Cover
Cover - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 08, 2020 | Mar. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 83,621,092 | ||
Entity Common Stock, Shares Outstanding | 8,999,910 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 15,605 | $ 14,097 | |
Accounts receivable, net | 6,767 | 7,408 | |
Current portion of notes receivable | 201 | 954 | |
Inventories | 2,372 | 2,598 | |
Prepaid insurance | 4,884 | 5,446 | |
Other current assets | 1,604 | 2,521 | |
Assets held for sale | 2,866 | ||
Total current assets | 31,433 | 35,890 | |
Property and equipment, net | 181,383 | 183,956 | |
Operating lease right-of-use assets, net | 25,546 | ||
Notes receivable, net of current portion | 2,908 | 4,211 | |
Goodwill | 45,686 | 53,630 | |
Intangibles, net | 73,077 | 75,951 | |
Other assets | 900 | 1,118 | |
Total assets | [1] | 360,933 | 354,756 |
Current liabilities | |||
Accounts payable | 4,799 | 3,810 | |
Accrued liabilities | 14,573 | 14,644 | |
Current portion of long-term debt | 16,304 | 15,754 | |
Current portion of operating lease liabilities | 1,628 | ||
Total current liabilities | 37,304 | 34,208 | |
Deferred tax liability, net | 20,390 | 21,658 | |
Debt, net of current portion and debt discount and issuance costs | 125,131 | 127,774 | |
Operating lease liabilities, net of current portion | 25,439 | ||
Other long-term liabilities | 362 | 1,696 | |
Total liabilities | 208,626 | 185,336 | |
Commitments and contingencies (Note 12) | |||
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; 9,075 shares and 9,591 shares issued and outstanding as of September 30, 2020 and 2019, respectively | 91 | 96 | |
Additional paid-in capital | 51,833 | 61,312 | |
Retained earnings | 100,797 | 108,168 | |
Total RCIHH stockholders’ equity | 152,721 | 169,576 | |
Noncontrolling interests | (414) | (156) | |
Total equity | 152,307 | 169,420 | |
Total liabilities and equity | $ 360,933 | $ 354,756 | |
[1] | See Note 4 for a discussion of revision of prior year immaterial misstatement. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 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 | 9,075,000 | 9,591,000 |
Common stock, shares outstanding | 9,075,000 | 9,591,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | |||
Total revenues | $ 132,327 | $ 181,059 | $ 165,748 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 19,435 | 24,937 | 22,909 |
Salaries and wages | 39,070 | 49,833 | 44,547 |
Selling, general and administrative | 51,692 | 59,896 | 53,824 |
Depreciation and amortization | 8,836 | 9,072 | 7,722 |
Other charges, net | 10,548 | 2,620 | 9,184 |
Total operating expenses | 129,581 | 146,358 | 138,186 |
Income from operations | 2,746 | 34,701 | 27,562 |
Other income (expenses) | |||
Interest expense | (9,811) | (10,209) | (9,954) |
Interest income | 324 | 309 | 234 |
Unrealized loss on equity securities | (64) | (612) | |
Income (loss) before income taxes | (6,805) | 24,189 | 17,842 |
Income tax expense (benefit) | (493) | 3,744 | (3,118) |
Net income (loss) | (6,312) | 20,445 | 20,960 |
Net loss (income) attributable to noncontrolling interests | 227 | (151) | (81) |
Net income (loss) attributable to RCIHH common stockholders | $ (6,085) | $ 20,294 | $ 20,879 |
Earnings (loss) per share | |||
Basic and diluted | $ (0.66) | $ 2.10 | $ 2.15 |
Weighted average number of common shares outstanding | |||
Basic and diluted | 9,199 | 9,657 | 9,719 |
Dividends per share | $ 0.14 | $ 0.13 | $ 0.12 |
Sales of Alcoholic Beverages [Member] | |||
Revenues | |||
Total revenues | $ 59,080 | $ 75,140 | $ 69,120 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 11,097 | 15,303 | 14,327 |
Food and Beverage [Member] | |||
Revenues | |||
Total revenues | 24,460 | 25,830 | 22,433 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 8,071 | 9,056 | 8,133 |
Service [Member] | |||
Revenues | |||
Total revenues | 41,162 | 68,055 | 64,104 |
Other [Member] | |||
Revenues | |||
Total revenues | 7,625 | 12,034 | 10,091 |
Service and Other [Member] | |||
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | $ 267 | $ 578 | $ 449 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | |||
Net income (loss) | $ (6,312) | $ 20,445 | $ 20,960 |
Amount reclassified from accumulated other comprehensive income | (220) | ||
Other comprehensive income: | |||
Unrealized holding gain on available-for-sale securities, net of tax of $85 in 2018 | 220 | ||
Comprehensive income (loss) | (6,312) | 20,225 | 21,180 |
Comprehensive loss (income) attributable to noncontrolling interests | 227 | (151) | (81) |
Comprehensive income (loss) attributable to RCI Hospitality Holdings, Inc. | $ (6,085) | $ 20,074 | $ 21,099 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Income Statement [Abstract] | |
Gain on available-for-sale securities, net of tax | $ 85 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | 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, 2017 | $ 97 | $ 63,453 | $ 69,195 | $ 2,480 | $ 135,225 | ||
Beginning balance, shares at Sep. 30, 2017 | 9,719,000 | ||||||
Payment of dividends | (1,168) | (1,168) | |||||
Payments to noncontrolling interest | (180) | (180) | |||||
Equity impact of additional investment in TEZ | 759 | (2,484) | (1,725) | ||||
Change in marketable securities | 220 | 220 | |||||
Net loss | 20,879 | 81 | 20,960 | ||||
Ending balance, value at Sep. 30, 2018 | $ 97 | 64,212 | 88,906 | 220 | (103) | 153,332 | |
Ending balance, shares at Sep. 30, 2018 | 9,719,000 | ||||||
Net loss | 7,523 | ||||||
Ending balance, value at Dec. 31, 2018 | 160,209 | ||||||
Beginning balance, value at Sep. 30, 2018 | $ 97 | 64,212 | 88,906 | 220 | (103) | 153,332 | |
Beginning balance, shares at Sep. 30, 2018 | 9,719,000 | ||||||
Payment of dividends | (1,252) | (1,252) | |||||
Payments to noncontrolling interest | (70) | (70) | |||||
Reclassification upon adoption of ASU 2016-01 | 220 | (220) | |||||
Purchase of treasury shares | $ (2,901) | (2,901) | |||||
Purchase of treasury shares | (128,000) | ||||||
Canceled treasury shares | $ (1) | (2,900) | $ 2,901 | ||||
Canceled treasury shares, shares | (128,000) | 128,000 | |||||
Divestiture in other entities | (134) | (134) | |||||
Net loss | 20,294 | 151 | 20,445 | ||||
Ending balance, value at Sep. 30, 2019 | $ 96 | 61,312 | 108,168 | (156) | 169,420 | ||
Ending balance, shares at Sep. 30, 2019 | 9,591,000 | ||||||
Payment of dividends | (1,286) | (1,286) | |||||
Payments to noncontrolling interest | (31) | (31) | |||||
Purchase of treasury shares | $ (9,484) | (9,484) | |||||
Purchase of treasury shares | (516,000) | ||||||
Canceled treasury shares | $ (5) | (9,479) | $ 9,484 | ||||
Canceled treasury shares, shares | (516,000) | 516,000 | |||||
Net loss | (6,085) | (227) | (6,312) | ||||
Ending balance, value at Sep. 30, 2020 | $ 91 | $ 51,833 | $ 100,797 | $ (414) | $ 152,307 | ||
Ending balance, shares at Sep. 30, 2020 | 9,075,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (6,312) | $ 20,445 | $ 20,960 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 8,836 | 9,072 | 7,722 |
Deferred tax expense (benefit) | (1,268) | 821 | (6,775) |
Loss (gain) on sale of businesses and assets | (777) | (2,966) | 2,162 |
Impairment of assets | 10,615 | 6,040 | 5,570 |
Amortization of debt discount and issuance costs | 236 | 334 | 560 |
Doubtful accounts expense on notes receivable | 602 | ||
Unrealized loss on equity securities | 64 | 612 | |
Loss (gain) on insurance | 596 | (288) | (20) |
Noncash lease expense | 1,660 | ||
Deferred rent expense | 282 | 203 | |
Debt prepayment penalty | 543 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (294) | 457 | (3,622) |
Inventories | 226 | (216) | (199) |
Prepaid insurance, other current assets and other assets | 1,633 | (681) | (2,589) |
Accounts payable and accrued liabilities | (185) | 3,262 | 1,254 |
Net cash provided by operating activities | 15,632 | 37,174 | 25,769 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of businesses and assets | 2,221 | 7,223 | 811 |
Proceeds from notes receivable | 1,576 | 158 | 127 |
Proceeds from insurance | 945 | 100 | 20 |
Issuance of notes receivable | (420) | ||
Payments for property and equipment and intangible assets | (5,736) | (20,708) | (25,263) |
Acquisition of businesses, net of cash acquired | (13,500) | (2,034) | |
Net cash used in investing activities | (994) | (27,147) | (26,339) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 6,503 | 13,511 | 84,233 |
Payments on long-term debt | (8,832) | (22,924) | (72,830) |
Purchase of treasury stock | (9,484) | (2,901) | |
Payment of dividends | (1,286) | (1,252) | (1,168) |
Payment of loan origination costs | (20) | (1,138) | |
Debt prepayment penalty | (543) | ||
Distribution to noncontrolling interests | (31) | (70) | (180) |
Net cash provided by (used in) financing activities | (13,130) | (13,656) | 8,374 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,508 | (3,629) | 7,804 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 14,097 | 17,726 | 9,922 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 15,605 | 14,097 | 17,726 |
CASH PAID DURING YEAR FOR: | |||
Interest paid, net of amounts capitalized | 8,695 | 9,797 | 9,685 |
Income taxes paid (net of refunds of $153, $42, and $42 in 2020, 2019, and 2018, respectively) | 2,200 | 3,686 | 5,832 |
Non-cash investing and financing transactions: | |||
Debt incurred with seller in connection with acquisition of businesses | 12,000 | 1,000 | |
Notes receivable received as proceeds from sale of assets | 1,775 | ||
Unrealized gain on marketable securities | 305 | ||
Accounts receivable converted to notes receivable | 122 | ||
Refinanced long-term debt | 11,292 | 400 | 8,354 |
Net increase in notes payable from trade-in of aircraft | 5,063 | ||
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 | $ 29 | $ 476 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | |||
Income tax refunds | $ 153 | $ 42 | $ 42 |
Nature of Business
Nature of Business | 12 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business RCI Hospitality Holdings, Inc. (the “Company,” “we,” “us,” or “our”) is a holding company incorporated in Texas in 1994. Through its subsidiaries, the Company currently owns and operates establishments that offer live adult entertainment, restaurant, and/or bar operations. These establishments are located in Houston, Austin, San Antonio, Dallas, Fort Worth, Odessa, Lubbock, Longview, Abilene, Edinburg, El Paso, Harlingen and Beaumont, Texas, as well as Minneapolis, Minnesota; Pittsburgh, Pennsylvania; Charlotte, North Carolina; New York, New York; Pembroke Park and Miami Gardens, Florida; Phoenix, Arizona; Sulphur, Louisiana; and Chicago, Washington Park and Kappa, Illinois. The Company also owns and operates media businesses for adults. The Company’s corporate offices are located in Houston, Texas. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Accounting The accounts are maintained and the consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which a controlling interest is owned. Intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year ends on September 30. References to years 2020, 2019, and 2018 are for fiscal years ended September 30, 2020, 2019, and 2018, respectively. Our fiscal quarters chronologically end on December 31, March 31, June 30 and September 30. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts in the consolidated financial statements and accompanying notes. Estimates and assumptions are based on historical experience, forecasted future events, and various other assumptions that we believe to be reasonable under the circumstances. Estimates and assumptions may vary under different circumstances and conditions. We evaluate our estimates and assumptions on an ongoing basis. Cash and Cash Equivalents The Company considers as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued Accounts and Notes Receivable Accounts receivable for club and restaurant operations are primarily comprised of credit card charges, which are generally converted to cash in two to five days after a purchase is made. The media division’s accounts receivable are primarily comprised of receivables for advertising sales and Expo registration. Accounts receivable also include employee advances, construction advances, and other miscellaneous receivables. Long-term notes receivable, which have original maturity of more than one year, include consideration from the sale of certain investment interest entities and real estate. The Company recognizes interest income on notes receivable based on the terms of the agreement and based upon management’s evaluation that the notes receivable and interest income will be collected. The Company recognizes allowances for doubtful accounts or notes when, based on management judgment, circumstances indicate that accounts or notes receivable will not be collected. Allowance for doubtful accounts balance related to accounts receivable was $ 261 101 182 0 Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at net realizable value. Property and Equipment Property and equipment are stated at cost. Provisions for depreciation and amortization are made using straight-line rates over the estimated useful lives of the related assets, and the shorter of useful lives or terms of the applicable leases for leasehold improvements. Buildings have estimated useful lives ranging from 29 40 5 7 156 597 319 Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized but reviewed on an annual basis for impairment. Definite-lived intangible assets are amortized on a straight-line basis over their estimated lives. The costs of transferable licenses purchased through open markets are capitalized as indefinite-lived intangible assets. The costs of obtaining non-transferable licenses that are directly issued by local government agencies are expensed as incurred. Annual license renewal fees are expensed over their renewal term. Goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued For our goodwill impairment review, we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. The fair value is determined using market-related valuation models, including earnings multiples, discounted cash flows, and comparable asset market values. We recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit, not to exceed the amount of goodwill allocated to the reporting unit, based on the results of our Step 1 analysis. For the year ended September 30, 2020, we identified seven reporting units that were impaired and recognized a goodwill impairment loss totaling $ 7.9 1.6 834 For indefinite-lived intangibles, specifically SOB licenses, we determine fair value by estimating the multiperiod excess earnings of the asset. For indefinite-lived tradename, we determine fair value by using the relief from royalty method. The fair value is then compared to the carrying value and an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the asset. We recorded impairment charges for SOB licenses amounting to $ 2.3 178 3.1 Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, intangible assets subject to amortization, and right-of-use assets on operating leases for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. These events or changes in circumstances include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for the overall business, and significant negative industry or economic trends. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group. If the asset group is not recoverable, the impairment loss is calculated as the excess of the carrying value over the fair value. We define our asset group as an operating club or restaurant location, which is also our reporting unit or the lowest level for which cash flows can be identified. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. For assets held for sale, we measure fair value using an estimation based on quoted prices for similar items in active or inactive markets (level 2) developed using observable data. The assets and liabilities of a disposal group classified as held for sale are presented separately in the appropriate asset and liability sections of the balance sheet. During fiscal 2020, the Company impaired one club and one Bombshells unit for a total of $ 302 ,000; during fiscal 2019, the Company impaired two clubs for a total of $ 4.2 million; and during fiscal 2018, the Company impaired one club and one Bombshells for a total of $ 1.6 million. The Company also impaired one club in fiscal of 2020 for operating lease right-of-use assets amounting to $ 104 ,000. See Notes 7 and 18. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued Fair Value of Financial Instruments The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of notes receivable and short and long-term debt also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. Comprehensive Income (Loss) Comprehensive income (loss) is the total of net income or loss and all other changes in net assets arising from non-owner sources, which are referred to as items of other comprehensive income (loss). An analysis of changes in components of accumulated other comprehensive income is presented in the consolidated statements of comprehensive income (loss). Revenue Recognition 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 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 Refer to Notes 5 and 22 for additional disclosures on revenues and leases, respectively. Advertising and Marketing Advertising and marketing expenses are primarily comprised of costs related to public advertisements and giveaways, which are used for promotional purposes. Advertising and marketing expenses are expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. See Note 6. Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax and income taxes imposed in the state and local jurisdictions where we operate our businesses. Deferred income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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 effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued U.S. GAAP creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. Investments Investments in companies in which the company has a 20% to 50% interest are accounted for using the equity method, which are carried at cost and adjusted for the Company’s proportionate share of their undistributed earnings or losses. Investments in companies in which the Company owns less than a 20% interest, or where the Company does not exercise significant influence, are accounted for at cost and reviewed for any impairment. Cost and equity method investments are included in other assets in the Company’s consolidated balance sheets. In relation to the reacquisition of Drink Robust in 2018, which we partially sold in fiscal 2016, we have consolidated the operations of Drink Robust and eliminated the investment in consolidation. See Note 16. Paycheck Protection Program The Company’s policy is to account for the Paycheck Protection Program (“PPP”) loan as debt (see Note 10). The Company will continue to record the loan as debt until either (1) the loans are partially or entirely forgiven and the Company has been legally released from the obligation, at which point the amount forgiven will be recorded as income, or (2) the Company pays off the loans. Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect the potential dilution of securities that could share in the earnings or losses of the Company. Potential common stock shares consist of shares that may arise from outstanding dilutive common restricted stock, stock options and warrants (the number of which is computed using the treasury stock method) and from outstanding convertible debentures (the number of which is computed using the if-converted method). Diluted earnings (loss) per share considers the potential dilution that could occur if the Company’s outstanding common restricted stock, stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings or losses (as adjusted for interest expense, that would no longer be incurred if the debentures were converted). RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued During the years ended September 30, 2020, 2019, and 2018, the Company did not have any outstanding dilutive securities that are considered adjustment items to reconcile the numerator and the denominator in the calculation of basic and diluted earnings (loss) per share. Stock Options The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and recognized as expense over their requisite service period. The Company estimates grant date fair value using the Black-Scholes option-pricing model. The critical estimates are volatility, expected life and risk-free rate. At September 30, 2020 and 2019, the Company has no stock options outstanding, and as of September 30, 2020, the Company’s 2010 Stock Option Plan contractually expired. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued Legal and Other Contingencies The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated. In the opinion of management, there was not at least a reasonable possibility that we may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. The Company recognizes legal fees and expenses, including those related to legal contingencies, as incurred. Generally, the Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved. The Company maintains insurance that covers claims arising from risks associated with the Company’s business including claims for workers’ compensation, general liability, property, auto, and business interruption coverage. The Company carries substantial insurance to cover such risks with large deductibles and/or self-insured retention. These policies have been structured to limit our per-occurrence exposure. The Company believes, and the Company’s experience has been, that such insurance policies have been sufficient to cover such risks. Fair Value Accounting The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its marketable securities as available-for-sale, which are reported at fair value. Unrealized holding gains and losses, net of the related income tax effect, if any, on available-for-sale securities were excluded from income and were reported as accumulated other comprehensive income in equity until our adoption of ASU 2016-01 as of October 1, 2018. Realized gains and losses (and unrealized gains and losses upon the adoption of ASU 2016-01) from securities classified as available-for-sale are included in comprehensive income (loss). The Company measures the fair value of its marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. Available-for-sale securities, which are included in other assets in the consolidated balance sheets, had a balance of $ 84 ,000 and $ 148 ,000 as of September 30, 2020 and 2019. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued In accordance with U.S. GAAP, the Company reviews its marketable securities to determine whether a decline in fair value of a security below the cost basis is other than temporary. Should the decline be considered other than temporary, the Company writes down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses or other-than-temporary impairments in our marketable securities portfolio were recognized during the years ended September 30, 2020, 2019, and 2018. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to tangible property and equipment, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. For these assets, the Company does not periodically adjust carrying value to fair value except in the event of impairment. If it is determined that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is included in other charges, net in the consolidated statements of operations. Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2020 (Level 1) (Level 2) (Level 3) Property and equipment $ 6,042 $ - $ - $ 6,042 Indefinite-lived intangibles 656 - - 656 Goodwill 5,883 - - 5,883 Operating lease right-of-use assets * 27,310 - - 27,310 Operating lease liabilities * (28,551 ) - - (28,551 ) Other assets (equity securities) 84 84 - - * Measured at October 1, 2019 upon the adoption of ASC 842. Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2019 (Level 1) (Level 2) (Level 3) Property and equipment $ 10,926 $ - $ - $ 10,926 Indefinite-lived intangibles 5,323 - - 5,323 Definite-lived intangibles 200 - - 200 Goodwill 11,627 - - 11,627 Other assets (equity securities) 148 148 - - RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued Unrealized Gain (Loss/Impairments) Recognized Years Ended September 30, Description 2020 2019 2018 Goodwill $ (7,944 ) $ (1,638 ) $ (834 ) Property and equipment, net (302 ) (4,224 ) (1,615 ) Indefinite-lived intangibles (2,265 ) (178 ) (3,121 ) Operating lease right-of-use assets (104 ) - - Other assets (equity securities) (64 ) (612 ) 305 Impact of Recently Issued Accounting Standards 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 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 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 Consolidated Financial Statements |
Liquidity and Impact of COVID-1
Liquidity and Impact of COVID-19 Pandemic | 12 Months Ended |
Sep. 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. 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 were mandated or encouraged by federal, state and local governments. Since March 2020, we have temporarily closed and reopened several of our clubs and restaurants. The temporary 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 are allowed to 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 PPP of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) for its restaurants, shared service entity and lounge. See Notes 10 and 11. Ten of our restaurant subsidiaries received amounts ranging from $ 271 ,000 to $ 579 ,000 for an aggregate amount of $ 4.2 million; our shared-services subsidiary received $ 1.1 million; and one of our lounges received $ 124 ,000. None of our adult nightclub and other non-core business subsidiaries received funding under the PPP. The Company believes it has used the entire loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company has currently utilized all of the PPP funds and has submitted its forgiveness applications. As of the filing of this report, we have received ten Notices of PPP Forgiveness Payment from the Small Business Administration out of the twelve of our PPP loans granted. All of the notices received forgave 100% of each of the ten PPP loans totaling the amount of $ 4.9 As of the release of this report, we do not know the future extent and duration of the impact of COVID-19 on our businesses. Lower sales, as caused by local, state and national 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 certain operating hour restrictions and with limited occupancy. 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 we conducted during the quarters since the pandemic emerged, we determined that as of September 30, 2020 our assets are impaired in a total amount of approximately $ 10.6 million comprised of $ 7.9 million in goodwill, $ 2.3 million in SOB licenses, $ 302 ,000 in property and equipment, and $ 104 ,000 in operating lease right-of-use assets. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Revision of Prior Year Immateri
