RCI Hospitality (RICK) 10-Q 10 Aug 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jun. 30, 2020	Aug. 07, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--09-30
Entity File Number	001-13992
Entity Registrant Name	RCI HOSPITALITY HOLDINGS, INC.
Entity Central Index Key	0000935419
Entity Tax Identification Number	76-0458229
Entity Incorporation, State or Country Code	TX
Entity Address, Address Line One	10737 Cutten Road
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77066
City Area Code	281
Local Phone Number	397-6730
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	RICK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,125,281

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Current assets
Cash and cash equivalents	$ 14,795	$ 14,097
Accounts receivable, net	5,529	6,289
Current portion of notes receivable	219	954
Inventories	2,627	2,598
Prepaid insurance	1,415	5,446
Other current assets	1,752	2,521
Assets held for sale	2,013	2,866
Total current assets	28,350	34,771
Property and equipment, net	181,960	183,956
Operating lease right-of-use assets, net	25,962
Notes receivable, net of current portion	2,896	4,211
Goodwill	47,109	53,630
Intangibles, net	73,224	75,951
Other assets	873	1,118
Total assets	360,374	353,637
Current liabilities
Accounts payable	3,955	3,810
Accrued liabilities	10,286	14,644
Current portion of long-term debt, net	17,249	15,754
Current portion of operating lease liabilities	1,586
Total current liabilities	33,076	34,208
Deferred tax liability, net	20,141	21,658
Long-term debt, net of current portion and debt discount and issuance costs	125,487	127,774
Operating lease liabilities, net of current portion	25,863
Other long-term liabilities	372	1,696
Total liabilities	204,939	185,336
Commitments and contingencies (Note 10)
Equity
Preferred stock, $0.10 par value per share; 1,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value per share; 20,000 shares authorized; 9,125 and 9,591 shares issued and outstanding as of June 30, 2020 and September 30, 2019, respectively	91	96
Additional paid-in capital	52,829	61,312
Retained earnings	102,837	107,049
Total RCIHH stockholders’ equity	155,757	168,457
Noncontrolling interests	(322)	(156)
Total equity	155,435	168,301
Total liabilities and equity	$ 360,374	$ 353,637

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Sep. 30, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	9,125,000	9,591,000
Common stock, shares outstanding	9,125,000	9,591,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues
Total revenues	$ 14,721	$ 47,027	$ 103,541	$ 135,876
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	2,390	6,701	14,948	18,705
Salaries and wages	5,421	13,164	30,866	37,168
Selling, general and administrative	8,908	14,895	39,889	43,263
Depreciation and amortization	2,235	2,465	6,696	6,718
Other charges (gains), net	424	(172)	8,588	(2,250)
Total operating expenses	19,378	37,053	100,987	103,604
Income (loss) from operations	(4,657)	9,974	2,554	32,272
Other income (expenses)
Interest expense	(2,459)	(2,543)	(7,403)	(7,709)
Interest income	80	92	263	218
Unrealized gain (loss) on equity securities	31	(38)	(103)	(408)
Income (loss) before income taxes	(7,005)	7,485	(4,689)	24,373
Income tax expense (benefit)	(1,437)	1,806	(1,262)	5,547
Net income (loss)	(5,568)	5,679	(3,427)	18,826
Net loss (income) attributable to noncontrolling interests	94	(41)	135	(109)
Net income (loss) attributable to RCIHH common stockholders	$ (5,474)	$ 5,638	$ (3,292)	$ 18,717
Earnings (loss) per share
Basic and diluted	$ (0.60)	$ 0.59	$ (0.36)	$ 1.94
Weighted average number of common shares outstanding
Basic and diluted	9,125,000	9,620,000	9,224,000	9,671,000
Dividends per share	$ 0.03	$ 0.03	$ 0.10	$ 0.09
Sales of Alcoholic Beverages [Member]
Revenues
Total revenues	$ 7,623	$ 19,570	$ 45,285	$ 56,366
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	1,245	4,015	8,826	11,541
Sales of Food and Merchandise [Member]
Revenues
Total revenues	3,452	7,046	17,378	19,175
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	1,125	2,565	5,917	6,857
Service Revenues [Member]
Revenues
Total revenues	2,907	17,299	34,448	51,609
Other [Member]
Revenues
Total revenues	739	3,112	6,430	8,726
Service and Other [Member]
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	$ 20	$ 121	$ 205	$ 307

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Sep. 30, 2018	$ 97,000	$ 64,212,000	$ 88,906,000	$ 220,000		$ (103,000)	$ 153,332,000
Beginning balance, shares at Sep. 30, 2018	9,719,000
Purchase of treasury shares					$ (355,000)		(355,000)
Purchase of treasury shares, shares					(14,000)
Canceled treasury shares		(355,000)			$ 355,000
Canceled treasury shares, shares	(14,000)				14,000
Payment of dividends			(291,000)				(291,000)
Reclassification upon adoption of ASU 2016-01			220,000	(220,000)
Net income (loss)			6,344,000			60,000	6,404,000
Ending balance, value at Dec. 31, 2018	$ 97,000	63,857,000	95,179,000			(43,000)	159,090,000
Ending balance, shares at Dec. 31, 2018	9,705,000
Beginning balance, value at Sep. 30, 2018	$ 97,000	64,212,000	88,906,000	220,000		(103,000)	153,332,000
Beginning balance, shares at Sep. 30, 2018	9,719,000
Net income (loss)							18,826,000
Ending balance, value at Jun. 30, 2019	$ 96,000	61,849,000	106,976,000			(15,000)	168,906,000
Ending balance, shares at Jun. 30, 2019	9,617,000
Beginning balance, value at Dec. 31, 2018	$ 97,000	63,857,000	95,179,000			(43,000)	159,090,000
Beginning balance, shares at Dec. 31, 2018	9,705,000
Purchase of treasury shares					$ (1,606,000)		(1,606,000)
Purchase of treasury shares, shares					(71,000)
Canceled treasury shares	$ (1,000)	(1,605,000)			$ 1,606,000
Canceled treasury shares, shares	(71,000)				71,000
Payment of dividends			(291,000)				(291,000)
Net income (loss)			6,735,000			8,000	6,743,000
Ending balance, value at Mar. 31, 2019	$ 96,000	62,252,000	101,623,000			(35,000)	163,936,000
Ending balance, shares at Mar. 31, 2019	9,634,000
Beginning balance, value at Dec. 31, 2018	$ 97,000	63,857,000	95,179,000			(43,000)	159,090,000
Beginning balance, shares at Dec. 31, 2018	9,705,000
Payment of dividends							867,000
Ending balance, value at Jun. 30, 2019	$ 96,000	61,849,000	106,976,000			(15,000)	168,906,000
Ending balance, shares at Jun. 30, 2019	9,617,000
Beginning balance, value at Mar. 31, 2019	$ 96,000	62,252,000	101,623,000			(35,000)	163,936,000
Beginning balance, shares at Mar. 31, 2019	9,634,000
Purchase of treasury shares					$ (403,000)		(403,000)
Purchase of treasury shares, shares					(17,000)
Canceled treasury shares		(403,000)			$ 403,000
Canceled treasury shares, shares	(17,000)				17,000
Payment of dividends			(285,000)				(285,000)
Payment to noncontrolling interest						(21,000)	(21,000)
Net income (loss)			5,638,000			41,000	5,679,000
Ending balance, value at Jun. 30, 2019	$ 96,000	61,849,000	106,976,000			(15,000)	168,906,000
Ending balance, shares at Jun. 30, 2019	9,617,000
Beginning balance, value at Sep. 30, 2019	$ 96,000	61,312,000	107,049,000			(156,000)	$ 168,301,000
Beginning balance, shares at Sep. 30, 2019	9,591,000
Purchase of treasury shares					$ (6,441,000)		$ (6,441,000)
Purchase of treasury shares, shares					(333,000)
Canceled treasury shares	$ (3,000)	(6,438,000)			$ 6,441,000
Canceled treasury shares, shares	(333,000)				333,000
Payment of dividends			(279,000)				(279,000)
Payment to noncontrolling interest						(10,000)	(10,000)
Net income (loss)			5,634,000				5,634,000
Ending balance, value at Dec. 31, 2019	$ 93,000	54,874,000	112,404,000			(166,000)	167,205,000
Ending balance, shares at Dec. 31, 2019	9,258,000
Beginning balance, value at Sep. 30, 2019	$ 96,000	61,312,000	107,049,000			(156,000)	$ 168,301,000
Beginning balance, shares at Sep. 30, 2019	9,591,000
Net income (loss)							$ (3,427,000)
Ending balance, value at Jun. 30, 2020	$ 91,000	52,829,000	102,837,000			(322,000)	155,435,000
Ending balance, shares at Jun. 30, 2020	9,125,000
Beginning balance, value at Dec. 31, 2019	$ 93,000	54,874,000	112,404,000			(166,000)	167,205,000
Beginning balance, shares at Dec. 31, 2019	9,258,000
Purchase of treasury shares					$ (2,047,000)		(2,047,000)
Purchase of treasury shares, shares					(133,000)
Canceled treasury shares	$ (2,000)	(2,045,000)			$ 2,047,000
Canceled treasury shares, shares	(133,000)				133,000
Payment of dividends			(368,000)				(368,000)
Payment to noncontrolling interest						(21,000)	(21,000)
Net income (loss)			(3,452,000)			(41,000)	(3,493,000)
Ending balance, value at Mar. 31, 2020	$ 91,000	52,829,000	108,584,000			(228,000)	161,276,000
Ending balance, shares at Mar. 31, 2020	9,125,000
Payment of dividends			(273,000)				(273,000)
Net income (loss)			(5,474,000)			(94,000)	(5,568,000)
Ending balance, value at Jun. 30, 2020	$ 91,000	$ 52,829,000	$ 102,837,000			$ (322,000)	$ 155,435,000
Ending balance, shares at Jun. 30, 2020	9,125,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (3,427)	$ 18,826
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	6,696	6,718
Deferred income tax expense (benefit)	(1,517)	1,237
Gain on sale of businesses and assets	(749)	(2,704)
Impairment of assets	9,192
Unrealized loss on equity securities	103	408
Amortization of debt discount and issuance costs	194	276
Deferred rent		236
Noncash lease expense	1,244
Loss (gain) on insurance	(33)	93
Doubtful accounts expense on notes receivable	495
Changes in operating assets and liabilities:
Accounts receivable	(53)	2,305
Inventories	(29)	(87)
Prepaid insurance, other current and other assets	4,942	4,199
Accounts payable, accrued and other liabilities	(4,911)	(3,093)
Net cash provided by operating activities	12,147	28,414
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets	2,041	5,106
Proceeds from insurance	945
Proceeds from notes receivable	1,555	107
Issuance of note receivable		(420)
Payments for property and equipment and intangible assets	(5,565)	(16,901)
Acquisition of businesses, net of cash acquired		(13,500)
Net cash used in investing activities	(1,024)	(25,608)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations	6,503	12,330
Payments on debt obligations	(7,489)	(18,634)
Purchase of treasury stock	(8,488)	(2,364)
Payment of dividends	(920)	(867)
Payment of loan origination costs		(20)
Distribution to noncontrolling interests	(31)	(21)
Net cash used in financing activities	(10,425)	(9,576)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	698	(6,770)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	14,097	17,726
CASH AND CASH EQUIVALENTS AT END OF PERIOD	14,795	10,956
CASH PAID DURING PERIOD FOR:
Interest (net of amounts capitalized of $155 and $447, respectively)	7,303	7,769
Income taxes	2,067	1,827
Noncash investing and financing transactions:
Notes receivable received as proceeds from sale of assets		625
Operating lease right-of-use assets established upon adoption of ASC 842	27,310
Deferred rent liabilities reclassified upon adoption of ASC 842	1,241
Operating lease liabilities established upon adoption of ASC 842	28,551
Unpaid liabilities on capital expenditures	$ 6

