,186,144 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | ||
Royalty Revenue | $ 1,180,064 | $ 835,240 |
Initiation Fee | 1,500 | 0 |
Total Revenue | 1,181,564 | 835,240 |
EXPENSES | ||
General and Administrative Expenses | 1,050,196 | 481,178 |
INCOME FROM OPERATIONS | 131,368 | 354,062 |
OTHER INCOME/(EXPENSE) | ||
Interest Income/(Expense), net | 1,869 | (1,075) |
Settlement | 0 | 97,161 |
TOTAL OTHER INCOME/(EXPENSE) | 1,869 | 96,086 |
NET INCOME BEFORE INCOME TAXES | 133,237 | 450,148 |
PROVISION FOR INCOME TAXES | 49,400 | 0 |
NET INCOME | $ 83,837 | $ 450,148 |
NET INCOME PER SHARE-Basic and Diluted (in dollars per share) | $ 0.001 | $ 0.003 |
WEIGHTED AVERAGE OF COMMON SHARES OUTSTANDING-Basic and Diluted (in shares) | 165,186,144 | 165,186,144 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 83,837 | $ 450,148 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Reserve for bad debt | 266,807 | 0 |
Changes in assets and liabilities: | ||
Licensee receivable | (222,516) | (135,422) |
Prepaid expenses | (169) | (51) |
Security deposit payable | (2,500) | 27,500 |
Accounts payable and accrued expenses | 150,255 | (25,206) |
Accrued income tax payable | 49,400 | 0 |
Deferred revenue | 68,500 | 0 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 393,614 | 316,969 |
CASH FLOW FROM FINANCING ACTIVITIES: | ||
Related party payables | 0 | (143,775) |
Settlement receivable | 23,781 | 138,608 |
Loan receivable | 34,844 | (1,696) |
Settlement payable | (28,654) | (189,071) |
Loan payable | (34,844) | 1,696 |
NET CASH USED IN FINANCING ACTIVITIES | (4,873) | (194,238) |
NET INCREASE IN CASH | 388,741 | 122,731 |
Cash and cash equivalents - beginning of year | 127,253 | 4,522 |
Cash and cash equivalents - end of year | 515,994 | 127,253 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | 1,418 | 15,839 |
Cash paid for income taxes | $ 1,276 | $ 1,239 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2013 | $ (134,844) | $ 165,186 | $ 6,058,117 | $ (6,358,147) |
Balance (in shares) at Dec. 31, 2013 | 165,186,124 | |||
Common stock adjustment for rounding | 0 | $ 0 | 0 | 0 |
Common stock adjustment for rounding (in shares) | 20 | |||
Net Income | 450,148 | $ 0 | 0 | 450,148 |
Balance at Dec. 31, 2014 | 315,304 | $ 165,186 | 6,058,117 | (5,907,999) |
Balance (in shares) at Dec. 31, 2014 | 165,186,144 | |||
Net Income | 83,837 | $ 0 | 0 | 83,837 |
Balance at Dec. 31, 2015 | $ 399,141 | $ 165,186 | $ 6,058,117 | $ (5,824,162) |
Balance (in shares) at Dec. 31, 2015 | 165,186,144 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization [Text Block] | Note 1. Organization Scores Holding Company, Inc. and subsidiary (the “Company”) is a Utah corporation, formed in September 1981 and located in New York, NY. Originally incorporated as Adonis Energy, Inc., the Company adopted its current name in July 2002. The Company is a licensing company that exploits the “SCORES” name and trademark for licensing options. The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. The consolidated financial statements of the Company include the accounts of Scores Licensing Corp. |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Principles [Text Block] | Note 2. Summary of Significant Accounting Principles BASIS OF PRESENTATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Inter-company items and transactions have been eliminated in consolidation. The Company considers all highly liquid temporary cash investments, with a maturity of three months or less when purchased, to be cash equivalents. There are times when cash may exceed $ 250,000 The carrying value of cash and accrued expenses, if applicable, approximate their fair values based on the short-term maturity of these instruments. The carrying amounts of debt were also estimated to approximate fair value. The Company utilizes the methods of fair value measurement as described in ASC 820 to value its financial assets and liabilities. As defined in ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Accounts deemed uncollectible are applied against the allowance for doubtful accounts. Allowance for doubtful accounts had a balance of $- 266,807 0 . The Company accounts for the plans under the recognition and measurement provisions of Accounting Standards Codification (ASC) Topic 718 Compensation Stock Compensation There