Revision of Prior Year Immaterial Misstatement | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Year Immaterial Misstatement | 4. Revision of Prior Year Immaterial Misstatement During the fourth quarter ended September 30, 2020, the Company identified an error in the calculation of income taxes in relation to a disposed entity during the fiscal 2019 first quarter ended December 31, 2018. The error related to the recognition of income tax receivable on the disposed entity. The Company determined the amount of the income tax receivable to be recognized with a consequent credit to income tax expense as $ 1.1 The Company assessed the materiality of the error considering both qualitative and quantitative factors and determined that the error was immaterial for fiscal 2019 but material if recorded as an out-of-period adjustment in fiscal 2020. Therefore, the Company has decided to correct the error as a revision to our previously issued financial statements and has adjusted this Form 10-K insofar as fiscal 2019 is concerned. The tables below present the impact of the revision in the Company’s consolidated financial statements (in thousands, except per share amounts): Schedule of Impact of Revisions in Financial Statements Fiscal 2019 First Quarter Full Year Consolidated Statement of Income/Comprehensive Income: As previously reported — Income tax expense $ 1,811 $ 4,863 Net income $ 6,404 $ 19,326 Net income attributable to RCIHH common stockholders $ 6,344 $ 19,175 Earnings per share - basic and diluted $ 0.65 $ 1.99 Comprehensive income $ 6,404 $ 19,106 Comprehensive income attributable to RCIHH common stockholders $ 6,344 $ 18,955 Adjustments — Income tax expense $ (1,119 ) $ (1,119 ) Net income $ 1,119 $ 1,119 Net income attributable to RCIHH common stockholders $ 1,119 $ 1,119 Earnings per share - basic and diluted $ 0.12 $ 0.12 Comprehensive income $ 1,119 $ 1,119 Comprehensive income attributable to RCIHH common stockholders $ 1,119 $ 1,119 As revised — Income tax expense $ 692 $ 3,744 Net income $ 7,523 $ 20,445 Net income attributable to RCIHH common stockholders $ 7,463 $ 20,294 Earnings per share - basic and diluted $ 0.77 $ 2.10 Comprehensive income $ 7,523 $ 20,225 Comprehensive income attributable to RCIHH common stockholders $ 7,463 $ 20,074 December 31, March 31, June 30, September 30, December 31, March 31, June 30, Consolidated Balance Sheet: As previously reported — Accounts receivable, net $ 5,583 $ 5,579 $ 5,001 $ 6,289 $ 3,131 $ 3,559 $ 5,529 Total current assets $ 25,067 $ 21,859 $ 22,597 $ 34,771 $ 30,899 $ 26,767 $ 28,350 Total assets $ 349,522 $ 350,873 $ 350,878 $ 353,637 $ 376,173 $ 361,896 $ 360,374 Retained earnings $ 95,179 $ 101,623 $ 106,976 $ 107,049 $ 112,404 $ 108,584 $ 102,837 Total RCIHH stockholders’ equity $ 159,133 $ 163,971 $ 168,921 $ 168,457 $ 167,371 $ 161,504 $ 155,757 Total equity $ 159,090 $ 163,936 $ 168,906 $ 168,301 $ 167,205 $ 161,276 $ 155,435 Adjustments — Accounts receivable, net $ 1,119 Total current assets $ 1,119 Total assets $ 1,119 Retained earnings $ 1,119 Total RCIHH stockholders’ equity $ 1,119 Total equity $ 1,119 As revised — Accounts receivable, net $ 6,702 $ 6,698 $ 6,120 $ 7,408 $ 4,250 $ 4,678 $ 6,648 Total current assets $ 26,186 $ 22,978 $ 23,716 $ 35,890 $ 32,018 $ 27,886 $ 29,469 Total assets $ 350,641 $ 351,992 $ 351,997 $ 354,756 $ 377,292 $ 363,015 $ 361,493 Retained earnings $ 96,298 $ 102,742 $ 108,095 $ 108,168 $ 113,523 $ 109,703 $ 103,956 Total RCIHH stockholders’ equity $ 160,252 $ 165,090 $ 170,040 $ 169,576 $ 168,490 $ 162,623 $ 156,876 Total equity $ 160,209 $ 165,055 $ 170,025 $ 169,420 $ 168,324 $ 162,395 $ 156,554 The consolidated statement of cash flows are not presented because there is no impact on total cash flows from operating, investing, and financing activities. Certain components of net cash provided by operating activities changed due to the revision but the net change amounted to zero for both the quarter ended December 31, 2018 and fiscal year ended September 30, 2019. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Revenues
Revenues | 12 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 5. Revenues Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 19), are shown below (in thousands). Schedule of Disaggregation of Segment Revenues Fiscal 2020 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 31,950 $ 27,130 $ - $ 59,080 Sales of food and merchandise 8,561 15,899 - 24,460 Service revenues 41,004 158 - 41,162 Other revenues 6,858 28 739 7,625 $ 88,373 $ 43,215 $ 739 $ 132,327 Recognized at a point in time $ 87,049 $ 43,215 $ 725 $ 130,989 Recognized over time 1,324 - 14 1,338 $ 88,373 $ 43,215 $ 739 $ 132,327 Fiscal 2019 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 57,277 $ 17,863 $ - $ 75,140 Sales of food and merchandise 13,051 12,779 - 25,830 Service revenues 67,893 162 - 68,055 Other revenues 10,385 24 1,625 12,034 $ 148,606 $ 30,828 $ 1,625 $ 181,059 Recognized at a point in time $ 146,938 $ 30,828 $ 1,572 $ 179,338 Recognized over time 1,668 - 53 1,721 $ 148,606 $ 30,828 $ 1,625 $ 181,059 Fiscal 2018 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 54,800 $ 14,320 $ - $ 69,120 Sales of food and merchandise 12,732 9,701 - 22,433 Service revenues 64,054 50 - 64,104 Other revenues 8,474 23 1,594 10,091 $ 140,060 $ 24,094 $ 1,594 $ 165,748 Recognized at a point in time $ 138,847 $ 24,094 $ 1,516 $ 164,457 Recognized over time 1,213 - 78 1,291 $ 140,060 $ 24,094 $ 1,594 $ 165,748 * Lease revenue (included in Other Revenues) is covered by ASC 842 in the current year (and ASC 840 in the prior years. All other revenues are covered by ASC Topic 606. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 5. Revenues - continued 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 consolidated balance sheet. A reconciliation of contract liabilities with customers, included in accrued liabilities in our consolidated balance sheets, is presented below: Schedule of Reconciliation of Contract Liabilities with Customers Balance at September 30, 2018 Consideration Received Recognized in Revenue Balance at September 30, 2019 Consideration Received Recognized in Revenue Balance at September 30, 2020 Ad revenue $ 126 $ 602 $ (652 ) $ 76 $ 538 $ (522 ) $ 92 Expo revenue - 602 (602 ) - 211 - 211 Other 8 52 (53 ) 7 40 (14 ) 33 $ 134 $ 1,256 $ (1,307 ) $ 83 $ 789 $ (536 ) $ 336 |
Selected Account Information
Selected Account Information | 12 Months Ended |
Sep. 30, 2020 | |
Selected Account Information | |
Selected Account Information | 6. Selected Account Information The components of accounts receivable, net are as follows (in thousands): Schedule of Accounts Receivable 2020 2019 September 30, 2020 2019 (As Revised) Credit card receivables $ 880 $ 1,396 Income tax refundable 4,325 2,900 Insurance receivable 191 1,197 ATM-in-transit 160 780 Other (net of allowance for doubtful accounts of $ 261 101 1,211 1,135 Accounts receivable, net $ 6,767 $ 7,408 Notes receivable consist primarily of secured promissory notes executed between the Company and various buyers of our businesses and assets with interest rates ranging from 6% 9% 1 20 The components of accrued liabilities are as follows (in thousands): Schedule of Accrued Liabilities 2020 2019 September 30, 2020 2019 Insurance $ 4,405 $ 4,937 Payroll and related costs 2,419 2,892 Property taxes 2,003 1,675 Sales and liquor taxes 2,613 3,086 Interest 1,390 508 Patron tax 309 595 Lawsuit settlement 100 115 Unearned revenues 336 83 Other 998 753 Accrued liabilities $ 14,573 $ 14,644 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 6. Selected Account Information - continued The components of selling, general and administrative expenses are as follows (in thousands): Schedule of Selling, General and Administrative Expenses 2020 2019 2018 Years Ended September 30, 2020 2019 2018 Taxes and permits $ 8,071 $ 10,779 $ 9,545 Advertising and marketing 5,367 8,392 7,536 Supplies and services 4,711 5,911 5,344 Insurance 5,777 5,429 5,473 Lease 4,060 3,896 3,720 Legal 4,725 5,180 3,586 Utilities 2,945 3,165 2,969 Charge cards fees 2,382 3,803 3,244 Security 2,582 2,973 2,617 Accounting and professional fees 3,463 2,815 2,944 Repairs and maintenance 2,289 2,980 2,184 Other 5,320 4,573 4,662 Selling, general and administrative expenses $ 51,692 $ 59,896 $ 53,824 The components of other charges, net are as follows (in thousands): Schedule of Components of Other Charges, Net 2020 2019 2018 Years Ended September 30, 2020 2019 2018 Impairment of assets $ 10,615 $ 6,040 $ 5,570 Settlement of lawsuits 174 225 1,669 Loss (gain) on sale of businesses and assets (661 ) (2,877 ) 1,965 Loss (gain) on insurance 420 (768 ) (20 ) Other charges $ 10,548 $ 2,620 $ 9,184 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment Property and equipment consisted of the following (in thousands): Schedule of Property, Plant and Equipment September 30, 2020 2019 Buildings and land $ 163,938 $ 159,969 Equipment 37,000 37,031 Leasehold improvements 29,776 32,868 Furniture 9,614 9,393 Total property and equipment 240,328 239,261 Less accumulated depreciation (58,945 ) (55,305 ) Property and equipment, net $ 181,383 $ 183,956 Included in buildings and leasehold improvements above are construction-in-progress amounting to $ 20 8.9 Depreciation expense was approximately $ 8.2 8.4 7.5 302 4.2 1.6 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Sep. 30, 2020 | |
Assets Held For Sale | |
Assets Held for Sale | 8. 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 During the three months ended June 30, 2020, the Company sold one held-for-sale property valued at $ 853 1.5 During the three months ended September 30, 2020, the Company reverted the remaining held-for-sale real estate property with a 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 September 30, 2019. Gains or losses on the sale of properties held for sale are included in other charges (gains), net within the consolidated statements of operations. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following (in thousands): Schedule of Goodwill and Other Intangible Assets September 30, 2020 2019 Indefinite useful lives: Goodwill $ 45,686 $ 53,630 Licenses 70,332 72,597 Tradename 2,215 2,215 118,233 128,442 Amortization Period Definite useful lives: Discounted leases 18 6 93 101 Non-compete agreements 5 362 565 Software 5 23 315 Distribution agreement 3 52 158 530 1,139 Total goodwill and other intangible assets $ 118,763 $ 129,581 Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill 2020 2019 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 1,139 $ 74,812 $ 53,630 $ 1,794 $ 69,738 $ 43,591 Acquisitions - - - 243 5,252 11,677 Impairment - (2,265 ) (7,944 ) - (178 ) (1,638 ) Amortization (609 ) - - (898 ) - - Ending balance $ 530 $ 72,547 $ 45,686 $ 1,139 $ 74,812 $ 53,630 As of September 30, 2020 and 2019, the accumulated impairment balance of indefinite-lived intangibles was $ 8.4 million and $ 6.1 million, respectively, while the accumulated impairment balance of goodwill was $ 14.3 million and $ 6.3 million, respectively. Future amortization expense related to definite-lived intangible assets that are subject to amortization at September 30, 2020 is: 2021 - $ 263 ,000; 2022 - $ 134 ,000; 2023 - $ 59 ,000; 2024 - $ 11 ,000; 2025 - $ 7 ,000; and thereafter - $ 56 ,000. Indefinite-lived intangible assets consist of sexually oriented business licenses and tradename, which were obtained as part of acquisitions. These licenses are the result of zoning ordinances, thus are valid indefinitely, subject to filing annual renewal applications, which are done at minimal costs to the Company. The discounted cash flow of the income approach method was used in calculating the value of these licenses in a business combination, while the relief-from-royalty method was used in calculating the value of tradenames. During the fiscal year ended September 30, 2020, the Company recognized a $ 2.3 7.9 178 1.6 3.1 834 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Debt
Debt | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Long-term debt consisted of the following (in thousands): Schedule of Long-term Debt September 30, 2020 2019 Notes payable at 5.5 January 2023 (d)(1) $ 886 $ 981 Non-interest-bearing debts to State of Texas, mature March 2022 and May 2022 9.6 (d)(2) 2,177 3,379 Note payable at 5.75% , matures December 2027, as amended *(a)(6ii)(7) 9,715 9,877 Note payable at 5.95 %, matures December 2027 *(a)(6iii)(7) 5,787 6,776 Note payable at 12 February 2030 (d)(3)(25) 5,031 5,518 Notes payable at 12 %, mature November 2021 , as amended (d)(4)(26) 1,940 2,040 Note payable at 8 %, matures October 2022 , as amended (b)(5)(23) 3,025 3,025 Note payable at 8 May 2029 (b)(5) 12,599 13,569 Note payable at 5.75 %, matures December 2027 *(a)(6i)(7)(8)(9) 49,830 51,167 Note payable at 5.99 %, matures September 2033 (c)(10) 6,395 6,555 Note payable at 5 August 2029 *(a)(12) 2,165 3,709 Note payable at prime plus 0.5% 5.5% September 2035 , as amended *(a)(13) 2,099 2,099 Note payable initially at prime plus 0.5 5.5 September 2030 *(a)(13) 2,861 2,619 Note payable at 8 May 2021 (a)(14) 582 771 Note payable at 5.95 %, matures August 2039 *(a)(11) 6,979 6,858 Note payable at 12 February 2030 (d)(15)(24) 3,875 4,000 Note payable at 9 September 2028 (a)(17) 1,167 1,263 Note payable at 5.95 %, matures September 2028 *(a)(16) 1,489 1,511 Note payable at 6 %, matures February 2040 *(a)(22) 4,066 3,608 Note payable at 5.49 March 2039 (c)(21) 2,125 2,156 Note payable at 7 November 2024 (b)(19) 3,319 3,982 Note payable at 7 February 2021 (b)(20) 2,000 2,000 Notes payable at 12 November 2021 (d)(18) 2,350 2,350 Note payable at 8 November 2028 (b)(20) 4,790 5,190 Paycheck Protection Program loans at 1 May 2022 (d)(27) 5,422 - Total debt 142,674 145,003 Less unamortized debt discount and issuance costs (1,239 ) (1,475 ) Less current portion (16,304 ) (15,754 ) Total long-term portion of debt, net $ 125,131 $ 127,774 * These commercial bank debts are guaranteed by the Company’s CEO. See Note 21. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 10. Debt - continued Following is a summary of long-term debt at September 30 (in thousands): Schedule of Long-term Debt Instruments 2020 2019 (a) Secured by real estate $ 86,740 $ 90,258 (b) Secured by stock in subsidiary 25,733 27,766 (c) Secured by other assets 8,520 8,711 (d) Unsecured 21,681 18,269 $ 142,674 $ 145,003 (1) In connection with the acquisition of Silver City in January 2012, the Company executed notes to the seller in the amount of $ 1.5 million. The notes are payable over eleven years 12,256 5.5 2.5 6.5 million , which have been paid off in relation to the December 2017 Refinancing Loan, as discussed below. The notes are also payable over eleven years at $ 53,110 per month including interest and have the same adjustable interest rate of 5.5% . (2) In 2015, the Company reached a settlement with the State of Texas over 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 million in equal monthly installments of $ 119,000 , without interest, over 84 months, beginning in June 2015, for all but two nonsettled locations. For accounting purposes, the Company has discounted the $10.0 million at an imputed interest rate of 9.6% , establishing a net present value for the settlement of $ 7.2 million. In March 2017, the Company settled with the State of Texas for one of the two remaining unsettled Patron Tax locations. The Company agreed to pay a total of $ 687,815 with $ 195,815 paid at the time the settlement agreement was executed followed by 60 equal monthly installments of $ 8,200 without interest. In March 2017, the present value of the second note was approximately $ 390,000 9.6 5 per customer. (3) On October 5, 2016, the Company refinanced $ 8.0 million of long-term debt by borrowing $ 9.9 million. The new unsecured debt is payable $ 118,817 per month, including interest at 12% , and matures in five years with a balloon payment for the remaining balance at maturity. This note has been partially paid in relation to the first note of the December 2017 Refinancing Loan, as discussed below. (4) On May 1, 2017, the Company raised $ 5.4 12% s mature on May 1, 2020 . The notes pay interest-only in equal monthly installments, with a lump sum principal payment at maturity. On August 15, 2018 and September 26, 2018, the Company refinanced $ 2.0 million and $ 500,000 of the notes, respectively. The $2.0 million note was exchanged for a $ 4.0 million 12% note maturing in three years with interest-only payments until maturity, where the full principal is to be paid. The $500,000 note was exchanged for a $ 1.35 million 9% note maturing in 10 years with monthly payments of $ 17,101 , including interest. On November 1, 2018, the Company refinanced two notes with a total principal of $ 400,000 with certain investors. See succeeding paragraph related to November 1, 2018 financing below. Included in the balance of long-term debt as of September 30, 2020 and 2019 is a $ 200,000 note, that is a part of the May 1, 2017 financing, borrowed from a non-officer employee in which the terms of the note are the same as the rest of the lender group. Refer to May 1, 2020 extension below. (5) On May 8, 2017, in relation to the Scarlett’s acquisition (see Note 16), the Company executed two promissory notes with the sellers: (i) a 5% short-term note for $ 5.0 million payable in lump sum after six months from closing date and (ii) a 12 -year amortizing 8% note for $ 15.6 million. The 12-year note is payable $ 168,343 per month, including interest. The Company amended the $ 5.0 million short-term note payable, which had a remaining balance of $ 3.0 million as of amendment date, several times extending the maturity date to October 1, 2022 and increasing the interest rate to 8% for its remaining term. Refer to December 2019 amendment below. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 10. Debt - continued (6) On December 14, 2017, the Company entered into a loan agreement (“December 2017 Refinancing Loan”) with a bank for $ 81.2 million. The December 2017 Refinancing Loan fully refinanced 20 of the Company’s notes payable and partially paid down 1 note payable (collectively, “Repaid Notes”) with interest rates ranging from 5 12 i) The first note amounts to $ 62.5 10 years first five years 3.5% 5.75% 442,058 20 ii) The second note amounts to $ 10.6 million with a term of 10 years at a 5.45% fixed interest rate until July 2020 , after which to be repriced at a fixed interest rate of 5.75% until the fifth anniversary of this note, and then to be repriced again at the then interest rate of the first note. This note was payable $ 78,098 monthly for principal and interest until July 2020, based upon a 20 -year amortization period, after which the monthly payment for principal and interest was adjusted accordingly based on the repricing, with the balance payable at maturity; and iii) The third note amounts to $ 8.1 10 years 5.95% until August 2021 5.75% 100,062 20 (7) In addition to the monthly principal and interest payments as provided above, the Company paid monthly installments of principal of $ 250,000 2.9 million originally scheduled in fiscal 2018, $ 19.4 million originally scheduled in fiscal 2020 and $ 5.3 million originally scheduled in fiscal 2021. There are certain financial covenants with which the Company must be in compliance related to this financing. We obtained waivers of compliance from the bank lender for financial covenants as of September 30, 2020. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 10. Debt - continued (8) In connection with the Repaid Notes, we wrote off $ 279,000 of unamortized debt issuance costs to interest expense. Prior to September 30, 2017, the Company paid a portion of debt issuance costs amounting to $ 612,500 , which was included in other assets until the closing of the transaction. At closing, the Company paid an additional $ 764,000 in debt issuance costs, which together with the $612,500 prepayment will be amortized for the term of the loan using the effective interest rate method. We also paid prepayment penalties amounting to $ 543,000 on the Repaid Notes, which was included in interest expense in our consolidated statement of operations for the year ended September 30, 2018. (9) Included in the $62.5 million first note of the December 2017 Refinancing Loan was $ 4.6 million that was escrowed at closing due to the bank lender of one of the Repaid Notes. The amount was released from escrow in June 2018 when the construction, for which the original note was borrowed, was completed. In March and August 2020, certain principal and interest payments for the three notes of the December 2017 Refinancing Loan were deferred to their maturity dates. (10) On December 7, 2017, the Company borrowed $ 7.1 million from a lender to purchase an aircraft at 5.99% interest. The transaction was partly funded by trading in an aircraft that the Company owned with a carrying value of $ 3.4 million, with an assumption of the old aircraft’s note payable liability of $ 2.0 million. The aircraft note is payable in 15 years with monthly payments of $ 59,869 , which includes interest. In March 2020, this loan was extended to September 2033 (11) On February 15, 2018, the Company borrowed $ 3.0 million from a bank for the purchase of land at a cost of $ 4.0 million with the difference paid by the Company in cash. The bank note bears interest at 5.25 1 5.2 February 15, 2038 20 7.4 million. The new note has an initial interest rate of 5.95 72 1 5.9 53,084 August 2039 (12) On February 20, 2018, the Company refinanced a bank note with a balance of $ 1.9 million, bearing interest of 2% over prime with a 5.5% floor, with the same bank for a construction loan with maximum availability of $ 4.7 million. The construction loan agreement bears an interest rate of prime plus 0.5% with a floor of 5.0% and matures on August 20, 2029 . During the first 18 months of the construction loan, the Company will make monthly interest-only payments, and after such, monthly payments of principal and interest will be made based on a 20 (13) On April 24, 2018, the Company acquired certain land for future development of a Bombshells in Houston, Texas for $ 5.5 4.0 0.5% 5% 24 months 16,396 960,000 2.9 0.5% 5.5% 12 years The first 24 months will be interest-only payments, after which monthly payments of principal and interest will be made based on a 20 -year amortization. There are certain financial covenants with which the Company must be in compliance related to this financing. We are in compliance with these financial covenants as of September 30, 2020. (14) On May 25, 2018, the Company acquired a club in Kappa, Illinois for $ 1.5 1.0 8% three years 20,276 five RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 10. Debt - continued (15) On August 15, 2018, the Company refinanced a $ 2.0 million note payable for $ 4.0 million from a private lender by executing a 12% 3 -year note payable $ 40,000 monthly starting September 15, 2018, with the remaining principal and interest balance payable at maturity. See February 20, 2020 extension below. (16) On September 6, 2018, the Company borrowed $ 1.55 million from a bank lender to finance the acquisition of the remaining not-owned interest in a joint venture. The 10 5.95 3.5 5.95 11,138 , including interest, is due for five years until an adjustment in monthly payments based on the interest rate repricing. The Company paid approximately $ 40,000 in debt issuance costs at closing. In March and August 2020, certain principal and interest payments for this note were deferred to its maturity date. There are certain financial covenants with which the Company must be in compliance related to this note. We obtained a waiver of compliance from the bank lender for financial covenants as of September 30, 2020. (17) On Septem ber 26, 2018, the Company refinanced a $ 500,000 12% note payable for $ 1.35 million from a private lender by executing a 9% 10 -y 17,101 (18) On November 1, 2018, the Company raised $ 2.35 12% November 1, 2021 450,000 200,000 300,000 100,000 2.35 500,000 100,000 300,000 (19) On November 1, 2018, we acquired a club in Chicago that was partially financed by a $ 4.5 million 6 -year 7% seller note. See additional details related to the acquisition in Note 16. (20) On November 5, 2018, we acquired a club in Pittsburgh that was partially financed by two seller notes payable. The first note is a 2 7 2.0 10 8 5.5 extended to February 2021 (21) On December 11, 2018, the Company purchased an aircraft for $ 2.8 million with a $ 554,000 down payment and financed the remaining $ 2.2 million with a 5.49% promissory note payable in 20 years with monthly payments of $ 15,118 , including interest. Certain principal and interest payments during the quarter ended June 30, 2020 were deferred until maturity date. (22) On February 8, 2019, the Company refinanced a one-year bank note with a balance of $ 1.5 million, bearing an interest rate of 6.1%, with a construction loan with another bank, which has an interest rate of 6.0% adjusted after five years to prime plus 0.5% with a 6.0% floor per annum. The new construction loan, which has a maximum availability of $ 4.1 29,571 69,000 in loan costs of which approximately $ 19,600 was capitalized as debt issuance costs on the new construction loan with the remaining charged to interest expense. The Company also wrote off the remaining unamortized debt issuance costs of the old bank note to interest expense. There are certain financial covenants with which the Company must be in compliance related to this financing. In March 2020, certain principal and interest payments for this note were deferred to its maturity date. We are in compliance with these financial covenants as of September 30, 2020. (23) In December 2019, the Company amended the $ 5.0 3.0 extending the maturity date to October 1, 2022. (24) On February 20, 2020, in relation to a $ 4.0 12% the Company restructured the note with a private lender by executing a 12% 10-year note payable 57,388 4.0 (25) On February 20, 2020, in relation to a $ 9.9 12% 5.2 by executing a 12% 10-year note payable 74,515 3.8 25,400 (26) On May 1, 2020, the Company negotiated extensions to November 1, 2020 on $ 1,740,000 2,040,000 due on May 1, 2020 300,000 200,000 1,940,000 1,690,000 extended to November 2021 (27) On May 8, 2020, the Company received approval and funding under the PPP of the CARES Act for its restaurants, shared service entity and lounge 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. All of the notices received forgave 100% of each of the ten PPP loans totaling the amount of $ 4.9 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 10. Debt – continued Future maturities of debt obligations as of September 30, 2020 consist of the following (in thousands): Schedule of Maturities of Long-term Debt Regular Amortization Balloon Payments Total Payments 2021 $ 12,098 $ 4,405 $ 16,503 2022 11,032 2,350 13,382 2023 8,090 3,676 11,766 2024 8,642 - 8,642 2025 8,479 - 8,479 Thereafter 41,911 41,991 83,902 $ 90,252 $ 52,422 $ 142,674 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017, and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% . Our federal corporate income tax rate for fiscal 2018 was 24.5% and represents a blended income tax rate for that fiscal year. For fiscal 2020 and 2019, our federal corporate income tax rate was 21% . Additionally, for the fiscal year ended September 30, 2018, in accordance with FASB ASC Topic 740, we remeasured our deferred tax balances to reflect the reduced rate that will apply when these deferred taxes are settled or realized in future periods. The remeasurement resulted in a $ 8.8 million Income tax expense (benefit) consisted of the following (in thousands): Schedule of Income Tax Expense (Benefit) 2020 2019 2018 Years Ended September 30, 2020 2019 2018 (As Revised) Current Federal $ 215 $ 1,886 $ 2,438 State and local 560 1,037 1,219 Total current income tax expense (benefit) 775 2,923 3,657 Deferred Federal (1,248 ) 913 (8,096 ) State and local (20 ) (92 ) 1,321 Total deferred income tax expense (benefit) (1,268 ) 821 (6,775 ) Total income tax expense (benefit) $ (493 ) $ 3,744 $ (3,118 ) The Company and its subsidiaries do not operate in tax jurisdictions outside of the United States. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 11. Income Taxes - continued Income tax expense (benefit) differs from the “expected” income tax expense computed by applying the U.S. federal statutory rate to earnings before income taxes for the years ended September 30 as a result of the following (in thousands): Schedule of Components of Income Tax Expense (Benefit) 2020 2019 2018 Years Ended September 30, 2020 2019 2018 Computed expected income tax expense (benefit) $ (1,429 ) $ 5,080 $ 4,371 State income taxes, net of federal benefit 253 672 804 Deferred taxes on subsidiaries acquired/sold - - 709 Permanent differences 395 45 85 Change in deferred tax liability rate - - (8,832 ) Change in valuation allowance 1,273 - - Tax credits (945 ) (900 ) (808 ) Other (40 ) (1,153 ) 553 Total income tax expense (benefit) $ (493 ) $ 3,744 $ (3,118 ) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): Schedule of Deferred Tax Assets and Liabilities 2020 2019 September 30, 2020 2019 Deferred tax assets: Patron tax $ 349 $ 621 Capital loss carryforwards 1,263 420 Other 2,046 - Valuation allowance (1,273 ) - Net deferred tax assets 2,385 1,041 Deferred tax liabilities: Intangibles (14,106 ) (14,491 ) Property and equipment (8,669 ) (8,024 ) Other - (184 ) Deferred tax liabilities (22,775 ) (22,699 ) Net deferred tax liability $ (20,390 ) $ (21,658 ) Included in the Company’s deferred tax liabilities at September 30, 2020 and 2019 is the tax effect of indefinite-lived intangible assets from club acquisitions amounting to approximately $ 14.9 million and $ 19.3 million , respectively, which are not deductible for tax purposes. These deferred tax liabilities will remain in the Company’s consolidated balance sheet until the related clubs are sold or impaired. The Company may recognize the tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. We recognize accrued interest related to unrecognized tax benefits as a component of accrued liabilities. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. In fiscal 2018, the Company released $ 700,000 of uncertain tax positions due to a settlement with New York state. In fiscal 2019, the Company released the remaining amount accrued when the examination was closed. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 11. Income Taxes - continued The following table shows the changes in the Company’s uncertain tax positions (in thousands): Schedule of Uncertain Tax Positions 2020 2019 2018 Years Ended September 30, 2020 2019 2018 Balance at beginning of year $ $ 165 $ 865 Additions for tax positions of prior years - - - Decrease related to settlements with taxing authorities - - (700 ) Reduction due to lapse from closed examination - (165 ) - Balance at end of year $ - $ - $ 165 The full balance of uncertain tax positions, if recognized, would affect the Company’s annual effective tax rate, net of any federal tax benefits. The Company does not expect any changes that will significantly impact its uncertain tax positions within the next twelve months. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. The Company’s federal income tax returns for the years ended September 30, 2013 through 2017 have been examined by the Internal Revenue Service with only immaterial changes. Fiscal year ended September 30, 2018 and subsequent years remain open to federal tax examination. The Company is also being examined for state income taxes, the outcome of which may occur within the next twelve months. On March 27, 2020, President Trump signed 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, 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 to $ 579,000 for an aggregate amount of $ 4.2 million; our shared-services subsidiary received $ 1.1 million; and one of our lounges received $124,000 All of the notices received forgave 100% of each of the ten PPP loans totaling the amount of $ 4.9 No assurance can be provided that the Company will in fact obtain forgiveness of the remaining two PPP loans in whole or in part. See Note 3. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Leases See Note 22. 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 $ 10 119,000 5 10 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 consolidated balance sheets, amounted to $ 2.2 3.4 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 Consolidated Financial Statements Legal Matters – continued 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. Gu v. RCI Hospitality Holdings, Inc., et al. Grossman v. RCI Hospitality Holdings, Inc., et al. Hoffman Grossman Gu In re RCI Hospitality Holdings, Inc. 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, Nourdean 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. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements Legal Matters – continued 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. Since the initiation of the informal inquiry in early 2019 and the investigation conducted by the SEC thereafter, the Company and its management have fully cooperated with the SEC. On September 21, 2020, the SEC concluded its investigation and reached a settlement with the Company, Eric Langan, and Phil Marshall. Separately, the SEC also reached a settlement with a former director. As part of the settlement, the Company, Eric Langan, and Phil Marshall agreed, without admitting or denying the allegations, to an order instituting cease-and-desist proceedings regarding certain sections of the Securities Exchange Act of 1934 and certain rules promulgated thereunder. The SEC’s order as to the Company, Eric Langan, and Phil Marshall found that, from fiscal 2014 through 2019, the Company failed to disclose a total of $ 615,000 The SEC’s order as to the Company, Mr. Langan, and Mr. Marshall found that the Company and Mr. Langan violated, and Mr. Langan and Mr. Marshall caused the Company to violate, the proxy solicitation provisions of Section 14(a) of the Securities Exchange Act of 1934 and Rules 14a-3 and 14a-9 thereunder. The order further found that the Company violated, and Mr. Langan and Mr. Marshall caused the Company to violate, the reporting provisions of Section 13(a) of the Exchange Act and Rules 13a-1 and 12b-20 thereunder, the books and records provisions of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and the disclosure controls provision of Rule 13a-15(a) under the Exchange Act. The Company, Mr. Langan, and Mr. Marshall have agreed, without admitting or denying the SEC’s findings, to a cease-and-desist order and to pay civil penalties in the amounts of $ 400,000 200,000 35,000 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 $ 1 690,000 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements Legal Matters – continued 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 this report, 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. Settlement of lawsuits for the years ended September 30, 2020, 2019, and 2018 total $ 174,000 225,000 1.7 100,000 115,000 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Common Stock | 13. Common Stock During the year ended September 30, 2018, the Company paid quarterly dividends of $ 0.03 1.2 During the year ended September 30, 2019, the following common stock transactions occurred: ● The Company acquired 128,040 2.9 ● The Company paid quarterly dividends of $ 0.03 0.04 1.3 During the year ended September 30, 2020, the following common stock transactions occurred: ● The Company acquired 516,102 9.5 ● The Company paid quarterly dividends of $ 0.03 0.04 1.3 Subsequent to September 30, 2020 through the filing date of this report, we purchased 74,659 1.8 |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Sep. 30, 2020 | |
Employee Retirement Plan | |
Employee Retirement Plan | 14. Employee Retirement Plan The Company sponsors a Simple IRA plan (the “Plan”), which covers all of the Company’s corporate employees. The Plan allows corporate employees to contribute up to the maximum amount allowed by law, with the Company making a matching contribution of up to 3 171,000 164,000 160,000 |
Insurance Recoveries
Insurance Recoveries | 12 Months Ended |
Sep. 30, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Insurance Recoveries | 15. Insurance Recoveries One of our clubs in Washington Park, Illinois was temporarily closed due to a fire during the third quarter of 2019, and another club in Fort Worth, Texas sustained weather-related damage toward the end of fiscal 2018. During the fourth quarter of 2020, one club in Sulphur, Louisiana incurred damage from a hurricane. We wrote off the net carrying value of the assets destroyed in the said events and recorded corresponding recovery of losses or gains in as much as the insurers have paid us or where contingencies relating to the insurance claims have been resolved. In relation to these casualty events, we recorded the following in our consolidated financial statements (in thousands): Schedule of Business Insurance Recoveries For the Year Ended September 30, Included in 2020 2019 2018 Consolidated balance sheets (period end) Insurance receivable Account receivable, net $ 191 $ 1,197 $ - Consolidated statements of operations – loss (gain) Business interruption Other charges, net $ (176 ) $ (484 ) $ - Property Other charges, net $ 596 $ (284 ) $ (20 ) Consolidated statements of cash flows Proceeds from business interruption insurance claims Operating activity $ 384 $ 100 $ - Proceeds from property insurance claims Investing activity $ 945 $ 100 $ 20 The net property insurance gain/loss amount in fiscal 2020, 2019, and 2018 was net of assets written off and expenses amounting to $ 728,000, $ 629,000 0 , respectively. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 16. Acquisitions and Dispositions 2018 Acquisitions At September 30, 2017, the Company held a $ 2.0 million note receivable related to the Drink Robust, Inc. (“Drink Robust”) disposition that occurred in September 2016. The note required interest-only monthly payments at a per annum rate of 4 500,000 and entered into negotiations for settlement of the note in April 2018. On April 26, 2018, the Company forgave the $ 500,000 guaranteed portion of the note for 750,000 shares of common stock of the manufacturing company. Additionally, as part of the settlement, the Company acquired 78.5% of the remaining 80% ownership interest in Drink Robust, bringing its ownership interest to 98.5% with the payment of an outstanding liability to the Drink Robust distributor 250,000 . As a result of the payment, Drink Robust also obtained a three-year exclusive right of distribution for the Robust Energy Drinks in the United States. The Company estimated the fair value of the shares of the manufacturing company and the interest acquired in Drink Robust. The estimated fair value totals $ 450,000 , which is net of the consideration of $ 250,000 owed to the Drink Robust distributor. As a result of the transaction, the Company impaired $ 1.55 million of the note receivable during the quarter ended March 31, 2018, with a remaining balance of $ 450,000 recorded within long-term assets at June 30, 2018. The Company accounted for the acquisition in the third quarter of 2018, when the transaction was executed and has finalized its estimate of the fair value of the shares acquired in the transaction, as well as its accounting for such ownership. The Company then acquired the remaining 1.5 % interest in Drink Robust from an individual investor to complete its 100 % ownership. On May 25, 2018, the Company acquired a club in Kappa, Illinois for $ 1.5 1.0 8 825,000 180,000 495 442,000 On September 6, 2018, a subsidiary acquired the remaining 49 1,550,000 759,000 2018 Disposition On December 11, 2017, the Company sold one of the properties held for sale for $ 675,000 481,000 2.0 7.2 2.5 2019 Acquisitions On November 1, 2018, the Company acquired the stock of a club in Chicago for $ 10.5 million with $ 6.0 million cash paid at closing and the $ 4.5 million in a 6-year seller-financed note with interest at 7 %. The Company paid approximately $ 37,000 in acquisition-related costs for this transaction, which is included in selling, general and administrative expenses in our consolidated statement of operations. In fiscal 2019, the club generated revenue of approximately $ 5.0 million since acquisition date. In relation to this acquisition, on September 25, 2018, the Company borrowed $ 5.0 million through a credit facility with a bank lender. The loan has a 7 % fixed interest rate with a maturity date in May 2019 . The loan was fully paid as of June 30, 2019. Goodwill and SOB license for the Chicago acquisition are not amortized but are tested at least annually for impairment. Goodwill recognized for this transaction is not deductible for tax purposes. Noncompete is amortized on a straight-line basis over five years from acquisition date. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 16. Acquisitions and Dispositions - continued The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Schedule of Allocation of Fair Values Assigned to Assets at Acquisition Land and building $ 4,325 Inventory 57 Furniture and equipment 50 Noncompete 100 SOB license 5,252 Goodwill 2,003 Deferred tax liability (1,287 ) Net assets $ 10,500 On November 5, 2018, the Company acquired the assets of a club in Pittsburgh for $ 15.0 7.5 7 2.0 8 5.5 134,000 4.6 Noncompete is amortized on a straight-line basis over five years from acquisition date. The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Schedule of Allocation of Fair Values Assigned to Assets at Acquisition Land and building $ 5,000 Inventory 23 Furniture and equipment 200 Noncompete 100 Goodwill 9,677 Net assets $ 15,000 2019 Dispositions In October 2018, the Company sold its nightclub in Philadelphia for a total sales price of $ 1.0 375,000 625,000 9 250,000 5,078 36,000 ten years 48,000 lessee has option to purchase the property for $ 6.0 879,000 879,085 The note, as modified, still bears interest at 9 11,905 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 16. Acquisitions and Dispositions - continued In November 2018, the Company sold two assets held for sale in Houston and San Antonio, Texas for a combined sales price of $ 868,000 273,000 945,000 On January 24, 2019, the Company sold a held-for-sale property in Dallas, Texas for a total sales price of $ 1.4 163,000 87,000 1.15 8 three-year 9,619 35 383,000 On March 21, 2019, the Company sold a held-for-sale property adjacent to our Bombshells 249 location for a total sales price of $ 1.4 628,000 980,000 In April 2019, the Company sold another held-for-sale property adjacent to our Bombshells I-10 location for a total sales price of $ 1.1 331,000 942,000 In June 2019, the Company sold a property located in Lubbock, Texas for $ 350,000 376,000 331,000 In June 2019, the Company sold an aircraft for $ 690,000 9,000 666,000 On July 23, 2019, the Company sold an aircraft for a total sales price of $ 382,000 16,000 217,000 On September 30, 2019, the Company sold its Bombshells Webster location for a total sales price of $ 85,000 156,000 2020 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 million. The agreements terminated prior to closing. We provided the sellers notice of the termination in April 2020. 