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Statement of Cash Flows [Abstract]
Interest amount capitalized	$ 155	$ 447
Borrowing from certain investors		2,350
Exchange of notes payable one principal balance		300
Exchange of notes payable two principal balance		100
Amount of new notes payable one		450
Amount of new notes payable two		200
Entire transaction cash received		1,950
Total acquisition price of two clubs acquired		25,500
Payment of two clubs acquired		13,500
Total amount of executing three-seller financed notes		12,000
Total sale price of nightclub sold		1,000
Sale price received as cash		375
Notes receivable		625
Proceeds from disposal of assets held for sale		1,400
Payments to acquire assets held for sale		163
Property taxes		87
Notes receivable assets, held for sales		$ 1,150

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of RCI Hospitality Holdings, Inc. (the “Company or “RCIHH”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all information and footnotes required by GAAP for complete financial statements. The September 30, 2019 consolidated balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended September 30, 2019 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 13, 2020. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending September 30, 2020.

Recent Accounting Standards and

Recent Accounting Standards and Pronouncements	9 Months Ended
	Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Standards and Pronouncements	2. Recent Accounting Standards and Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) 27.3 1.2 28.6 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Income Statement—Reporting Comprehensive Income In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Liquidity and Impact of COVID-1

Liquidity and Impact of COVID-19 Pandemic	9 Months Ended
	Jun. 30, 2020
Liquidity And Impact Of Covid-19 Pandemic
Liquidity and Impact of COVID-19 Pandemic	3. Liquidity and Impact of COVID-19 Pandemic In March 2020, President Donald Trump declared the coronavirus disease 2019 (“COVID-19”) pandemic as a national public health emergency. COVID-19 is the disease caused by a novel strain of a coronavirus that originated from Wuhan, China in November 2019. The declaration resulted in a significant reduction in customer traffic in our clubs and restaurants due to changes in consumer behavior as social distancing practices, dining room closures and other restrictions that were mandated or encouraged by federal, state and local governments, and since March 2020, we have temporarily closed and reopened several of our clubs and restaurants. The closure of our clubs and restaurants caused by the COVID-19 pandemic has presented operational challenges. Our strategy is to open locations in accordance with local and state guidelines and it is too early to know when and if they will generate positive cash flows for us. Depending on the timing and number of locations we get open, and their ability to generate positive cash flow, we may need to borrow funds to meet our obligations or consider selling certain assets. The COVID-19 pandemic is adversely affecting the availability of liquidity generally in the credit markets, and there can be no guarantee that additional liquidity will be readily available or available on favorable terms, especially the longer the COVID-19 pandemic lasts. To augment an expected decline in operating cash flows caused by the COVID-19 pandemic, we instituted the following measures: ● Arranged and continue to arrange for deferment of principal and interest payment on certain of our debts; ● Furloughed employees working at our clubs and restaurants, except for a limited number of managers; ● Pay cut for all remaining salaried and hourly employees and deferral of board of director compensation; ● Deferred or modified certain fixed monthly expenses such as insurance, rent, and taxes, among others; ● Canceled certain non-essential expenses such as advertising, cable, pest control, point-of-sale system support, and investor relations coverage, among others. On May 8, 2020, the Company received approval and funding under the Paycheck Protection Program (“PPP”) of the CARES Act for its restaurants, shared service entity and lounge. See Notes 7 and 9. Ten of our restaurant subsidiaries received amounts ranging from $ 271 579 4.2 1.1 124 As of the release of this report, we do not know the extent and duration of the impact of COVID-19 on our businesses due to the uncertainty about the spread of the virus. Lower sales, as caused by social distancing guidelines, could lead to adverse financial results. However, we will continually monitor and evaluate the situation and will determine any further measures to be instituted, including refinancing several of our debt obligations. We continue to adhere to state and local government mandates regarding the pandemic and, since March 2020, have closed and reopened several of our locations depending on changing government mandates. As of the release of this report, we have reopened many of our club and Bombshells locations with limited occupancy but some of our bigger clubs are still closed. Valuation of Goodwill, Indefinite-Lived Intangibles and Long-Lived Assets We consider the COVID-19 pandemic as a triggering event in the assessment of recoverability of the goodwill, indefinite-lived intangibles, and long-lived assets in our clubs and restaurants that are affected. We evaluated forecasted cash flows considering future assumed impact of COVID-19 pandemic on sales. Based on our evaluation as of June 30, 2020, we determined our assets are impaired in a total amount of approximately $ 9.2 6.5 2.3 302 104