were no stock options or warrants issued during the years ended December 31, 2015 and 2014, hence the Company has recorded no compensation expense. If the Company were to issue equity rights for compensation, then the Company would recognize compensation expense under Topic 718 over the requisite service period using the Black-Scholes model for equity rights granted. The Company records revenues earned as royalties under its license agreements as they are earned over the term of the license agreements. The terms of the royalties earned under these license agreements vary from a flat monthly fee to a percentage of the revenues of the licensee on a monthly basis. If a license agreement is terminated then the remaining unearned balance of the deferred revenues are recorded as earned if applicable. As a result of the tenuous nature of the gentlemen’s club industry in general and the resulting financial instability of several of our new licensees the Company has implemented a policy of recognizing revenue for these specific entities as it is received rather than when it is earned. Once our relationship with them has been more firmly established and payments have been made regularly and on time we will report these revenues when earned. The Company accounts for income taxes in accordance with ASC 740-10-25, “Accounting for Income Taxes”. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company has net operating loss carryforwards of approximately $ 4,920,000 which expire in the years 2020 through 2028 400,000 During 2015, we determined the Company has lost cumulatively $ 1,780,000 1,250,000 130,000 400,000 utilized up to $30,000 per year through 2028 2015 2014 Deferred tax assets: Net operating loss carryforward $ 400,000 $ 1,850,000 Allowance for doubtful accounts 118,000 - Less valuation allowance (518,000) (1,850,000) Net deferred tax asset $ - $ - 34 2015 2014 Tax (benefit) at statutory rate $ 46,000 $ 153,000 State and local taxes 14,000 46,000 Permanent differences - - Change in valuation allowance (10,600) (199,000) Tax due $ 49,400 $ - Under ASC 260-10-45, “Earnings Per Share”, basic income (loss) per common share is computed by dividing the income (loss) applicable to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation. Diluted income (loss) per common share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Accordingly, the weighted average number of common shares outstanding for the years ended December 31, 2015 and 2014, respectively, is the same for purposes of computing both basic and diluted net income per share for such years. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company is charged a monthly fee for operating expenses and overhead as a result of the use of a shared facility and employees of an affiliate. The Company earns predominately royalty revenues from 16 licensees. With regards to 2015, concentrations of sales from 7 licensees range from 10 14 77 12 26 84 10 22 24 26 With regards to 2014, concentrations of sales from 6 licensees range from 11 18 88 18 34 71 11 13 18 18 34 In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers”. In August 2015, FASB issued Accounting Standards Update (“ASU”) No.2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” All new accounting pronouncements issued but not yet effective or adopted have been deemed not to be relevant to us, hence are not expected to have any impact once adopted. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 3. Related-Party Transactions Transactions with Common ownership affiliates: On January 24, 2006, the Company entered into a licensing agreement with AYA International, Inc. (“AYA”) granting AYA the right to use our trademarks in connection with its online video chat website, “Scoreslive.com.” The agreement with AYA provides for royalty payments to be made directly to the Company at the rate of 4.99 80 122,109 111,279 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 2 144,698 59,935 The Company also leases office space directly from Westside Realty of New York, Inc. (WSR), the owner of the West 27 th 80 2,500 0 0 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 90,000 0 0 In December 2015, the Company accrued a $180,000 bonus to Robert Gans which was paid in February 2016. Effective December 9, 2013, we granted an exclusive, non-transferable license