2020 Dispositions On April 1, 2020, the Company sold a corporate housing property to an employee for $ 375,000 in cash with an approximate gain of $ 20,000 . On May 22, 2020, the Company sold land adjacent to one of our Bombshells locations in Houston for $ 1.5 583,000 1.4 On August 6, 2020, the Company sold another corporate housing property for $ 176,000 26,000 160,500 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 17. Quarterly Results of Operations (Unaudited) The following tables summarize unaudited quarterly data for fiscal 2020, 2019, and 2018 (in thousands, except per share data): Schedule of Quarterly Financial Information For the Three Months Ended December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Revenues (1) $ 48,394 $ 40,426 $ 14,721 $ 28,786 Income (loss) from operations (1) $ 9,686 $ (2,475 ) $ (4,657 ) $ 192 Net income (loss) attributable to RCIHH stockholders (1) $ 5,634 $ (3,452 ) $ (5,474 ) $ (2,793 ) Earnings (loss) per share (1) Basic and diluted $ 0.60 $ (0.37 ) $ (0.60 ) $ (0.31 ) Weighted average number of common shares outstanding Basic and diluted 9,322 9,225 9,125 9,124 For the Three Months Ended December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Revenues $ 44,023 $ 44,826 $ 47,027 $ 45,183 Income from operations (2) $ 11,132 $ 11,166 $ 9,974 $ 2,429 Net income attributable to RCIHH stockholders (2) $ 7,463 $ 6,735 $ 5,638 $ 458 Earnings per share (2) Basic and diluted $ 0.77 $ 0.70 $ 0.59 $ 0.05 Weighted average number of common shares outstanding Basic and diluted 9,713 9,679 9,620 9,616 For the Three Months Ended December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 Revenues $ 41,212 $ 41,226 $ 42,634 $ 40,676 Income from operations (3) $ 9,140 $ 8,231 $ 9,492 $ 699 Net income (loss) attributable to RCIHH stockholders (3) $ 14,311 $ 4,685 $ 5,389 $ (3,506 ) Earnings (loss) per share (3) Basic and diluted $ 1.47 $ 0.48 $ 0.55 $ (0.36 ) Weighted average number of common shares outstanding Basic and diluted 9,719 9,719 9,719 9,719 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements (1) Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $ 10.6 8.2 982,000 1.4 1.3 22.0% (28.9)% (20.5)% 36.3% (2) Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 6.0 2.9 1.2 1.1 0.3 0.4 0.8 0.1 0.9 8.4 22.3 24.1 (371.7)% (3) Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 1.6 5.6 1.6 4.0 8.8 9.7 38,000 827,000 (134.3)% 24.2 25.3 103.8 Our nightclub operations are normally affected by seasonal factors. Historically, we have experienced reduced revenues from April through September (our fiscal third and fourth quarters) with the strongest operating results occurring during October through March (our fiscal first and second quarters), but in fiscal 2020, due to the COVID-19 pandemic, revenues during the second through the fourth quarter were significantly reduced. Our revenues in certain markets are also affected by sporting events that cause unusual changes in sales from year to year. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Impairment of Assets
Impairment of Assets | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Assets | 18. Impairment of Assets During the year ended September 30, 2018, we recorded aggregate impairment charges of $ 5.6 1.6 834,000 3.1 During the year ended September 30, 2019, we recorded aggregate impairment charges of $ 6.0 1.6 4.2 178,000 During the year ended September 30, 2020, we recorded aggregate impairment charges of $ 10.6 million comprised of $ 7.9 million for goodwill of seven club reporting units, $ 2.3 million for SOB licenses of two clubs, $ 406,000 for long-lived assets of one club and one Bombshells unit ($ 302,000 for property and equipment and $ 104,000 for operating lease right-of-use assets). The impairment charges for fiscal 2020 were mainly due to lower cash flow projections and uncertainty risk caused by the pandemic. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 19. Segment Information The Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such 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. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 19. Segment Information - continued Below is the financial information related to the Company’s reportable segments (in thousands): Schedule of Segment Reporting Information 2020 2019 2018 Revenues (from external customers) Nightclubs $ 88,373 $ 148,606 $ 140,060 Bombshells 43,215 30,828 24,094 Other 739 1,625 1,594 $ 132,327 $ 181,059 $ 165,748 Income (loss) from operations Nightclubs $ 13,118 $ 50,724 $ 43,624 Bombshells 9,245 2,307 2,040 Other (684 ) (309 ) (252 ) General corporate (18,933 ) (18,021 ) (17,850 ) $ 2,746 $ 34,701 $ 27,562 Capital expenditures Nightclubs $ 3,477 $ 6,645 $ 2,052 Bombshells 2,114 10,457 22,522 Other - 27 33 General corporate 145 3,579 656 $ 5,736 $ 20,708 $ 25,263 Depreciation and amortization Nightclubs $ 5,799 $ 6,401 $ 5,404 Bombshells 1,785 1,374 1,265 Other 415 416 179 General corporate 837 881 874 $ 8,836 $ 9,072 $ 7,722 September 30, 2020 September 30, 2019 September 30, 2018 Total assets (1) Nightclubs (1) $ 277,960 $ 274,071 $ 252,335 Bombshells (1) 48,991 44,144 39,560 Other (1) 1,269 1,773 1,978 General corporate (1) 32,713 34,768 35,859 (1) $ 360,933 $ 354,756 $ 329,732 (1) See Note 4 for a discussion of revision of prior year immaterial misstatement. Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs segment amounting to $ 11.1 10.0 9.0 70 140 26 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. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 20. Noncontrolling Interests Noncontrolling interests represent the portion of equity in a consolidated entity held by owners other than the consolidating parent. Noncontrolling interests are reported in the consolidated balance sheets within equity. Revenue, expenses and net income attributable to both the Company and the noncontrolling interests are reported in the consolidated statements of operations. Until September 2018, our consolidated financial statements included noncontrolling interests related to the Company’s ownership of 51 Our consolidated financial statements include noncontrolling interests related principally to the Company’s ownership of 51 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 21. 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 September 30, 2020 and 2019 was $ 83.8 86.8 Included in the $ 2.35 million borrowing on November 1, 2018 (see Note 10) were 500,000 100,000 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 approximately $ 59,000 134,000 321,000 0 6,588 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 approximately $ 19,000 452,000 120,000 62,000 47,000 7,000 5,700 0 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | 22. Leases ASC 840 (Related to Fiscal 2019 and 2018) 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. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements Included in lease expense in our consolidated statements of operations (see Note 6) 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 $ 19,500 78,000 55,250 December 31, 2019 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 consolidated statements of operations. Under ASC 840, we recorded lease expense amounting to $ 3.9 3.8 ASC 842 (Related to Fiscal 2020) 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 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 5. Future maturities of ASC 842 lease liabilities as of September 30, 2020 are as follows (in thousands): Schedule of Future Maturities of Lease Liabilities Principal Payments Interest Total Payments October 2020 - September 2021 $ 1,628 $ 1,593 $ 3,221 October 2021 - September 2022 1,742 1,491 3,233 October 2022 - September 2023 1,678 1,387 3,065 October 2023 - September 2024 1,775 1,283 3,058 October 2024 - September 2025 1,953 1,171 3,124 Thereafter 18,291 5,421 23,712 $ 27,067 $ 12,346 $ 39,413 Total lease expense, under ASC 842, was included in selling, general and administrative expenses in our consolidated statement of operations, except for sublease income which was included in other revenue, for the year ended September 30, 2020 as follows (in thousands): Schedule of Lease Expense Year Ended September 30, 2020 Operating lease expense – fixed payments $ 3,244 Variable lease expense 381 Short-term equipment and other lease expense (includes $ 315 372 1,122 Sublease income (9 ) Total lease expense, net $ 4,738 Other information: Operating cash outflows from operating leases $ 4,562 Weighted average remaining lease term 13 Weighted average discount rate 6.1 % In relation to certain rent concessions that we received from certain of our lessors in view of the COVID-19 pandemic, we accounted for those rent concessions as deferral of payments as if the lease is unchanged. Any reduction in total lease expense during the period caused by either an extension of the lease term or a forgiveness of certain lease payments is accounted for as variable lease payment adjustments. RCI HOSPITALITY HOLDINGS, INC. |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule of Valuation and Qualifying Accounts (Amounts in Thousands) Schedule of Valuation and Qualifying Accounts Balance at beginning of year Charged to costs and expenses (1) Deductions (2) Balance at end of year Allowance for doubtful accounts receivable Fiscal 2018 $ - $ 106 $ (106 ) $ - Fiscal 2019 $ - $ 241 $ (140 ) $ 101 Fiscal 2020 $ 101 $ 347 $ (187 ) $ 261 Allowance for doubtful notes receivable Fiscal 2018 $ - $ - $ - $ - Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 602 $ (420 ) $ 182 Deferred tax asset valuation allowance (3) Fiscal 2018 $ - $ - $ - $ - Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 1,273 $ - $ 1,273 (1) Charged to bad debts expense (under other selling, general and administrative expenses) in the consolidated statements of operations. (2) Written off against gross receivable and allowance. (3) Included in deferred tax liability, net in the consolidated balance sheets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accounts are maintained and the consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which a controlling interest is owned. Intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year Our fiscal year ends on September 30. References to years 2020, 2019, and 2018 are for fiscal years ended September 30, 2020, 2019, and 2018, respectively. Our fiscal quarters chronologically end on December 31, March 31, June 30 and September 30. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts in the consolidated financial statements and accompanying notes. Estimates and assumptions are based on historical experience, forecasted future events, and various other assumptions that we believe to be reasonable under the circumstances. Estimates and assumptions may vary under different circumstances and conditions. We evaluate our estimates and assumptions on an ongoing basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued |
Accounts and Notes Receivable | Accounts and Notes Receivable Accounts receivable for club and restaurant operations are primarily comprised of credit card charges, which are generally converted to cash in two to five days after a purchase is made. The media division’s accounts receivable are primarily comprised of receivables for advertising sales and Expo registration. Accounts receivable also include employee advances, construction advances, and other miscellaneous receivables. Long-term notes receivable, which have original maturity of more than one year, include consideration from the sale of certain investment interest entities and real estate. The Company recognizes interest income on notes receivable based on the terms of the agreement and based upon management’s evaluation that the notes receivable and interest income will be collected. The Company recognizes allowances for doubtful accounts or notes when, based on management judgment, circumstances indicate that accounts or notes receivable will not be collected. Allowance for doubtful accounts balance related to accounts receivable was $ 261 101 182 0 |