Revenues

Revenues	9 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenues	4. Revenues The Company recognizes revenue from the sale of alcoholic beverages, food and merchandise, service and other revenues at the point-of-sale upon receipt of cash, check, or credit card charge, net of discounts and promotional allowances based on consideration specified in implied contracts with customers. Sales and liquor taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying unaudited condensed consolidated statements of operations. The Company recognizes revenue when it satisfies a performance obligation (point in time of sale) by transferring control over a product or service to a customer. Commission revenues, such as ATM commission, are recognized when the basis for such commission has transpired. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention, which normally occurs during our fiscal fourth quarter. Lease revenue (included in other revenues) is recognized when earned (recognized over time) and is more appropriately covered by guidance under ASC 842, Leases RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 12), are shown below (in thousands): Schedule of Disaggregation of Segment Revenues Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 1,777 $ 5,846 $ - $ 7,623 $ 14,597 $ 4,973 $ - $ 19,570 Sales of food and merchandise 774 2,678 - 3,452 3,313 3,733 - 7,046 Service revenues 2,906 1 - 2,907 17,257 42 - 17,299 Other revenues 556 6 177 739 2,722 7 383 3,112 $ 6,013 $ 8,531 $ 177 $ 14,721 $ 37,889 $ 8,755 $ 383 $ 47,027 Recognized at a point in time $ 5,781 $ 8,531 $ 175 $ 14,487 $ 37,457 $ 8,755 $ 369 $ 46,581 Recognized over time 232 * - 2 234 432 * - 14 446 $ 6,013 $ 8,531 $ 177 $ 14,721 $ 37,889 $ 8,755 $ 383 $ 47,027 Nine Months Ended June 30, 2020 Nine Months Ended June 30, 2019 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 28,321 $ 16,964 $ - $ 45,285 $ 43,547 $ 12,819 $ - $ 56,366 Sales of food and merchandise 6,837 10,541 - 17,378 9,813 9,362 - 19,175 Service revenues 34,290 158 - 34,448 51,513 96 - 51,609 Other revenues 5,791 21 618 6,430 7,791 18 917 8,726 $ 75,239 $ 27,684 $ 618 $ 103,541 $ 112,664 $ 22,295 $ 917 $ 135,876 Recognized at a point in time $ 74,192 $ 27,684 $ 605 $ 102,481 $ 111,431 $ 22,295 $ 874 $ 134,600 Recognized over time 1,047 * - 13 1,060 1,233 * - 43 1,276 $ 75,239 $ 27,684 $ 618 $ 103,541 $ 112,664 $ 22,295 $ 917 $ 135,876 * Lease revenue (included in Other Revenues) as covered by ASC 842 in the current year (and ASC 840 in the prior year). All other revenues are covered by ASC 606. The Company does not have contract assets with customers. The Company’s unconditional right to consideration for goods and services transferred to the customer is included in accounts receivable, net in our unaudited condensed consolidated balance sheet. A reconciliation of contract liabilities with customers is presented below (in thousands): Schedule of Reconciliation of Contract Liabilities with Customers Balance at September 30, 2019 Consideration Received Recognized in Revenue Balance at June 30, 2020 Ad revenue $ 76 $ 403 $ (412 ) $ 67 Expo revenue - 262 - 262 Other 7 18 (23 ) 2 $ 83 $ 683 $ (435 ) $ 331 Contract liabilities with customers are included in accrued liabilities as unearned revenues in our unaudited condensed consolidated balance sheets (see also Note 5), while the revenues associated with these contract liabilities are included in other revenues in our unaudited condensed consolidated statements of operations. RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Selected Account Information

Selected Account Information	9 Months Ended
	Jun. 30, 2020
Selected Account Information
Selected Account Information	5. Selected Account Information The components of accrued liabilities are as follows (in thousands): Schedule of Accrued Liabilities June 30, 2020 September 30, 2019 Insurance $ 425 $ 4,937 Sales and liquor taxes 2,844 3,086 Payroll and related costs 1,972 2,892 Property taxes 1,355 1,675 Interest 1,565 508 Patron tax 679 595 Unearned revenues 331 83 Lawsuit settlement 75 115 Other 1,040 753 Accrued liabilities $ 10,286 $ 14,644 The components of selling, general and administrative expenses are as follows (in thousands): Schedule of Selling, General and Administrative Expenses 2020 2019 2020 2019 For the Three Months For the Nine Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Taxes and permits $ 1,187 $ 2,258 $ 6,101 $ 6,809 Advertising and marketing 428 2,083 4,745 6,301 Supplies and services 681 1,493 3,605 4,414 Insurance 1,481 1,367 4,437 4,122 Accounting and professional fees 407 631 2,916 2,559 Lease 1,010 965 3,063 2,941 Charge card fees 146 1,011 2,037 2,830 Legal 841 1,479 3,109 3,310 Utilities 512 756 2,205 2,262 Security 272 757 1,869 2,222 Repairs and maintenance 353 787 1,802 2,095 Other 1,590 1,308 4,000 3,398 Selling, general and administrative expenses $ 8,908 $ 14,895 $ 39,889 $ 43,263

Assets Held for Sale

Assets Held for Sale	9 Months Ended
	Jun. 30, 2020
Assets Held For Sale
Assets Held for Sale	6. Assets Held for Sale As of September 30, 2019, the Company had two real estate properties for sale. The aggregate estimated fair value of the properties less cost to sell as of September 30, 2019 was approximately $ 2.9 During the three months ended December 31, 2019, the Company classified as held-for-sale another real estate property with an aggregate estimated fair value of the property less cost to sell of $ 1.9 million. This property was later reclassified out of held-for-sale assets and back to property and equipment during the three months ended June 30, 2020 due to a change in management’s plan with the property. During the three months ended June 30, 2020, the Company sold one held-for-sale property valued at $ 853 ,000 for $ 1.5 million. As of June 30, 2020, the Company has a total of one real estate property held for sale with a total value of $ 2.0 The Company expects the properties held for sale, which are primarily comprised of land and buildings, to be sold within 12 months through property listings by our real estate brokers. No liabilities were associated with held-for-sale assets as of June 30, 2020 and September 30, 2019. Gains or losses on the sale of properties held for sale are included in other charges (gains), net within the unaudited condensed consolidated statements of operations. RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Debt

Debt	9 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt	7. Debt In December 2019, the Company amended the $ 5.0 3.0 October 1, 2022 In February 2020, in relation to a $ 4.0 12% August 15, 2018 10 57,388 4.0 In February 2020, in relation to a $ 9.9 12% 5.2 10 74,515 3.8 October 2021 25,400 Included in the balance of debt obligations as of June 30, 2020 and September 30, 2019 is a $ 500,000 600,000 (of which $200,000 was included in the $1,740,000 extension in the succeeding paragraph) borrowed from two non-officer employees and a family member of a non-officer employee in which the terms of the notes are the same as the rest of the lender groups. On May 1, 2020, the Company negotiated extensions to November 1, 2020 on $ 1,740,000 2,040,000 May 1, 2020 300,000 200,000 November 1, 2020 1,940,000 Future maturities of long-term debt as of June 30, 2020 are as follows: $ 17.5 million, $ 14.6 million, $ 11.6 million, $ 8.4 million, $ 8.5 million and $ 83.5 million for the twelve months ending June 30, 2021, 2022, 2023, 2024, 2025, and thereafter, respectively. Of the maturity schedule mentioned above, $ 6.5 million, $ 2.4 million, $ 3.7 million, $ 0 , $ 0 and $ 41.7 million, respectively, relate to scheduled balloon payments. Unamortized debt discount and issuance costs amounted to $ 1.3 1.5 Included in the balance of debt obligations as of June 30, 2020 are PPP loans amounting to $ 5.4 million. If not forgiven, under the terms of the loans as provided by the CARES Act, the twelve PPP loans bear an interest rate of 1 % per annum and will be payable in 18 equal monthly installments of $ 305,138 starting December 6, 2020. See Notes 3 and 9.

Equity

Equity	9 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Equity	8. Equity During the three and nine months ended June 30, 2020, the Company purchased and retired 0 465,390 0 8.5 0.03 0.10 273,000 920,000 During the three and nine months ended June 30, 2019, the Company purchased and retired 17,302 102,113 403,000 2.4 0.03 285 867,000 On February 6, 2020, the Company’s Board of Directors authorized an additional $ 10.0 11.8 RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes Income tax benefit was $ 1.4 million and $ 1.3 million during the three and nine months ended June 30, 2020, respectively, compared to income tax expense of $ 1.8 million and $ 5.5 million during the three and nine months ended June 30, 2019, respectively. The effective income tax rate was a benefit of 20.5% and 26.9% during the three and nine months ended June 30, 2020, respectively, compared to expense rates of 24.1% and 22.8% during the three and nine months ended June 30, 2019, respectively. Our effective tax rate for both years is affected by the estimate of pre-tax accounting income (loss) for the year, state taxes, permanent differences, and tax credits, including the FICA tip credit. The Company or one of its subsidiaries file income tax returns for U.S. federal jurisdiction and various states. Fiscal years ended September 30, 2017 and thereafter remain open to tax examination. The Company’s federal income tax returns for the years ended September 30, 2015, 2014 and 2013 have been examined by the Internal Revenue Service with no changes. In July 2020, we have resolved payroll tax audits with the IRS for tax years 2014 through 2017 and have accrued approximately $ 149,000 The Company accounts for uncertain tax positions pursuant to ASC Topic 740, Income Taxes 0 0 On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) into law. As a result of this, additional avenues of relief may be available to workers and families through enhanced unemployment insurance provisions and to small businesses through programs administered by the Small Business Administration. The CARES Act includes, among other items, provisions relating to payroll tax credits and deferrals, net operating loss carryback periods, alternative minimum tax credits and technical corrections to tax depreciation methods for qualified improvement property. The Company is currently evaluating the impact of the provisions of the CARES Act. The CARES Act also established a Paycheck Protection Program (“PPP”), whereby certain small businesses are eligible for a loan to fund payroll expenses, rent, and related costs. The loan may be forgiven if the funds are used for payroll and other qualified expenses. The Company has submitted its application for a PPP loan and on May 8, 2020 has received approval and funding for its restaurants, shared service entity and lounge. Ten of our restaurant subsidiaries received amounts ranging from $ 271,000 579,000 4.2 1.1 124,000