for the use of the “Scores Atlantic City” name to Star Light Events LLC (“Star Light”) for its gentlemen’s club in Atlantic City, New Jersey. Royalties under this license are payable at the rate of $ 10,000 92.165 1 130,000 60,000 On December 9, 2013, the Company entered into a license agreement with its subsidiary, SLC, granting SLC the exclusive right to use certain trademarks, including the “Scores” stylized trademark, in connection with certain goods and services. The grant of license also includes the right to issue sublicenses to third parties, subject to the approval of the Company. Pursuant to the agreement, SLC shall pay to the Company a royalty, as determined by the Company, such as a percentage of net revenue or a flat fee, received in connection with the provision of services and/or sale of goods using the trademarks. SLC may also pay a percentage, as determined by the Company, of all royalties received by SLC under any sublicense agreements. SLC and any sublicensees are to adhere to quality standards as set by the Company, and the Company has the right to inspect all facilities and approve all promotional and marketing materials as well as any related packaging. The agreement has a one-year term with automatic one-year renewals, subject to either party’s election to terminate the agreement at least thirty days prior to such renewal. The Company also has the right to terminate the agreement, with immediate effect, upon the occurrence of certain events. The license is subject to any pre-existing license agreements as of the date of the agreement. The total amounts due to the various related parties as of December 31, 2015 and December 31, 2014 was $ 180,000 0 396,807 231,214 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets [Text Block] | Note 4. Intangible Assets Trademark In connection with the acquisition of Scores Licensing Company (“SLC”) as discussed above, the Company acquired the trademark to the name "SCORES". This trademark had a gross recorded value at December 31, 2008 of $ 878,318 250,000 The Company believes that the carrying amount of the “Scores” trademark exceeds its fair or net present value as of December 31, 2015 and 2014. |
Licensees
Licensees | 12 Months Ended |
Dec. 31, 2015 | |
Licenses [Abstract] | |
Licenses Disclosure [Text Block] | Note 5. Licensees The Company has 20 license agreements which were obtained between 2003 and 2015; Stone Park Entertainment Group, Inc. known as “Scores Chicago”, Club 2000 Eastern Avenue Inc. known as “Scores Baltimore”, Silver Bourbon, Inc., I.M Operating LLC known as “IMO”, Tampa Food and Entertainment Inc., Norm A Properties, LLC, Swan Media Group, Inc. (formerly AYA International, Inc.), South East Clubs (which includes Savannah and Jacksonville), Starlight Events LLC known as “Scores Atlantic City”, Scores Licensing Corp known as “SLC”, Houston KP LLC, Parallax Management Corporation known as “Scores Gary”, Manhattan Fashion, L.L.C. known as “Scores Harvey”, TWDDD, Inc. known as “Scores Mooresville”, Greenville, South Carolina; Columbus, Ohio; Providence, Rhode Island; New Haven, Connecticut, Palm Springs, Florida and Queens, New York. See Note 10 for litigation relating to a few of these clubs. “IMO’s” members are our majority shareholder, Robert M. Gans ( 72 2 80 7 13 80 1 5 92.165 10 11 |
Settlement_Note Receivables
Settlement/Note Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs Capitalized Prepaid And Other Assets [Text Block] | Note 6. Settlement/Note Receivables On September 26, 2011, the Company, Richard Goldring and Elliot Osher (Goldring and Osher were formerly two of the Company’s principal shareholders) (collectively the “Defendants”) and Sari Diaz et al. (the “Plaintiffs”) entered into a Court approved Joint Stipulation of Settlement and Release (the “Settlement Agreement”) relating to a purported class action and collective action on behalf of all tipped employees filed by Plaintiffs, pursuant to which Defendants agreed to make a settlement payment of $ 450,000 300,000 15,600 In a settlement payment agreement among the Company, Goldring and Osher, the Company agreed to advance all of the Defendants’ obligations under the Settlement Agreement and to pay $ 64,500 440,000 5 11,965 2,400,000 0 23,781 On December 29, 2011 the Company entered into a Promissory Note with Goldring for $ 30,000 5 11,965 0 34,844 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Revenue [Abstract] | |