Inventories | Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at net realizable value. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Provisions for depreciation and amortization are made using straight-line rates over the estimated useful lives of the related assets, and the shorter of useful lives or terms of the applicable leases for leasehold improvements. Buildings have estimated useful lives ranging from 29 40 5 7 156 597 319 |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized but reviewed on an annual basis for impairment. Definite-lived intangible assets are amortized on a straight-line basis over their estimated lives. The costs of transferable licenses purchased through open markets are capitalized as indefinite-lived intangible assets. The costs of obtaining non-transferable licenses that are directly issued by local government agencies are expensed as incurred. Annual license renewal fees are expensed over their renewal term. Goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued For our goodwill impairment review, we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. The fair value is determined using market-related valuation models, including earnings multiples, discounted cash flows, and comparable asset market values. We recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit, not to exceed the amount of goodwill allocated to the reporting unit, based on the results of our Step 1 analysis. For the year ended September 30, 2020, we identified seven reporting units that were impaired and recognized a goodwill impairment loss totaling $ 7.9 1.6 834 For indefinite-lived intangibles, specifically SOB licenses, we determine fair value by estimating the multiperiod excess earnings of the asset. For indefinite-lived tradename, we determine fair value by using the relief from royalty method. The fair value is then compared to the carrying value and an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the asset. We recorded impairment charges for SOB licenses amounting to $ 2.3 178 3.1 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, intangible assets subject to amortization, and right-of-use assets on operating leases for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. These events or changes in circumstances include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for the overall business, and significant negative industry or economic trends. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group. If the asset group is not recoverable, the impairment loss is calculated as the excess of the carrying value over the fair value. We define our asset group as an operating club or restaurant location, which is also our reporting unit or the lowest level for which cash flows can be identified. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. For assets held for sale, we measure fair value using an estimation based on quoted prices for similar items in active or inactive markets (level 2) developed using observable data. The assets and liabilities of a disposal group classified as held for sale are presented separately in the appropriate asset and liability sections of the balance sheet. During fiscal 2020, the Company impaired one club and one Bombshells unit for a total of $ 302 ,000; during fiscal 2019, the Company impaired two clubs for a total of $ 4.2 million; and during fiscal 2018, the Company impaired one club and one Bombshells for a total of $ 1.6 million. The Company also impaired one club in fiscal of 2020 for operating lease right-of-use assets amounting to $ 104 ,000. See Notes 7 and 18. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of notes receivable and short and long-term debt also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is the total of net income or loss and all other changes in net assets arising from non-owner sources, which are referred to as items of other comprehensive income (loss). An analysis of changes in components of accumulated other comprehensive income is presented in the consolidated statements of comprehensive income (loss). |
Revenue Recognition | Revenue Recognition 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 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 Refer to Notes 5 and 22 for additional disclosures on revenues and leases, respectively. |
Advertising and Marketing | Advertising and Marketing Advertising and marketing expenses are primarily comprised of costs related to public advertisements and giveaways, which are used for promotional purposes. Advertising and marketing expenses are expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. See Note 6. |
Income Taxes | Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax and income taxes imposed in the state and local jurisdictions where we operate our businesses. Deferred income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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 effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued U.S. GAAP creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. |
Investments | Investments Investments in companies in which the company has a 20% to 50% interest are accounted for using the equity method, which are carried at cost and adjusted for the Company’s proportionate share of their undistributed earnings or losses. Investments in companies in which the Company owns less than a 20% interest, or where the Company does not exercise significant influence, are accounted for at cost and reviewed for any impairment. Cost and equity method investments are included in other assets in the Company’s consolidated balance sheets. In relation to the reacquisition of Drink Robust in 2018, which we partially sold in fiscal 2016, we have consolidated the operations of Drink Robust and eliminated the investment in consolidation. See Note 16. |
Paycheck Protection Program | Paycheck Protection Program The Company’s policy is to account for the Paycheck Protection Program (“PPP”) loan as debt (see Note 10). The Company will continue to record the loan as debt until either (1) the loans are partially or entirely forgiven and the Company has been legally released from the obligation, at which point the amount forgiven will be recorded as income, or (2) the Company pays off the loans. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect the potential dilution of securities that could share in the earnings or losses of the Company. Potential common stock shares consist of shares that may arise from outstanding dilutive common restricted stock, stock options and warrants (the number of which is computed using the treasury stock method) and from outstanding convertible debentures (the number of which is computed using the if-converted method). Diluted earnings (loss) per share considers the potential dilution that could occur if the Company’s outstanding common restricted stock, stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings or losses (as adjusted for interest expense, that would no longer be incurred if the debentures were converted). RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued During the years ended September 30, 2020, 2019, and 2018, the Company did not have any outstanding dilutive securities that are considered adjustment items to reconcile the numerator and the denominator in the calculation of basic and diluted earnings (loss) per share. |
Stock Options | Stock Options The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and recognized as expense over their requisite service period. The Company estimates grant date fair value using the Black-Scholes option-pricing model. The critical estimates are volatility, expected life and risk-free rate. At September 30, 2020 and 2019, the Company has no stock options outstanding, and as of September 30, 2020, the Company’s 2010 Stock Option Plan contractually expired. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued |
Legal and Other Contingencies | Legal and Other Contingencies The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated. In the opinion of management, there was not at least a reasonable possibility that we may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. The Company recognizes legal fees and expenses, including those related to legal contingencies, as incurred. Generally, the Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved. The Company maintains insurance that covers claims arising from risks associated with the Company’s business including claims for workers’ compensation, general liability, property, auto, and business interruption coverage. The Company carries substantial insurance to cover such risks with large deductibles and/or self-insured retention. These policies have been structured to limit our per-occurrence exposure. The Company believes, and the Company’s experience has been, that such insurance policies have been sufficient to cover such risks. |
Fair Value Accounting | Fair Value Accounting The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its marketable securities as available-for-sale, which are reported at fair value. Unrealized holding gains and losses, net of the related income tax effect, if any, on available-for-sale securities were excluded from income and were reported as accumulated other comprehensive income in equity until our adoption of ASU 2016-01 as of October 1, 2018. Realized gains and losses (and unrealized gains and losses upon the adoption of ASU 2016-01) from securities classified as available-for-sale are included in comprehensive income (loss). The Company measures the fair value of its marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. Available-for-sale securities, which are included in other assets in the consolidated balance sheets, had a balance of $ 84 ,000 and $ 148 ,000 as of September 30, 2020 and 2019. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued In accordance with U.S. GAAP, the Company reviews its marketable securities to determine whether a decline in fair value of a security below the cost basis is other than temporary. Should the decline be considered other than temporary, the Company writes down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses or other-than-temporary impairments in our marketable securities portfolio were recognized during the years ended September 30, 2020, 2019, and 2018. |
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis | Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to tangible property and equipment, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. For these assets, the Company does not periodically adjust carrying value to fair value except in the event of impairment. If it is determined that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is included in other charges, net in the consolidated statements of operations. Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2020 (Level 1) (Level 2) (Level 3) Property and equipment $ 6,042 $ - $ - $ 6,042 Indefinite-lived intangibles 656 - - 656 Goodwill 5,883 - - 5,883 Operating lease right-of-use assets * 27,310 - - 27,310 Operating lease liabilities * (28,551 ) - - (28,551 ) Other assets (equity securities) 84 84 - - * Measured at October 1, 2019 upon the adoption of ASC 842. Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2019 (Level 1) (Level 2) (Level 3) Property and equipment $ 10,926 $ - $ - $ 10,926 Indefinite-lived intangibles 5,323 - - 5,323 Definite-lived intangibles 200 - - 200 Goodwill 11,627 - - 11,627 Other assets (equity securities) 148 148 - - RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued Unrealized Gain (Loss/Impairments) Recognized Years Ended September 30, Description 2020 2019 2018 Goodwill $ (7,944 ) $ (1,638 ) $ (834 ) Property and equipment, net (302 ) (4,224 ) (1,615 ) Indefinite-lived intangibles (2,265 ) (178 ) (3,121 ) Operating lease right-of-use assets (104 ) - - Other assets (equity securities) (64 ) (612 ) 305 |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards 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 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 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 Consolidated Financial Statements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2020 (Level 1) (Level 2) (Level 3) Property and equipment $ 6,042 $ - $ - $ 6,042 Indefinite-lived intangibles 656 - - 656 Goodwill 5,883 - - 5,883 Operating lease right-of-use assets * 27,310 - - 27,310 Operating lease liabilities * (28,551 ) - - (28,551 ) Other assets (equity securities) 84 84 - - * Measured at October 1, 2019 upon the adoption of ASC 842. Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2019 (Level 1) (Level 2) (Level 3) Property and equipment $ 10,926 $ - $ - $ 10,926 Indefinite-lived intangibles 5,323 - - 5,323 Definite-lived intangibles 200 - - 200 Goodwill 11,627 - - 11,627 Other assets (equity securities) 148 148 - - RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 2. Summary of Significant Accounting Policies - continued Unrealized Gain (Loss/Impairments) Recognized Years Ended September 30, Description 2020 2019 2018 Goodwill $ (7,944 ) $ (1,638 ) $ (834 ) Property and equipment, net (302 ) (4,224 ) (1,615 ) Indefinite-lived intangibles (2,265 ) (178 ) (3,121 ) Operating lease right-of-use assets (104 ) - - Other assets (equity securities) (64 ) (612 ) 305 |
Revision of Prior Year Immate_2