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Legal Matters Texas Patron Tax In 2015, the Company reached a settlement with the State of Texas over the payment of the state’s Patron Tax on adult club customers. To resolve the issue of taxes owed, the Company agreed to pay $ 10.0 119,000 5 10.0 9.6% 7.2 8.2 7.2 In March 2017, the Company settled with the State of Texas for one of the two remaining unsettled Patron Tax locations. To resolve the issue of taxes owed, the Company agreed to pay a total of $ 687,815 195,815 60 8,200 The aggregate balance of Patron Tax settlement liability, which is included in long-term debt in the unaudited condensed consolidated balance sheets, amounted to $ 2.5 million and $ 3.4 million as of June 30, 2020 and September 30, 2019, respectively. A declaratory judgment action was brought by five operating subsidiaries of the Company to challenge a Texas Comptroller administrative rule related to the $ 5 RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Indemnity Insurance Corporation As previously reported, the Company and its subsidiaries were insured under a liability policy issued by Indemnity Insurance Corporation, RRG (“IIC”) through October 25, 2013. The Company and its subsidiaries changed insurance companies on that date. On November 7, 2013, the Court of Chancery of the State of Delaware entered a Rehabilitation and Injunction Order (“Rehabilitation Order”), which declared IIC impaired, insolvent and in an unsafe condition and placed IIC under the supervision of the Insurance Commissioner of the State of Delaware (“Commissioner”) in her capacity as receiver (“Receiver”). The Rehabilitation Order empowered the Commissioner to rehabilitate IIC through a variety of means, including gathering assets and marshaling those assets as necessary. Further, the order stayed or abated pending lawsuits involving IIC as the insurer until May 6, 2014. On April 10, 2014, the Court of Chancery of the State of Delaware entered a Liquidation and Injunction Order With Bar Date (“Liquidation Order”), which ordered the liquidation of IIC and terminated all insurance policies or contracts of insurance issued by IIC. The Liquidation Order further ordered that all claims against IIC must have been filed with the Receiver before the close of business on January 16, 2015 and that all pending lawsuits involving IIC as the insurer were further stayed or abated until October 7, 2014. As a result, the Company and its subsidiaries no longer have insurance coverage under the liability policy with IIC. The Company has retained counsel to defend against and evaluate these claims and lawsuits. We are funding 100% Shareholder Class and Derivative Actions In May and June 2019, three putative securities class action complaints were filed against RCI Hospitality Holdings, Inc. and certain of its officers in the Southern District of Texas, Houston Division. The complaints allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and 10b-5 promulgated thereunder based on alleged materially false and misleading statements made in the Company’s SEC filings and disclosures as they relate to various alleged transactions by the Company and management. The complaints seek unspecified damages, costs, and attorneys’ fees. These lawsuits are Hoffman v. RCI Hospitality Holdings, Inc., et al. (filed May 21, 2019, naming the Company and Eric Langan); Gu v. RCI Hospitality Holdings, Inc., et al. (filed May 28, 2019, naming the Company, Eric Langan, and Phil Marshall); and Grossman v. RCI Hospitality Holdings, Inc., et al. (filed June 28, 2019, naming the Company, Eric Langan, and Phil Marshall). The plaintiffs in all three cases moved to consolidate the purported class actions. On January 10, 2020 an order consolidating the Hoffman, Grossman, and Gu cases was entered by the Court. The consolidated case is styled In re RCI Hospitality Holdings, Inc., No. 4:19-cv-01841. On February 24, 2020, the plaintiffs in the consolidated case filed an Amended Class Action Complaint, continuing to allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and 10b-5 promulgated thereunder. In addition to naming the Company, Eric Langan, and Phil Marshall, the amended complaint also adds director Nour-Dean Anakar and former director Steven Jenkins as defendants. On April 24, 2020, the Company and the individual defendants moved to dismiss the amended complaint for failure to state a claim upon which relief can be granted. As of July 23, 2020, briefing on the motion to dismiss is complete, and we are currently waiting for the court to rule on the motion. The Company intends to continue to vigorously defend against this action. This action is in its preliminary phase, and a potential loss cannot yet be estimated. RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) On August 16, 2019, a shareholder derivative action was filed in the Southern District of Texas, Houston Division against officers and directors, Eric S. Langan, Phillip Marshall, Nour-Dean Anakar, Yura Barabash, Luke Lirot, Travis Reese, former director Steven Jenkins, and RCI Hospitality Holdings, Inc., as nominal defendant. The action alleges that the individual officers and directors made or caused the Company to make a series of materially false and/or misleading statements and omissions regarding the Company’s business, operations, prospects, and legal compliance and engaged in or caused the Company to engage in, inter alia, related party transactions, questionable uses of corporate assets, and failure to maintain internal controls. The action asserts claims for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and violations of Sections 14(a), 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint seeks injunctive relief, damages, restitution, costs, and attorneys’ fees. The case, Cecere v. Langan, et al. SEC Matter and Internal Review In mid- and late 2018, a series of negative articles about the Company was anonymously published in forums associated with the short-selling community. Subsequently in 2019, the SEC initiated an informal inquiry. In connection with these events, a special committee of the Company’s audit committee engaged independent outside counsel to conduct an internal review. Management of the Company fully cooperated with the internal review conducted by the special committee and its outside counsel. The board of directors has implemented the recommendations resulting from the internal review. As of the date hereof, the internal review has been completed subject to any ongoing cooperation with regulatory authorities. Since the initiation of the informal inquiry by the SEC in early 2019, the Company and its management have fully cooperated and continue to fully cooperate with the SEC matter, which has now converted to a formal investigation and is ongoing. At this time, the Company is unable to predict the duration, scope, result or related costs associated with the investigation. The Company is also unable to predict what, if any, action may be taken as a result of the investigation. Any determination by the SEC that the Company’s activities were not in compliance with federal securities laws or regulations, however, could result in the imposition of fines, penalties, disgorgement, or equitable relief, which could have a material adverse effect on the Company. Other On March 26, 2016, an image infringement lawsuit was filed in federal court in the Southern District of New York against the Company and several of its subsidiaries. Plaintiffs allege that their images were misappropriated, intentionally altered and published without their consent by clubs affiliated with the Company. The causes of action asserted in Plaintiffs’ Complaint include alleged violations of the Federal Lanham Act, the New York Civil Rights Act, and other statutory and common law theories. The Company contends that there is insurance coverage under an applicable insurance policy. The insurer has raised several issues regarding coverage under the policy. At this time, this disagreement remains unresolved. The Company has denied all allegations, continues to vigorously defend against the lawsuit and continues to believe the matter is covered by insurance. The Company has been sued by a landlord in the 333rd Judicial District Court of Harris County, Texas for a Houston Bombshells which was under renovation in 2015. The plaintiff alleges RCI Hospitality Holdings, Inc.’s subsidiary, BMB Dining Services (Willowbrook), Inc., breached a lease agreement by constructing an outdoor patio, which allegedly interfered with the common areas of the shopping center, and by failing to provide Plaintiff with proposed plans before beginning construction. Plaintiff also asserts RCI Hospitality Holdings, Inc. is liable as guarantor of the lease. The lease was for a Bombshells restaurant to be opened in the Willowbrook Shopping Center in Houston, Texas. Both RCI Hospitality Holdings, Inc. and BMB Dining Services (Willowbrook), Inc. have denied liability and assert that Plaintiff has failed to mitigate its claimed damages. Further, BMB Dining Services (Willowbrook), Inc. asserts that Plaintiff affirmatively represented that the patio could be constructed under the lease and has filed counter claims and third-party claims against Plaintiff and Plaintiff’s manager asserting that they committed fraud and that the landlord breached the applicable agreements. The case was tried to a jury in late September 2018 and an adverse judgment was entered in January 2019 in the amount totaling $ 1.0 690,000 RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) On June 23, 2014, Mark H. Dupray and Ashlee Dupray filed a lawsuit against Pedro Antonio Panameno and our subsidiary JAI Dining Services (Phoenix) Inc. (“JAI Phoenix”) in the Superior Court of Arizona for Maricopa County. The suit alleged that Mr. Panameno injured Mr. Dupray in a traffic accident after being served alcohol at an establishment operated by JAI Phoenix. The suit alleged that JAI Phoenix was liable under theories of common law dram shop negligence and dram shop negligence per se. After a jury trial proceeded to a verdict in favor of the plaintiffs against both defendants, in April 2017 the Court entered a judgment under which JAI Phoenix’s share of compensatory damages is approximately $ 1.4 4 As set forth in the risk factors as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2019, the adult entertainment industry standard is to classify adult entertainers as independent contractors, not employees. While we take steps to ensure that our adult entertainers are deemed independent contractors, from time to time, we are named in lawsuits related to the alleged misclassification of entertainers. Claims are brought under both federal and where applicable, state law. Based on the industry standard, the manner in which the independent contractor entertainers are treated at the clubs, and the entertainer license agreements governing the entertainer’s work at the clubs, the Company believes that these lawsuits are without merit. Lawsuits are handled by attorneys with an expertise in the relevant law and are defended vigorously. Due to several COVID-19 regulations and restrictions imposed on some of our businesses by local municipalities and/or States, certain of our subsidiaries are plaintiffs to lawsuits that have been filed on behalf of the affected entities to have the restrictions eased or removed entirely. The lawsuits may increase or decrease based on the spread of the disease and new or additional restrictions placed on our businesses. General In the regular course of business affairs and operations, we are subject to possible loss contingencies arising from third-party litigation and federal, state, and local environmental, labor, health and safety laws and regulations. We assess the probability that we could incur liability in connection with certain of these lawsuits. Our assessments are made in accordance with generally accepted accounting principles, as codified in ASC 450-20, and is not an admission of any liability on the part of the Company or any of its subsidiaries. In certain cases that are in the early stages and in light of the uncertainties surrounding them, we do not currently possess sufficient information to determine a range of reasonably possible liability. In matters where there is insurance coverage, in the event we incur any liability, we believe it is unlikely we would incur losses in connection with these claims in excess of our insurance coverage. Settlements of lawsuits for the three and nine months ended June 30, 2020 total approximately $ 50,000 74,000 0 144,000 75,000 115,000