Deferred Revenue Amortization Life [Text Block] | Note 7. Deferred Revenue License agreements sometimes include Initiation/Inception Fees. These fees are recorded as deferred revenue and amortizing over the life of the agreements, usually five years |
Settlement_Note Payable
Settlement/Note Payable | 12 Months Ended |
Dec. 31, 2015 | |
Account Payables And Accrued Liabilities [Abstract] | |
Notes Payable [Text Block] | Note 8. Settlement/Note Payable As discussed in Note 6 regarding the settlement receivable it should be noted that Mr. Gans (the Company’s Chief Executive Officer and majority stockholder) advanced $ 560,151 30,000 0 28,654 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 9. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses as of December 31, 2015 is comprised of accrued payroll and taxes of $ 189,742 22,050 20,192 2,452 6,900 5,000 24,000 60,254 4,499 6,500 5,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 10. Commitments and Contingencies The Company records $ 7,500 The Company currently leases office space from the Westside Realty of New York which is owned and operated by Robert Gans our majority shareholder, for $ 2,500 On or about March 7, 2014, Kiana Love, a former entertainer and masseuse at The Penthouse Executive Club and Scores New York, both located in New York, NY, filed a civil lawsuit in the SDNY against us, The Executive Club, LLC, Go West Entertainment, Inc., Scores Entertainment, Inc., Entertainment Management Services, Inc., 333 East 60th Street., Inc., I.M. Operating, LLC, Richard Goldring, Elliot Osher, Robert Gans and Mark Yackow (collectively “Defendants”), alleging, for the time during which she performed as a masseuse, violations of the state and federal wage and hour laws, including the New York Labor Law and Fair Labor Standards Act, based upon allegations of failure to pay minimum wage, uniform related expenses, and allegations of improper wage deductions and tip misappropriation as well as record keeping violations. The lawsuit further alleged that at all material times Defendants were employers of Ms. Love, the plaintiff, while she performed massage services at Scores New York as well as The Penthouse Executive Club. The lawsuit sought unspecified compensatory damages for plaintiff’s alleged loss of past wages and reimbursement of allegedly unlawful deductions. Without any party admitting liability, the parties settled the referenced litigation for approximately $ 21,403.65 April 13, 2015 On February 13, 2015 we, together with our subsidiary SLC, filed an action against Southeast Show Clubs, LLC and Michael Tomkovich in the Supreme Court of the State of New York for the County of New York. Defendants had utilized the “Scores” name and trademark in connection with their ownership and operation of adult entertainment clubs in Jacksonville and Palm Beach, Florida and in Savannah, Georgia. In this action we sought damages for breach of contract in the amount of $900,000 plus interest, damages due to defamation and tortuous interference in connection with the use of the “Scores” trademark in the amount of $500,000 Pursuant to the settlement, defendants agreed to pay us $150,000, payable in 13 installments. The first installment of $50,000 was paid upon finalization of the settlement, with 12 subsequent monthly payments of $8,333.33 commencing on May 1, 2015 5,000 On February 19, 2015 we, together with our subsidiary SLC, filed an action against Norm A Properties LLC in the Supreme Court of the State of New York for the County of New York. Defendant utilizes the “Scores” name and trademark in connection with its ownership and operation of and adult entertainment club in Detroit, Michigan. In this action we sought damages for breach of contract in the amount of $ 110,000 117,646.92 There are no other material legal proceedings pending to which the Company or any of its property is subject, nor to our knowledge are any such proceedings threatened. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 11. SUBSEQUENT EVENTS On March 14, 2016 three individuals purporting to be adult entertainers who performed at Scores New York commenced a lawsuit in the SDNY on behalf of themselves and a putative collective and class. The defendants in the action, in addition to us, include IMO, Robert Gans and Mark Yackow. The lawsuit alleges violation of federal and state wage and hour laws, including, inter alia |