Acquisition

Acquisition	9 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Acquisition	11. Acquisition On November 5, 2019, we announced that our subsidiaries had signed definitive agreements to acquire the assets and related real estate of a well-established, top gentlemen’s club located in the Northeast Corridor for $ 15.0 RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Information	12. Segment Information The Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such reportable segments based on management responsibility and the nature of the Company’s products, services, and costs. There are no major distinctions in geographical areas served as all operations are in the United States. The Company measures segment profit (loss) as income (loss) from operations. Segment assets are those assets controlled by each reportable segment. The Other category below includes our media and energy drink divisions that are not significant to the consolidated financial statements. Schedule of Segment Reporting Information Below is the financial information related to the Company’s segments (in thousands): For the Three Months For the Nine Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Revenues Nightclubs $ 6,013 $ 37,889 $ 75,239 $ 112,664 Bombshells 8,531 8,755 27,684 22,295 Other 177 383 618 917 General corporate - - - - $ 14,721 $ 47,027 $ 103,541 $ 135,876 Income (loss) from operations Nightclubs $ (3,088 ) $ 14,034 $ 13,002 $ 44,499 Bombshells 1,903 686 4,166 1,543 Other (95 ) (111 ) (480 ) (406 ) General corporate (3,377 ) (4,635 ) (14,134 ) (13,364 ) $ (4,657 ) $ 9,974 $ 2,554 $ 32,272 Depreciation and amortization Nightclubs $ 1,470 $ 1,737 $ 4,426 $ 4,711 Bombshells 455 370 1,328 1,001 Other 103 102 311 312 General corporate 207 256 631 694 $ 2,235 $ 2,465 $ 6,696 $ 6,718 Capital expenditures Nightclubs $ 106 $ 1,935 $ 2,964 $ 3,029 Bombshells 136 900 2,473 10,697 Other - 2 - 20 General corporate - 162 128 3,155 $ 242 $ 2,999 $ 5,565 $ 16,901 June 30, 2020 September 30, 2019 Total assets Nightclubs $ 277,707 $ 274,071 Bombshells 51,907 44,144 Other 1,516 1,773 General corporate 29,244 33,649 $ 360,374 $ 353,637 RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) General corporate expenses include corporate salaries, health insurance and social security taxes for officers, legal, accounting and information technology employees, corporate taxes and insurance, legal and accounting fees, depreciation and other corporate costs such as automobile and travel costs. Management considers these to be non-allocable costs for segment purposes. Certain real estate assets previously wholly assigned to Bombshells have been subdivided and allocated to other future development or investment projects. Accordingly, those asset costs have been transferred out of the Bombshells segment.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	13. Related Party Transactions Presently, our Chairman and President, Eric Langan, personally guarantees all of the commercial bank indebtedness of the Company. Mr. Langan receives no compensation or other direct financial benefit for any of the guarantees. The balance of our commercial bank indebtedness, net of debt discount and issuance costs, as of June 30, 2020 and September 30, 2019 is $ 84.0 86.8 Included in the $ 2.35 500,000 We used the services of Nottingham Creations (formerly Sherwood Forest Creations, LLC), a furniture fabrication company that manufactures tables, chairs and other furnishings for our Bombshells locations, as well as providing ongoing maintenance. Nottingham Creations is owned by a brother of Eric Langan (as was Sherwood Forest). Amounts billed to us for goods and services provided by Nottingham Creations and Sherwood Forest were $ 0 and $ 72,809 during the three and nine months ended June 30, 2020, respectively, and $ 12,990 and $ 120,805 during the three and nine months ended June 30, 2019, respectively. As of June 30, 2020 and September 30, 2019, we owed Nottingham Creations and Sherwood Forest $ 13,705 and $ 6,588 respectively, in unpaid billings. TW Mechanical LLC (“TW Mechanical”) provided plumbing and HVAC services to both a third-party general contractor providing construction services to the Company, as well as directly to the Company during fiscal 2020 and 2019. A son-in-law of Eric Langan owns a noncontrolling interest in TW Mechanical. Amounts billed by TW Mechanical to the third-party general contractor were $ 0 and $ 18,758 for the three and nine months ended June 30, 2020, respectively, and $ 0 and $ 435,800 for the three and nine months ended June 30, 2019, respectively. Amounts billed directly to the Company were $ 11,363 and $ 37,605 for the three and nine months ended June 30, 2020, respectively, and $ 0 and $ 206 for the three and nine months ended June 30, 2019, respectively. As of June 30, 2020 and September 30, 2019, the Company owed TW Mechanical $ 4,439 and $ 0 , respectively, in unpaid direct billings. RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Leases

Leases	9 Months Ended
	Jun. 30, 2020
Leases
Leases	14. Leases The Company leases certain facilities and equipment under operating leases. Under ASC 840, lease expense for the Company’s operating leases, which generally have escalating rentals over the term of the lease, is recorded using the straight-line method over the initial lease term whereby an equal amount of lease expense is attributed to each period during the term of the lease, regardless of when actual payments are made. Generally, this results in lease expense in excess of cash payments during the early years of a lease and lease expense less than cash payments in the later years. The difference between lease expense recognized and actual lease payments is accumulated and included in other long-term liabilities in the consolidated balance sheets. Included in lease expense in our unaudited condensed consolidated statements of operations (see Note 5) were lease payments for a house that the Company’s CEO rented to the Company for corporate housing for its out-of-town Bombshells management and trainers, of which lease expense totaled $ 0 19,500 19,500 58,500 December 31, 2019 Schedule of Future Minimum Rental Payments for Operating Leases Undiscounted future minimum annual lease obligations as of September 30, 2019 under ASC 840 are as follows (in thousands): September 30, 2019 2020 $ 3,237 2021 3,154 2022 3,057 2023 2,889 2024 2,850 Thereafter 21,038 Total future minimum lease obligations $ 36,225 Included in the future minimum lease obligations are billboard and outdoor sign leases. These leases were recorded as advertising and marketing expenses, and included in selling, general and administrative expenses in our unaudited condensed consolidated statements of operations. Under ASC 840, we recorded lease expense amounting to $ 965,000 2.9 The Company adopted ASC 842 as of October 1, 2019. The Company’s adoption of ASC 842 included renewal or termination options for varying periods which we deemed reasonably certain to exercise. This determination is based on our consideration of certain economic, strategic and other factors that we evaluate at lease commencement date and reevaluate throughout the lease term. Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance and tax payments. The variable portion of lease payments is not included in our right-of-use assets or lease liabilities. Rather, variable payments, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred and are included in lease expenses recorded in selling, general and administrative expenses in our unaudited condensed consolidated statement of operations. We have elected to apply the short-term lease exception for all underlying asset classes, which mainly includes equipment leases. That is, leases with a term of 12 months or less are not recognized on the balance sheet, but rather expensed on a straight-line basis over the lease term. We do not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases. Our adoption of ASC 842 did not have a material impact on our lease revenue accounting as a lessor. See Note 4. Schedule of Future Maturities of Lease Liabilities Future maturities of ASC 842 lease liabilities as of June 30, 2020 are as follows (in thousands): Principal Payments Interest Total Payments July 2020 - June 2021 $ 1,586 $ 1,617 $ 3,203 July 2021 - June 2022 1,719 1,517 3,236 July 2022 - June 2023 1,703 1,412 3,115 July 2023 - June 2024 1,738 1,310 3,048 July 2024 - June 2025 1,906 1,200 3,106 Thereafter 18,797 5,703 24,500 $ 27,449 $ 12,759 $ 40,208 Schedule of Lease Expense Total lease expense, under ASC 842, was included in selling, general and administrative expenses in our unaudited condensed consolidated statement of operations, except for sublease income which was included in other revenue, for the three and nine months ended June 30, 2020 as follows (in thousands): Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Operating lease expense – fixed payments $ 839 $ 2,519 Variable lease expense 158 288 Short-term equipment and other lease expense (includes $ 12 303 72 297 97 856 Sublease income (2 ) (8 ) Total lease expense, net $ 1,092 $ 3,655 Other information: Operating cash outflows from operating leases $ 1,051 $ 3,513 Weighted average remaining lease term 13 Weighted average discount rate 6.1 %

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Segment Revenues	Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 12), are shown below (in thousands): Schedule of Disaggregation of Segment Revenues Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 1,777 $ 5,846 $ - $ 7,623 $ 14,597 $ 4,973 $ - $ 19,570 Sales of food and merchandise 774 2,678 - 3,452 3,313 3,733 - 7,046 Service revenues 2,906 1 - 2,907 17,257 42 - 17,299 Other revenues 556 6 177 739 2,722 7 383 3,112 $ 6,013 $ 8,531 $ 177 $ 14,721 $ 37,889 $ 8,755 $ 383 $ 47,027 Recognized at a point in time $ 5,781 $ 8,531 $ 175 $ 14,487 $ 37,457 $ 8,755 $ 369 $ 46,581 Recognized over time 232 * - 2 234 432 * - 14 446 $ 6,013 $ 8,531 $ 177 $ 14,721 $ 37,889 $ 8,755 $ 383 $ 47,027 Nine Months Ended June 30, 2020 Nine Months Ended June 30, 2019 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 28,321 $ 16,964 $ - $ 45,285 $ 43,547 $ 12,819 $ - $ 56,366 Sales of food and merchandise 6,837 10,541 - 17,378 9,813 9,362 - 19,175 Service revenues 34,290 158 - 34,448 51,513 96 - 51,609 Other revenues 5,791 21 618 6,430 7,791 18 917 8,726 $ 75,239 $ 27,684 $ 618 $ 103,541 $ 112,664 $ 22,295 $ 917 $ 135,876 Recognized at a point in time $ 74,192 $ 27,684 $ 605 $ 102,481 $ 111,431 $ 22,295 $ 874 $ 134,600 Recognized over time 1,047 * - 13 1,060 1,233 * - 43 1,276 $ 75,239 $ 27,684 $ 618 $ 103,541 $ 112,664 $ 22,295 $ 917 $ 135,876 * Lease revenue (included in Other Revenues) as covered by ASC 842 in the current year (and ASC 840 in the prior year). All other revenues are covered by ASC 606.
Schedule of Reconciliation of Contract Liabilities with Customers	The Company does not have contract assets with customers. The Company’s unconditional right to consideration for goods and services transferred to the customer is included in accounts receivable, net in our unaudited condensed consolidated balance sheet. A reconciliation of contract liabilities with customers is presented below (in thousands): Schedule of Reconciliation of Contract Liabilities with Customers Balance at September 30, 2019 Consideration Received Recognized in Revenue Balance at June 30, 2020 Ad revenue $ 76 $ 403 $ (412 ) $ 67 Expo revenue - 262 - 262 Other 7 18 (23 ) 2 $ 83 $ 683 $ (435 ) $ 331

Selected Account Information (T

Selected Account Information (Tables)	9 Months Ended
	Jun. 30, 2020
Selected Account Information
Schedule of Accrued Liabilities	The components of accrued liabilities are as follows (in thousands): Schedule of Accrued Liabilities June 30, 2020 September 30, 2019 Insurance $ 425 $ 4,937 Sales and liquor taxes 2,844 3,086 Payroll and related costs 1,972 2,892 Property taxes 1,355 1,675 Interest 1,565 508 Patron tax 679 595 Unearned revenues 331 83 Lawsuit settlement 75 115 Other 1,040 753 Accrued liabilities $ 10,286 $ 14,644
Schedule of Selling, General and Administrative Expenses	The components of selling, general and administrative expenses are as follows (in thousands): Schedule of Selling, General and Administrative Expenses 2020 2019 2020 2019 For the Three Months For the Nine Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Taxes and permits $ 1,187 $ 2,258 $ 6,101 $ 6,809 Advertising and marketing 428 2,083 4,745 6,301 Supplies and services 681 1,493 3,605 4,414 Insurance 1,481 1,367 4,437 4,122 Accounting and professional fees 407 631 2,916 2,559 Lease 1,010 965 3,063 2,941 Charge card fees 146 1,011 2,037 2,830 Legal 841 1,479 3,109 3,310 Utilities 512 756 2,205 2,262 Security 272 757 1,869 2,222 Repairs and maintenance 353 787 1,802 2,095 Other 1,590 1,308 4,000 3,398 Selling, general and administrative expenses $ 8,908 $ 14,895 $ 39,889 $ 43,263

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Schedule of Segment Reporting Information Below is the financial information related to the Company’s segments (in thousands): For the Three Months For the Nine Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Revenues Nightclubs $ 6,013 $ 37,889 $ 75,239 $ 112,664 Bombshells 8,531 8,755 27,684 22,295 Other 177 383 618 917 General corporate - - - - $ 14,721 $ 47,027 $ 103,541 $ 135,876 Income (loss) from operations Nightclubs $ (3,088 ) $ 14,034 $ 13,002 $ 44,499 Bombshells 1,903 686 4,166 1,543 Other (95 ) (111 ) (480 ) (406 ) General corporate (3,377 ) (4,635 ) (14,134 ) (13,364 ) $ (4,657 ) $ 9,974 $ 2,554 $ 32,272 Depreciation and amortization Nightclubs $ 1,470 $ 1,737 $ 4,426 $ 4,711 Bombshells 455 370 1,328 1,001 Other 103 102 311 312 General corporate 207 256 631 694 $ 2,235 $ 2,465 $ 6,696 $ 6,718 Capital expenditures Nightclubs $ 106 $ 1,935 $ 2,964 $ 3,029 Bombshells 136 900 2,473 10,697 Other - 2 - 20 General corporate - 162 128 3,155 $ 242 $ 2,999 $ 5,565 $ 16,901 June 30, 2020 September 30, 2019 Total assets Nightclubs $ 277,707 $ 274,071 Bombshells 51,907 44,144 Other 1,516 1,773 General corporate 29,244 33,649 $ 360,374 $ 353,637

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2020
Leases
Schedule of Future Minimum Rental Payments for Operating Leases	Schedule of Future Minimum Rental Payments for Operating Leases Undiscounted future minimum annual lease obligations as of September 30, 2019 under ASC 840 are as follows (in thousands): September 30, 2019 2020 $ 3,237 2021 3,154 2022 3,057 2023 2,889 2024 2,850 Thereafter 21,038 Total future minimum lease obligations $ 36,225
Schedule of Future Maturities of Lease Liabilities	Schedule of Future Maturities of Lease Liabilities Future maturities of ASC 842 lease liabilities as of June 30, 2020 are as follows (in thousands): Principal Payments Interest Total Payments July 2020 - June 2021 $ 1,586 $ 1,617 $ 3,203 July 2021 - June 2022 1,719 1,517 3,236 July 2022 - June 2023 1,703 1,412 3,115 July 2023 - June 2024 1,738 1,310 3,048 July 2024 - June 2025 1,906 1,200 3,106 Thereafter 18,797 5,703 24,500 $ 27,449 $ 12,759 $ 40,208
Schedule of Lease Expense	Schedule of Lease Expense Total lease expense, under ASC 842, was included in selling, general and administrative expenses in our unaudited condensed consolidated statement of operations, except for sublease income which was included in other revenue, for the three and nine months ended June 30, 2020 as follows (in thousands): Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Operating lease expense – fixed payments $ 839 $ 2,519 Variable lease expense 158 288 Short-term equipment and other lease expense (includes $ 12 303 72 297 97 856 Sublease income (2 ) (8 ) Total lease expense, net $ 1,092 $ 3,655 Other information: Operating cash outflows from operating leases $ 1,051 $ 3,513 Weighted average remaining lease term 13 Weighted average discount rate 6.1 %

Recent Accounting Standards a_2

Recent Accounting Standards and Pronouncements (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2020	Oct. 02, 2019	Sep. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 25,962
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 27,300
Reclassification of deferred rent liability		1,200
Operating lease Liability		$ 28,600