Summary of Significant Accoun18
Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Inter-company items and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents The Company considers all highly liquid temporary cash investments, with a maturity of three months or less when purchased, to be cash equivalents. There are times when cash may exceed $ 250,000 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying value of cash and accrued expenses, if applicable, approximate their fair values based on the short-term maturity of these instruments. The carrying amounts of debt were also estimated to approximate fair value. The Company utilizes the methods of fair value measurement as described in ASC 820 to value its financial assets and liabilities. As defined in ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
Licensee Receivable And Reserves [Policy Text Block] | Licensee receivable and reserves Accounts deemed uncollectible are applied against the allowance for doubtful accounts. Allowance for doubtful accounts had a balance of $- 266,807 0 . |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock Based Compensation The Company accounts for the plans under the recognition and measurement provisions of Accounting Standards Codification (ASC) Topic 718 Compensation Stock Compensation There were no stock options or warrants issued during the years ended December 31, 2015 and 2014, hence the Company has recorded no compensation expense. If the Company were to issue equity rights for compensation, then the Company would recognize compensation expense under Topic 718 over the requisite service period using the Black-Scholes model for equity rights granted. |
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition The Company records revenues earned as royalties under its license agreements as they are earned over the term of the license agreements. The terms of the royalties earned under these license agreements vary from a flat monthly fee to a percentage of the revenues of the licensee on a monthly basis. If a license agreement is terminated then the remaining unearned balance of the deferred revenues are recorded as earned if applicable. As a result of the tenuous nature of the gentlemen’s club industry in general and the resulting financial instability of several of our new licensees the Company has implemented a policy of recognizing revenue for these specific entities as it is received rather than when it is earned. Once our relationship with them has been more firmly established and payments have been made regularly and on time we will report these revenues when earned. |
Income Tax, Policy [Policy Text Block] | The Company accounts for income taxes in accordance with ASC 740-10-25, “Accounting for Income Taxes”. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company has net operating loss carryforwards of approximately $ 4,920,000 which expire in the years 2020 through 2028 400,000 During 2015, we determined the Company has lost cumulatively $ 1,780,000 1,250,000 130,000 400,000 utilized up to $30,000 per year through 2028 2015 2014 Deferred tax assets: Net operating loss carryforward $ 400,000 $ 1,850,000 Allowance for doubtful accounts 118,000 - Less valuation allowance (518,000) (1,850,000) Net deferred tax asset $ - $ - 34 2015 2014 Tax (benefit) at statutory rate $ 46,000 $ 153,000 State and local taxes 14,000 46,000 Permanent differences - - Change in valuation allowance (10,600) (199,000) Tax due $ 49,400 $ - |
Earnings Per Share, Policy [Policy Text Block] | Income per Share Under ASC 260-10-45, “Earnings Per Share”, basic income (loss) per common share is computed by dividing the income (loss) applicable to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation. Diluted income (loss) per common share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Accordingly, the weighted average number of common shares outstanding for the years ended December 31, 2015 and 2014, respectively, is the same for purposes of computing both basic and diluted net income per share for such years. |
Use of Estimates, Policy [Policy Text Block] | Accounting Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company is charged a monthly fee for operating expenses and overhead as a result of the use of a shared facility and employees of an affiliate. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk The Company earns predominately royalty revenues from 16 licensees. With regards to 2015, concentrations of sales from 7 licensees range from 10 14 77 12 26 84 10 22 24 26 With regards to 2014, concentrations of sales from 6 licensees range from 11 18 88 18 34 71 11 13 18 18 34 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers”. In August 2015, FASB issued Accounting Standards Update (“ASU”) No.2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” All new accounting pronouncements issued but not yet effective or adopted have been deemed not to be relevant to us, hence are not expected to have any impact once adopted. |
Summary of Significant Accoun19
Summary of Significant Accounting Principles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2015 2014 Deferred tax assets: Net operating loss carryforward $ 400,000 $ 1,850,000 Allowance for doubtful accounts 118,000 - Less valuation allowance (518,000) (1,850,000) Net deferred tax asset $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 34 2015 2014 Tax (benefit) at statutory rate $ 46,000 $ 153,000 State and local taxes 14,000 46,000 Permanent differences - - Change in valuation allowance (10,600) (199,000) Tax due $ 49,400 $ - |
Summary of Significant Accoun20
Summary of Significant Accounting Principles (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 400,000 | $ 1,850,000 |
Allowance for doubtful accounts | 118,000 | 0 |
Less valuation allowance | (518,000) | (1,850,000) |
Net deferred tax asset | $ 0 | $ 0 |
Summary of Significant Accoun21
Summary of Significant Accounting Principles (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting policies [Line Items] | ||
Tax (benefit) at statutory rate | $ 46,000 | $ 153,000 |
State and local taxes | 14,000 | 46,000 |
Permanent differences | 0 | 0 |
Change in valuation allowance | (10,600) | (199,000) |
Tax due | $ 49,400 | $ 0 |
Summary of Significant Accoun22
Summary of Significant Accounting Principles (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2001 | |
Accounting policies [Line Items] | |||
Cash, FDIC Insured Amount | $ 250,000 | ||
Allowance for Doubtful Accounts Receivable | (118,000) | $ 0 | |
Operating Loss Carryforwards | $ 4,920,000 | $ 1,780,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | |
Operating Loss Carryforwards Expiration Dates 1 | which expire in the years 2020 through 2028 | ||
Deferred Tax Assets, Valuation Allowance | $ 518,000 | $ 1,850,000 | |
Increase (Decrease) in Deferred Income Taxes | 1,250,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Total | $ 400,000 | $ 1,850,000 | |
Operating Loss Carryforwards, Limitations on Use | utilized up to $30,000 per year through 2028 | ||
Increase Decrease In Deferred Tax Assets Operating Loss Carry Forwards | $ 130,000 | ||
Merchandise Sales - 1 License [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Merchandise Receivables - 3 Licenses [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 26.00% | 71.00% | |
Merchandise Receivables - 3 Licenses [Member] | Minimum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 22.00% | 18.00% | |
Merchandise Receivables - 3 Licenses [Member] | Maximum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 24.00% | 34.00% | |
Merchandise Sales - 6 Licenses [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 88.00% | ||
Merchandise Sales - 6 Licenses [Member] | Minimum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 11.00% | ||
Merchandise Sales - 6 Licenses [Member] | Maximum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 18.00% | ||
Merchandise Sales - 2 Licenses [Member] | Minimum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 11.00% | ||
Merchandise Sales - 2 Licenses [Member] | Maximum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 13.00% | ||
Merchandise Receivables - 1st of 3 Licencees [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 18.00% | ||
Merchandise Receivables - 2nd of 3 Licencees [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 18.00% | ||
Merchandise Receivables - 3rd of 3 Licencees [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 34.00% | ||