Liquidity and Impact of COVID_2

Liquidity and Impact of COVID-19 Pandemic (Details Narrative) - USD ($)	May 08, 2020	Jun. 30, 2020
Entity Listings [Line Items]
Impairment of assets		$ 9,200,000
Impairment of goodwill		6,500,000
Impairment of SOB licenses		2,300,000
Impairment of property and equipment		302,000
Right-of-use operating lease assets.		$ 104,000
CARES Act [Member] | Our Shared-Services [Member]
Entity Listings [Line Items]
Subsidiaries received	$ 1,100,000
CARES Act [Member] | Ten of Our Restaurant [Member]
Entity Listings [Line Items]
Proceeds from loan	4,200,000
CARES Act [Member] | Ten of Our Restaurant [Member] | Minimum [Member]
Entity Listings [Line Items]
Subsidiaries received	271,000
CARES Act [Member] | Ten of Our Restaurant [Member] | Maximum [Member]
Entity Listings [Line Items]
Subsidiaries received	579,000
CARES Act [Member] | One of Our Lounges [Member]
Entity Listings [Line Items]
Subsidiaries received	$ 124,000

Schedule of Disaggregation of S

Schedule of Disaggregation of Segment Revenues (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenues		$ 14,721	$ 47,027	$ 103,541	$ 135,876
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues		14,487	46,581	102,481	134,600
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues		234	446	1,060	1,276
Sales of Alcoholic Beverages [Member]
Disaggregation of Revenue [Line Items]
Total revenues		7,623	19,570	45,285	56,366
Sales of Food and Merchandise [Member]
Disaggregation of Revenue [Line Items]
Total revenues		3,452	7,046	17,378	19,175
Service Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		2,907	17,299	34,448	51,609
Other Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		739	3,112	6,430	8,726
Nightclubs [Member]
Disaggregation of Revenue [Line Items]
Total revenues		6,013	37,889	75,239	112,664
Nightclubs [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues		5,781	37,457	74,192	111,431
Nightclubs [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues	[1]	232	432	1,047	1,233
Nightclubs [Member] | Sales of Alcoholic Beverages [Member]
Disaggregation of Revenue [Line Items]
Total revenues		1,777	14,597	28,321	43,547
Nightclubs [Member] | Sales of Food and Merchandise [Member]
Disaggregation of Revenue [Line Items]
Total revenues		774	3,313	6,837	9,813
Nightclubs [Member] | Service Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		2,906	17,257	34,290	51,513
Nightclubs [Member] | Other Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		556	2,722	5,791	7,791
Bombshells [Member]
Disaggregation of Revenue [Line Items]
Total revenues		8,531	8,755	27,684	22,295
Bombshells [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues		8,531	8,755	27,684	22,295
Bombshells [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues
Bombshells [Member] | Sales of Alcoholic Beverages [Member]
Disaggregation of Revenue [Line Items]
Total revenues		5,846	4,973	16,964	12,819
Bombshells [Member] | Sales of Food and Merchandise [Member]
Disaggregation of Revenue [Line Items]
Total revenues		2,678	3,733	10,541	9,362
Bombshells [Member] | Service Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		1	42	158	96
Bombshells [Member] | Other Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		6	7	21	18
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenues		177	383	618	917
Other [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues		175	369	605	874
Other [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenues		2	14	13	43
Other [Member] | Sales of Alcoholic Beverages [Member]
Disaggregation of Revenue [Line Items]
Total revenues
Other [Member] | Sales of Food and Merchandise [Member]
Disaggregation of Revenue [Line Items]
Total revenues
Other [Member] | Service Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues
Other [Member] | Other Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		$ 177	$ 383	$ 618	$ 917
[1]	Lease revenue (included in Other Revenues) as covered by ASC 842 in the current year (and ASC 840 in the prior year). All other revenues are covered by ASC 606.

Schedule of Reconciliation of C

Schedule of Reconciliation of Contract Liabilities with Customers (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2020USD ($)
Disaggregation of Revenue [Line Items]
Contract liabilities with customers beginning	$ 83
Consideration Received	683
Recognized in Revenue	(435)
Contract liabilities with customers ending	331
Ad Revenue [Member]
Disaggregation of Revenue [Line Items]
Contract liabilities with customers beginning	76
Consideration Received	403
Recognized in Revenue	(412)
Contract liabilities with customers ending	67
Expo Revenue [Member]
Disaggregation of Revenue [Line Items]
Contract liabilities with customers beginning
Consideration Received	262
Recognized in Revenue
Contract liabilities with customers ending	262
Other [Member]
Disaggregation of Revenue [Line Items]
Contract liabilities with customers beginning	7
Consideration Received	18
Recognized in Revenue	(23)
Contract liabilities with customers ending	$ 2

Schedule of Accrued Liabilities

Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Selected Account Information
Insurance	$ 425	$ 4,937
Sales and liquor taxes	2,844	3,086
Payroll and related costs	1,972	2,892
Property taxes	1,355	1,675
Interest	1,565	508
Patron tax	679	595
Unearned revenues	331	83
Lawsuit settlement	75	115
Other	1,040	753
Accrued liabilities	$ 10,286	$ 14,644

Schedule of Selling, General an

Schedule of Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Selected Account Information
Taxes and permits	$ 1,187	$ 2,258	$ 6,101	$ 6,809
Advertising and marketing	428	2,083	4,745	6,301
Supplies and services	681	1,493	3,605	4,414
Insurance	1,481	1,367	4,437	4,122
Accounting and professional fees	407	631	2,916	2,559
Lease	1,010	965	3,063	2,941
Charge card fees	146	1,011	2,037	2,830
Legal	841	1,479	3,109	3,310
Utilities	512	756	2,205	2,262
Security	272	757	1,869	2,222
Repairs and maintenance	353	787	1,802	2,095
Other	1,590	1,308	4,000	3,398
Selling, general and administrative expenses	$ 8,908	$ 14,895	$ 39,889	$ 43,263

Assets Held for Sale (Details N

Assets Held for Sale (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Multiemployer Plan [Line Items]
Proceeds from Sale of Property Held-for-sale	$ 1,500
Assets held for sale	2,013		$ 2,866
Disposal Group, Including Discontinued Operation, Liabilities, Current			0
Two Real Estate Properties For Sale [Member]
Multiemployer Plan [Line Items]
Estimated fair value of properties lease cost			$ 2,900
Real Estate Properties For Sale [Member]
Multiemployer Plan [Line Items]
Estimated fair value of properties lease cost		$ 1,900
Held-For-Sale Property [Member]
Multiemployer Plan [Line Items]
Proceeds from Sale of Property Held-for-sale	853
One Real Estate Property For Sale [Member]
Multiemployer Plan [Line Items]
Assets held for sale	$ 2,000

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	May 01, 2020	Feb. 29, 2020	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2020	Nov. 01, 2020	Sep. 30, 2019
Short-term Debt [Line Items]
Short-term note payable	$ 2,040,000		$ 3,000,000
Debt instrument, maturity date	May 1, 2020		Oct. 1, 2022
Write-off unamortized debt issuance cost					$ 25,400
Borrowed from a related party							$ 500,000
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months				$ 17,500,000	17,500,000
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two				14,600,000	14,600,000
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three				11,600,000	11,600,000
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four				8,400,000	8,400,000
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five				8,500,000	8,500,000
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five				83,500,000	83,500,000
Unamortized debt discount				1,300,000	1,300,000
Issuance costs							$ 1,500,000
June 30, 2021 [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment				6,500,000	6,500,000
June 30, 2022 [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment				2,400,000	2,400,000
June 30, 2023 [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment				3,700,000	3,700,000
June 30, 2024 [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment				0	0
June 30, 2025 [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment				0	0
June 30, 2025 and Thereafter [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment				41,700,000	41,700,000
Forecast [Member]
Short-term Debt [Line Items]
Short-term note payable						$ 1,740,000
December 2017 Refinancing Loan [Member]
Short-term Debt [Line Items]
Short-term note payable		$ 9,900,000		5,200,000	5,200,000
Debt instrument, interest rate		12.00%
Debt instrument, terms		10 years
Debt instrument monthly payment		$ 74,515
Debt instrument, maturity date, description		October 2021
PPP Loans [Member]
Short-term Debt [Line Items]
Long-term Debt, Gross				$ 5,400,000	$ 5,400,000
PPP Loans [Member] | December Six Two Thousand Twenty [Member]
Short-term Debt [Line Items]
Debt instrument, interest rate				1.00%	1.00%
Debt instrument monthly payment				$ 305,138
October 2021 [Member] | December 2017 Refinancing Loan [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment		$ 3,800,000
Private Lender [Member]
Short-term Debt [Line Items]
Short-term note payable		$ 4,000,000
Debt instrument, maturity date		Aug. 15, 2018
Debt instrument, interest rate		12.00%
Debt instrument, terms		10 years
Debt instrument monthly payment		$ 57,388
Private Lender [Member] | August 2021 [Member]
Short-term Debt [Line Items]
Debt instrument, balloon principal payment		$ 4,000,000
Lender [Member] | New Debt [Member]
Short-term Debt [Line Items]
Debt instrument, maturity date	Nov. 1, 2020
Repayment of long term debt	$ 300,000
Proceeds from long term debt	$ 200,000
Lender [Member] | New Debt [Member] | Forecast [Member]
Short-term Debt [Line Items]
Due to related party						$ 1,940,000
Scarlett's Acquisition [Member]
Short-term Debt [Line Items]
Short-term note payable			$ 5,000,000

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	Jul. 07, 2020	Feb. 06, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Number of shares purchased and retired, shares			0			17,302				465,390	102,113
Number of shares purchased and retired			$ 0			$ 403,000				$ 8,500,000	$ 2,400,000
Share price			$ 0.03			$ 0.03				$ 0.10	$ 0.03
Cash dividend			$ 273,000							$ 920,000
Payment of dividends			273,000	$ 368,000	$ 279,000	$ 285,000	$ 291,000	$ 291,000	$ (867,000)
Dividends			$ (273,000)	(368,000)	(279,000)	(285,000)	(291,000)	(291,000)	$ 867,000
Stock repurchased during the period
Subsequent Event [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Stock repurchased during the period	$ 11,800,000
Board of Directors [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Stock repurchased during the period		$ 10,000,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	May 08, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Other Income Tax Expense (Benefit), Continuing Operations		$ 1,400,000	$ 1,800,000		$ 1,300,000	$ 5,500,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		20.50%	24.10%		26.90%	22.80%
Payroll taxes and penalties		$ 149,000		$ 149,000	$ 149,000
Payroll taxes and penalties				149,000
Liability for uncertain tax positions		$ 0		$ 0	$ 0		$ 0
CARES Act [Member] | Our Shared-Services [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Subsidiaries received	$ 1,100,000
CARES Act [Member] | Ten of Our Restaurant [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Proceeds from loans	4,200,000
CARES Act [Member] | Ten of Our Restaurant [Member] | Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Subsidiaries received	271,000
CARES Act [Member] | Ten of Our Restaurant [Member] | Maximum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Subsidiaries received	579,000
CARES Act [Member] | One of Our Lounges [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Subsidiaries received	$ 124,000

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	1 Months Ended			3 Months Ended			9 Months Ended
	Apr. 30, 2017USD ($)	Mar. 31, 2017USD ($)Integer	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2020USD ($)$ / shares	Jun. 30, 2019USD ($)	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2020USD ($)$ / shares	Jun. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Loss Contingencies [Line Items]
Patron tax amount agreed to pay			$ 10,000,000
Monthly installment of settlement loss			$ 119,000
Patron tax on monthly basis per customer | $ / shares			$ 5	$ 5		$ 5	$ 5
Patron tax amount discounted value			$ 10,000,000
Imputed interest rate			9.60%
Patron tax settlement			$ 7,200,000
Pre-tax gain						$ 8,200,000
Accrued tax value			$ 7,200,000			$ 7,200,000
Settlement Liabilities, Current				$ 2,500,000			$ 2,500,000		$ 3,400,000
Loss contingency, damages sought, value							1,000,000
Appeal process amount							690,000
Payments for legal settlements				50,000	$ 0		$ 74,000	$ 144,000
Indemnity Insurance Corporation [Member]
Loss Contingencies [Line Items]
Percentage of costs of litigation							100.00%
Compensatory Damages [Member] | Notes Payable Twenty Two [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought, value	$ 1,400,000
Punitive Damages [Member] | Notes Payable Twenty Two [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought, value	$ 4,000,000
Settlement Agreement [Member]
Loss Contingencies [Line Items]
Payment of settlement amount		$ 687,815
Litigation settlement, expense		$ 195,815
Number of monthly installment | Integer		60
Settlement amount net of interest		$ 8,200
Settlement of Lawsuits [Member]
Loss Contingencies [Line Items]
Accrued liabilities				$ 75,000			$ 75,000		$ 115,000

Acquisition (Details Narrative)

Acquisition (Details Narrative) $ in Millions	Nov. 05, 2019USD ($)
Percentage of Costs of Litigation
Schedule of Capitalization, Long-term Debt [Line Items]
Purchase of real estate	$ 15

Schedule of Segment Reporting I

Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Segment Reporting Information [Line Items]
Total revenues	$ 14,721	$ 47,027	$ 103,541	$ 135,876
Income (loss) from operations	(4,657)	9,974	2,554	32,272
Depreciation and amortization	2,235	2,465	6,696	6,718
Capital expenditures	242	2,999	5,565	16,901
Total assets	360,374		360,374		$ 353,637
Nightclubs [Member]
Segment Reporting Information [Line Items]
Total revenues	6,013	37,889	75,239	112,664
Income (loss) from operations	(3,088)	14,034	13,002	44,499
Depreciation and amortization	1,470	1,737	4,426	4,711
Capital expenditures	106	1,935	2,964	3,029
Total assets	277,707		277,707		274,071
Bombshells [Member]
Segment Reporting Information [Line Items]
Total revenues	8,531	8,755	27,684	22,295
Income (loss) from operations	1,903	686	4,166	1,543
Depreciation and amortization	455	370	1,328	1,001
Capital expenditures	136	900	2,473	10,697
Total assets	51,907		51,907		44,144
Other [Member]
Segment Reporting Information [Line Items]
Total revenues	177	383	618	917
Income (loss) from operations	(95)	(111)	(480)	(406)
Depreciation and amortization	103	102	311	312
Capital expenditures		2		20
Total assets	1,516		1,516		1,773
General Corporate [Member]
Segment Reporting Information [Line Items]
Total revenues
Income (loss) from operations	(3,377)	(4,635)	(14,134)	(13,364)
Depreciation and amortization	207	256	631	694
Capital expenditures		$ 162	128	$ 3,155
Total assets	$ 29,244		$ 29,244		$ 33,649

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019	Nov. 01, 2018
Related Party Transaction [Line Items]
Indebtedness, net of debt discount and issuance costs	$ 84,000,000		$ 84,000,000		$ 86,800,000
Borrowing from related party						$ 2,350,000
Borrowings from related party					500,000
Ed Anakar [Member]
Related Party Transaction [Line Items]
Borrowings from related party						$ 500,000
Sherwood Forest Creations, LLC [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	0	$ 12,990	72,809	$ 120,805
Due from related parties	13,705		13,705		6,588
TW Mechanical LLC [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	11,363	0	37,605	206
Due from related parties	4,439		4,439		$ 0
TW Mechanical LLC [Member] | Third-Party General Contractor [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$ 0	$ 0	$ 18,758	$ 435,800

Schedule of Future Minimum Rent

Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases
2020	$ 3,237
2021	3,154
2022	3,057
2023	2,889
2024	2,850
Thereafter	21,038
Total future minimum lease obligations	$ 36,225

Schedule of Future Maturities o

Schedule of Future Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2020USD ($)
Lessor, Lease, Description [Line Items]
July 2020 – June 2021	$ 3,203
July 2021 – June 2022	3,236
July 2022 – June 2023	3,115
July 2023 – June 2024	3,048
July 2024 – June 2025	3,106
Thereafter	24,500
Future maturities of lease liabilities	40,208
Principal Payments [Member]
Lessor, Lease, Description [Line Items]
July 2020 – June 2021	1,586
July 2021 – June 2022	1,719
July 2022 – June 2023	1,703
July 2023 – June 2024	1,738
July 2024 – June 2025	1,906
Thereafter	18,797
Future maturities of lease liabilities	27,449
Interest Payments [Member]
Lessor, Lease, Description [Line Items]
July 2020 – June 2021	1,617
July 2021 – June 2022	1,517
July 2022 – June 2023	1,412
July 2023 – June 2024	1,310
July 2024 – June 2025	1,200
Thereafter	5,703
Future maturities of lease liabilities	$ 12,759

Schedule of Lease Expense (Deta

Schedule of Lease Expense (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)
Lessor, Lease, Description [Line Items]
Operating lease expense – fixed payments	$ 839	$ 2,519
Variable lease expense	158	288
Short-term equipment and other lease expense (includes $12 and $303 recorded in advertising and marketing, and $72 and $297 recorded in repairs and maintenance for the three and nine months ended June 30, 2020, respectively; see Note 5)	97	856
Sublease income	(2)	(8)
Total lease expense, net	1,092	3,655
Operating cash outflows from operating leases	$ 1,051	$ 3,513
Weighted average remaining lease term	13 years	13 years
Weighted average discount rate	6.10%	6.10%
Equipment [Member]
Lessor, Lease, Description [Line Items]
Advertising and marketing	$ 12	$ 303
Repairs and maintenance	$ 72	$ 297

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Lease expense	$ 1,092,000		$ 3,655,000
Lease expense under ASC 840		$ 965,000		$ 2,900,000
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Lease expense	$ 0	$ 19,500	$ 19,500	$ 58,500
Lease expiration date			Dec. 31, 2019