Merchandise Receivables - 4 Licenses [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 84.00% | ||
Merchandise Receivables - 4 Licenses [Member] | Minimum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 12.00% | ||
Merchandise Receivables - 4 Licenses [Member] | Maximum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 26.00% | ||
Merchandise Sales - 7 Licenses [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 77.00% | ||
Merchandise Sales - 7 Licenses [Member] | Minimum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Merchandise Sales - 7 Licenses [Member] | Maximum [Member] | |||
Accounting policies [Line Items] | |||
Concentration Risk, Percentage | 14.00% |
Related-Party Transactions (Det
Related-Party Transactions (Details Textual) - USD ($) | Dec. 09, 2013 | Jan. 31, 2015 | Jan. 31, 2013 | Jan. 24, 2006 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2014 | Jan. 27, 2009 |
Related Party Transaction [Line Items] | ||||||||
Due To Related Parties, Current | $ 180,000 | $ 0 | ||||||
Royalty Payment Rate On Gross Revenue | 4.99% | |||||||
Royalties And Expenses Payable, Related Party | 122,109 | 111,279 | ||||||
Due from Related Parties, Current | 396,807 | 231,214 | ||||||
License Agreement Selling Price Description | Starlight will purchase the licensed products from us or our affiliates at our cost plus 25%. | |||||||
Westside Realty of New York Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Rent Per Month | 2,500 | |||||||
Rent Payable, Related Party | $ 0 | 0 | ||||||
Scores New York [Member] | Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 2.00% | |||||||
Star Light Evens LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Royalties Payable Per Month | $ 10,000 | |||||||
Star Light Evens LLC [Member] | Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 1.00% | |||||||
Star Light Evens LLC [Member] | Royalty Receivable [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to Affiliate | $ 130,000 | 60,000 | ||||||
I.M. Operating LLC [Member] | Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 2.00% | |||||||
I.M. Operating LLC [Member] | Royalty Receivable [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to Affiliate | $ 144,698 | 59,935 | ||||||
Robert M. Gans [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Accrued Bonuses, Current | $ 180,000 | |||||||
Robert M. Gans [Member] | Westside Realty of New York Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 80.00% | |||||||
Robert M. Gans [Member] | Scores New York [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 72.00% | 72.00% | ||||||
Robert M. Gans [Member] | Star Light Evens LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 92.165% | |||||||
Robert M. Gans [Member] | Swan Media Group, Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 80.00% | |||||||
Metropolitan Lumber [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Management Services, Fee Amount Per Year | $ 90,000 | $ 30,000 | ||||||
Management Services, Fee Payable | $ 0 | $ 0 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - Trademarks [Member] | 12 Months Ended |
Dec. 31, 2008USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Assets, Net (Excluding Goodwill) | $ 878,318 |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Finite-lived Intangible Assets Acquired | $ 250,000 |
Licensees (Details Textual)
Licensees (Details Textual) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Jan. 27, 2009 | |
I.M. Operating LLC [Member] | |||
Licenses [Line Items] | |||
Percentage Of Royalty Revenue | 7.00% | 13.00% | |
I.M. Operating LLC [Member] | Director [Member] | |||
Licenses [Line Items] | |||
Equity Method Investment, Ownership Percentage | 2.00% | ||
Westside Realty of New York Inc [Member] | Robert M. Gans [Member] | |||
Licenses [Line Items] | |||
Equity Method Investment, Ownership Percentage | 80.00% | ||
Swan Media Group, Inc [Member] | |||
Licenses [Line Items] | |||
Percentage Of Royalty Revenue | 1.00% | 5.00% | |
Swan Media Group, Inc [Member] | Robert M. Gans [Member] | |||
Licenses [Line Items] | |||
Equity Method Investment, Ownership Percentage | 80.00% | ||
Scores Atlantic City [Member] | |||
Licenses [Line Items] | |||
Percentage Of Royalty Revenue | 10.00% | 11.00% | |
Scores Atlantic City [Member] | Robert M. Gans [Member] | |||
Licenses [Line Items] | |||
Equity Method Investment, Ownership Percentage | 92.165% | ||
Scores New York [Member] | Director [Member] | |||
Licenses [Line Items] | |||
Equity Method Investment, Ownership Percentage | 2.00% | ||
Scores New York [Member] | Robert M. Gans [Member] | |||
Licenses [Line Items] | |||
Equity Method Investment, Ownership Percentage | 72.00% | 72.00% |
Settlement_Note Receivables (De
Settlement/Note Receivables (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 26, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 29, 2011 | Sep. 14, 2009 | |
Settlement and Note Receivables [Line Items] | |||||
Loss Contingency Settlement Payment By Defendant | $ 450,000 | ||||
Loss Contingency Agreement, Payroll Distributions | 300,000 | ||||
Loss Contingency Settlement, Additional Payment By Defendant | 15,600 | ||||
Loss Contingency Settlement Agreement, Advances To Defendant | 64,500 | ||||
Loss Contingency Settlement, Amount Receivable | $ 440,000 | ||||
Loss Contingency Settlement, Interest Rate On Receivables | 5.00% | ||||
Loss Contingency Settlement Agreement Amount Receivable Per Installment | $ 11,965 | ||||
Loss Contingency Settlement, Note Receivable | $ 2,400,000 | ||||
Settlement Assets Current And Noncurrent | $ 0 | $ 23,781 | |||
Mr. Goldring [Member] | |||||
Settlement and Note Receivables [Line Items] | |||||
Loss Contingency Settlement Agreement Amount Receivable Per Installment | $ 11,965 | ||||
Promissory Note [Member] | |||||
Settlement and Note Receivables [Line Items] | |||||
Debt Instrument, Face Amount | $ 30,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||
Notes Payable, Current | $ 0 | $ 34,844 |
Deferred Revenue (Details Textu
Deferred Revenue (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Revenue Arrangement [Line Items] | |
Deferred Revenue Amortization Period | 5 years |
Settlement_Note Payable (Detail
Settlement/Note Payable (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Account Payables And Accrued Liabilities [Line Items] | ||
Settlement Liability, Outstanding | $ 0 | $ 28,654 |
Mr. Gans [Member] | ||
Account Payables And Accrued Liabilities [Line Items] | ||
Advance For Settlement Of Litigation | 560,151 | |
Mr. Goldring [Member] | ||
Account Payables And Accrued Liabilities [Line Items] | ||
Loan Amount | $ 30,000 |
Accounts Payable and Accrued 29
Accounts Payable and Accrued Expenses (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Line Items] | ||
Accrued Legal Fees Current | $ 20,192 | $ 60,254 |
Accrued Professional Fees, Current | 22,050 | 24,000 |
Other Accrued Liabilities, Current | 5,000 | 5,000 |
Accrued Filing Fees Current | 2,452 | 4,499 |
Accrued Marketing Costs, Current | 6,900 | $ 6,500 |
Accrued Payroll Taxes, Current | $ 189,742 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2015 | Apr. 17, 2015 | Feb. 19, 2015 | Feb. 13, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Commitments [Line Items] | ||||||
Litigation Settlement, Amount | $ 0 | $ 97,161 | ||||
Loss Contingency, Damages Sought | amount of $900,000 plus interest, damages due to defamation and tortuous interference in connection with the use of the Scores trademark in the amount of $500,000 | |||||
Loss Contingency, Settlement Agreement, Terms | Pursuant to the settlement, defendants agreed to pay us $150,000, payable in 13 installments. The first installment of $50,000 was paid upon finalization of the settlement, with 12 subsequent monthly payments of $8,333.33 commencing on May 1, 2015 | |||||
Loss Contingency Defendant Awarding Total | $ 117,646.92 | |||||
Defendants [Member] | Settled Litigation [Member] | ||||||
Other Commitments [Line Items] | ||||||
Litigation Settlement, Amount | $ 21,403.65 | |||||
Loss Contingency, Date of Dismissal | Apr. 13, 2015 | |||||
Norm A Properties LLC [Member] | ||||||
Other Commitments [Line Items] | ||||||
Loss Contingency, Damages Sought, Value | $ 110,000 | |||||
Southeast Show Clubs, LLC and Michael Tomkovich [Member] | Settled Litigation [Member] | ||||||
Other Commitments [Line Items] | ||||||
Monthly Royalty Fee | $ 5,000 | |||||
Robert Gan [Member] | ||||||
Other Commitments [Line Items] | ||||||
Lease Amount Per Month | $ 2,500 | |||||
Metropolitan Lumber [Member] | ||||||
Other Commitments [Line Items] | ||||||
Contributed Services Rent Per Month | $ 7,500 |