Revision of Prior Year Immaterial Misstatement (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Impact of Revisions in Financial Statements | The tables below present the impact of the revision in the Company’s consolidated financial statements (in thousands, except per share amounts): Schedule of Impact of Revisions in Financial Statements Fiscal 2019 First Quarter Full Year Consolidated Statement of Income/Comprehensive Income: As previously reported — Income tax expense $ 1,811 $ 4,863 Net income $ 6,404 $ 19,326 Net income attributable to RCIHH common stockholders $ 6,344 $ 19,175 Earnings per share - basic and diluted $ 0.65 $ 1.99 Comprehensive income $ 6,404 $ 19,106 Comprehensive income attributable to RCIHH common stockholders $ 6,344 $ 18,955 Adjustments — Income tax expense $ (1,119 ) $ (1,119 ) Net income $ 1,119 $ 1,119 Net income attributable to RCIHH common stockholders $ 1,119 $ 1,119 Earnings per share - basic and diluted $ 0.12 $ 0.12 Comprehensive income $ 1,119 $ 1,119 Comprehensive income attributable to RCIHH common stockholders $ 1,119 $ 1,119 As revised — Income tax expense $ 692 $ 3,744 Net income $ 7,523 $ 20,445 Net income attributable to RCIHH common stockholders $ 7,463 $ 20,294 Earnings per share - basic and diluted $ 0.77 $ 2.10 Comprehensive income $ 7,523 $ 20,225 Comprehensive income attributable to RCIHH common stockholders $ 7,463 $ 20,074 December 31, March 31, June 30, September 30, December 31, March 31, June 30, Consolidated Balance Sheet: As previously reported — Accounts receivable, net $ 5,583 $ 5,579 $ 5,001 $ 6,289 $ 3,131 $ 3,559 $ 5,529 Total current assets $ 25,067 $ 21,859 $ 22,597 $ 34,771 $ 30,899 $ 26,767 $ 28,350 Total assets $ 349,522 $ 350,873 $ 350,878 $ 353,637 $ 376,173 $ 361,896 $ 360,374 Retained earnings $ 95,179 $ 101,623 $ 106,976 $ 107,049 $ 112,404 $ 108,584 $ 102,837 Total RCIHH stockholders’ equity $ 159,133 $ 163,971 $ 168,921 $ 168,457 $ 167,371 $ 161,504 $ 155,757 Total equity $ 159,090 $ 163,936 $ 168,906 $ 168,301 $ 167,205 $ 161,276 $ 155,435 Adjustments — Accounts receivable, net $ 1,119 Total current assets $ 1,119 Total assets $ 1,119 Retained earnings $ 1,119 Total RCIHH stockholders’ equity $ 1,119 Total equity $ 1,119 As revised — Accounts receivable, net $ 6,702 $ 6,698 $ 6,120 $ 7,408 $ 4,250 $ 4,678 $ 6,648 Total current assets $ 26,186 $ 22,978 $ 23,716 $ 35,890 $ 32,018 $ 27,886 $ 29,469 Total assets $ 350,641 $ 351,992 $ 351,997 $ 354,756 $ 377,292 $ 363,015 $ 361,493 Retained earnings $ 96,298 $ 102,742 $ 108,095 $ 108,168 $ 113,523 $ 109,703 $ 103,956 Total RCIHH stockholders’ equity $ 160,252 $ 165,090 $ 170,040 $ 169,576 $ 168,490 $ 162,623 $ 156,876 Total equity $ 160,209 $ 165,055 $ 170,025 $ 169,420 $ 168,324 $ 162,395 $ 156,554 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Sep. 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 19), are shown below (in thousands). Schedule of Disaggregation of Segment Revenues Fiscal 2020 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 31,950 $ 27,130 $ - $ 59,080 Sales of food and merchandise 8,561 15,899 - 24,460 Service revenues 41,004 158 - 41,162 Other revenues 6,858 28 739 7,625 $ 88,373 $ 43,215 $ 739 $ 132,327 Recognized at a point in time $ 87,049 $ 43,215 $ 725 $ 130,989 Recognized over time 1,324 - 14 1,338 $ 88,373 $ 43,215 $ 739 $ 132,327 Fiscal 2019 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 57,277 $ 17,863 $ - $ 75,140 Sales of food and merchandise 13,051 12,779 - 25,830 Service revenues 67,893 162 - 68,055 Other revenues 10,385 24 1,625 12,034 $ 148,606 $ 30,828 $ 1,625 $ 181,059 Recognized at a point in time $ 146,938 $ 30,828 $ 1,572 $ 179,338 Recognized over time 1,668 - 53 1,721 $ 148,606 $ 30,828 $ 1,625 $ 181,059 Fiscal 2018 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 54,800 $ 14,320 $ - $ 69,120 Sales of food and merchandise 12,732 9,701 - 22,433 Service revenues 64,054 50 - 64,104 Other revenues 8,474 23 1,594 10,091 $ 140,060 $ 24,094 $ 1,594 $ 165,748 Recognized at a point in time $ 138,847 $ 24,094 $ 1,516 $ 164,457 Recognized over time 1,213 - 78 1,291 $ 140,060 $ 24,094 $ 1,594 $ 165,748 * Lease revenue (included in Other Revenues) is covered by ASC 842 in the current year (and ASC 840 in the prior years. All other revenues are covered by ASC Topic 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 consolidated balance sheet. A reconciliation of contract liabilities with customers, included in accrued liabilities in our consolidated balance sheets, is presented below: Schedule of Reconciliation of Contract Liabilities with Customers Balance at September 30, 2018 Consideration Received Recognized in Revenue Balance at September 30, 2019 Consideration Received Recognized in Revenue Balance at September 30, 2020 Ad revenue $ 126 $ 602 $ (652 ) $ 76 $ 538 $ (522 ) $ 92 Expo revenue - 602 (602 ) - 211 - 211 Other 8 52 (53 ) 7 40 (14 ) 33 $ 134 $ 1,256 $ (1,307 ) $ 83 $ 789 $ (536 ) $ 336 |
Selected Account Information (T
Selected Account Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Selected Account Information | |
Schedule of Accounts Receivable | The components of accounts receivable, net are as follows (in thousands): Schedule of Accounts Receivable 2020 2019 September 30, 2020 2019 (As Revised) Credit card receivables $ 880 $ 1,396 Income tax refundable 4,325 2,900 Insurance receivable 191 1,197 ATM-in-transit 160 780 Other (net of allowance for doubtful accounts of $ 261 101 1,211 1,135 Accounts receivable, net $ 6,767 $ 7,408 |
Schedule of Accrued Liabilities | The components of accrued liabilities are as follows (in thousands): Schedule of Accrued Liabilities 2020 2019 September 30, 2020 2019 Insurance $ 4,405 $ 4,937 Payroll and related costs 2,419 2,892 Property taxes 2,003 1,675 Sales and liquor taxes 2,613 3,086 Interest 1,390 508 Patron tax 309 595 Lawsuit settlement 100 115 Unearned revenues 336 83 Other 998 753 Accrued liabilities $ 14,573 $ 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 2018 Years Ended September 30, 2020 2019 2018 Taxes and permits $ 8,071 $ 10,779 $ 9,545 Advertising and marketing 5,367 8,392 7,536 Supplies and services 4,711 5,911 5,344 Insurance 5,777 5,429 5,473 Lease 4,060 3,896 3,720 Legal 4,725 5,180 3,586 Utilities 2,945 3,165 2,969 Charge cards fees 2,382 3,803 3,244 Security 2,582 2,973 2,617 Accounting and professional fees 3,463 2,815 2,944 Repairs and maintenance 2,289 2,980 2,184 Other 5,320 4,573 4,662 Selling, general and administrative expenses $ 51,692 $ 59,896 $ 53,824 |
Schedule of Components of Other Charges, Net | The components of other charges, net are as follows (in thousands): Schedule of Components of Other Charges, Net 2020 2019 2018 Years Ended September 30, 2020 2019 2018 Impairment of assets $ 10,615 $ 6,040 $ 5,570 Settlement of lawsuits 174 225 1,669 Loss (gain) on sale of businesses and assets (661 ) (2,877 ) 1,965 Loss (gain) on insurance 420 (768 ) (20 ) Other charges $ 10,548 $ 2,620 $ 9,184 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): Schedule of Property, Plant and Equipment September 30, 2020 2019 Buildings and land $ 163,938 $ 159,969 Equipment 37,000 37,031 Leasehold improvements 29,776 32,868 Furniture 9,614 9,393 Total property and equipment 240,328 239,261 Less accumulated depreciation (58,945 ) (55,305 ) Property and equipment, net $ 181,383 $ 183,956 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | Goodwill and other intangible assets consisted of the following (in thousands): Schedule of Goodwill and Other Intangible Assets September 30, 2020 2019 Indefinite useful lives: Goodwill $ 45,686 $ 53,630 Licenses 70,332 72,597 Tradename 2,215 2,215 118,233 128,442 Amortization Period Definite useful lives: Discounted leases 18 6 93 101 Non-compete agreements 5 362 565 Software 5 23 315 Distribution agreement 3 52 158 530 1,139 Total goodwill and other intangible assets $ 118,763 $ 129,581 |
Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill | Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill 2020 2019 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 1,139 $ 74,812 $ 53,630 $ 1,794 $ 69,738 $ 43,591 Acquisitions - - - 243 5,252 11,677 Impairment - (2,265 ) (7,944 ) - (178 ) (1,638 ) Amortization (609 ) - - (898 ) - - Ending balance $ 530 $ 72,547 $ 45,686 $ 1,139 $ 74,812 $ 53,630 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): Schedule of Long-term Debt September 30, 2020 2019 Notes payable at 5.5 January 2023 (d)(1) $ 886 $ 981 Non-interest-bearing debts to State of Texas, mature March 2022 and May 2022 9.6 (d)(2) 2,177 3,379 Note payable at 5.75% , matures December 2027, as amended *(a)(6ii)(7) 9,715 9,877 Note payable at 5.95 %, matures December 2027 *(a)(6iii)(7) 5,787 6,776 Note payable at 12 February 2030 (d)(3)(25) 5,031 5,518 Notes payable at 12 %, mature November 2021 , as amended (d)(4)(26) 1,940 2,040 Note payable at 8 %, matures October 2022 , as amended (b)(5)(23) 3,025 3,025 Note payable at 8 May 2029 (b)(5) 12,599 13,569 Note payable at 5.75 %, matures December 2027 *(a)(6i)(7)(8)(9) 49,830 51,167 Note payable at 5.99 %, matures September 2033 (c)(10) 6,395 6,555 Note payable at 5 August 2029 *(a)(12) 2,165 3,709 Note payable at prime plus 0.5% 5.5% September 2035 , as amended *(a)(13) 2,099 2,099 Note payable initially at prime plus 0.5 5.5 September 2030 *(a)(13) 2,861 2,619 Note payable at 8 May 2021 (a)(14) 582 771 Note payable at 5.95 %, matures August 2039 *(a)(11) 6,979 6,858 Note payable at 12 February 2030 (d)(15)(24) 3,875 4,000 Note payable at 9 September 2028 (a)(17) 1,167 1,263 Note payable at 5.95 %, matures September 2028 *(a)(16) 1,489 1,511 Note payable at 6 %, matures February 2040 *(a)(22) 4,066 3,608 Note payable at 5.49 March 2039 (c)(21) 2,125 2,156 Note payable at 7 November 2024 (b)(19) 3,319 3,982 Note payable at 7 February 2021 (b)(20) 2,000 2,000 Notes payable at 12 November 2021 (d)(18) 2,350 2,350 Note payable at 8 November 2028 (b)(20) 4,790 5,190 Paycheck Protection Program loans at 1 May 2022 (d)(27) 5,422 - Total debt 142,674 145,003 Less unamortized debt discount and issuance costs (1,239 ) (1,475 ) Less current portion (16,304 ) (15,754 ) Total long-term portion of debt, net $ 125,131 $ 127,774 * These commercial bank debts are guaranteed by the Company’s CEO. See Note 21. |
Schedule of Long-term Debt Instruments | Following is a summary of long-term debt at September 30 (in thousands): Schedule of Long-term Debt Instruments 2020 2019 (a) Secured by real estate $ 86,740 $ 90,258 (b) Secured by stock in subsidiary 25,733 27,766 (c) Secured by other assets 8,520 8,711 (d) Unsecured 21,681 18,269 $ 142,674 $ 145,003 |
Schedule of Maturities of Long-term Debt | Future maturities of debt obligations as of September 30, 2020 consist of the following (in thousands): Schedule of Maturities of Long-term Debt Regular Amortization Balloon Payments Total Payments 2021 $ 12,098 $ 4,405 $ 16,503 2022 11,032 2,350 13,382 2023 8,090 3,676 11,766 2024 8,642 - 8,642 2025 8,479 - 8,479 Thereafter 41,911 41,991 83,902 $ 90,252 $ 52,422 $ 142,674 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following (in thousands): Schedule of Income Tax Expense (Benefit) 2020 2019 2018 Years Ended September 30, 2020 2019 2018 (As Revised) Current Federal $ 215 $ 1,886 $ 2,438 State and local 560 1,037 1,219 Total current income tax expense (benefit) 775 2,923 3,657 Deferred Federal (1,248 ) 913 (8,096 ) State and local (20 ) (92 ) 1,321 Total deferred income tax expense (benefit) (1,268 ) 821 (6,775 ) Total income tax expense (benefit) $ (493 ) $ 3,744 $ (3,118 ) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) differs from the “expected” income tax expense computed by applying the U.S. federal statutory rate to earnings before income taxes for the years ended September 30 as a result of the following (in thousands): Schedule of Components of Income Tax Expense (Benefit) 2020 2019 2018 Years Ended September 30, 2020 2019 2018 Computed expected income tax expense (benefit) $ (1,429 ) $ 5,080 $ 4,371 State income taxes, net of federal benefit 253 672 804 Deferred taxes on subsidiaries acquired/sold - - 709 Permanent differences 395 45 85 Change in deferred tax liability rate - - (8,832 ) Change in valuation allowance 1,273 - - Tax credits (945 ) (900 ) (808 ) Other (40 ) (1,153 ) 553 Total income tax expense (benefit) $ (493 ) $ 3,744 $ (3,118 ) |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): Schedule of Deferred Tax Assets and Liabilities 2020 2019 September 30, 2020 2019 Deferred tax assets: Patron tax $ 349 $ 621 Capital loss carryforwards 1,263 420 Other 2,046 - Valuation allowance (1,273 ) - Net deferred tax assets 2,385 1,041 Deferred tax liabilities: Intangibles (14,106 ) (14,491 ) Property and equipment (8,669 ) (8,024 ) Other - (184 ) Deferred tax liabilities (22,775 ) (22,699 ) Net deferred tax liability $ (20,390 ) $ (21,658 ) |
Schedule of Uncertain Tax Positions | The following table shows the changes in the Company’s uncertain tax positions (in thousands): Schedule of Uncertain Tax Positions 2020 2019 2018 Years Ended September 30, 2020 2019 2018 Balance at beginning of year $ $ 165 $ 865 Additions for tax positions of prior years - - - Decrease related to settlements with taxing authorities - - (700 ) Reduction due to lapse from closed examination - (165 ) - Balance at end of year $ - $ - $ 165 |
Insurance Recoveries (Tables)
Insurance Recoveries (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Business Insurance Recoveries | In relation to these casualty events, we recorded the following in our consolidated financial statements (in thousands): Schedule of Business Insurance Recoveries For the Year Ended September 30, Included in 2020 2019 2018 Consolidated balance sheets (period end) Insurance receivable Account receivable, net $ 191 $ 1,197 $ - Consolidated statements of operations – loss (gain) Business interruption Other charges, net $ (176 ) $ (484 ) $ - Property Other charges, net $ 596 $ (284 ) $ (20 ) Consolidated statements of cash flows Proceeds from business interruption insurance claims Operating activity $ 384 $ 100 $ - Proceeds from property insurance claims Investing activity $ 945 $ 100 $ 20 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Chicago Club [Member] | |
Entity Listings [Line Items] | |
Schedule of Allocation of Fair Values Assigned to Assets at Acquisition | The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Schedule of Allocation of Fair Values Assigned to Assets at Acquisition Land and building $ 4,325 Inventory 57 Furniture and equipment 50 Noncompete 100 SOB license 5,252 Goodwill 2,003 Deferred tax liability (1,287 ) Net assets $ 10,500 |
Pittsburgh Club [Member] | |
Entity Listings [Line Items] | |
Schedule of Allocation of Fair Values Assigned to Assets at Acquisition | The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Schedule of Allocation of Fair Values Assigned to Assets at Acquisition Land and building $ 5,000 Inventory 23 Furniture and equipment 200 Noncompete 100 Goodwill 9,677 Net assets $ 15,000 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables summarize unaudited quarterly data for fiscal 2020, 2019, and 2018 (in thousands, except per share data): Schedule of Quarterly Financial Information For the Three Months Ended December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Revenues (1) $ 48,394 $ 40,426 $ 14,721 $ 28,786 Income (loss) from operations (1) $ 9,686 $ (2,475 ) $ (4,657 ) $ 192 Net income (loss) attributable to RCIHH stockholders (1) $ 5,634 $ (3,452 ) $ (5,474 ) $ (2,793 ) Earnings (loss) per share (1) Basic and diluted $ 0.60 $ (0.37 ) $ (0.60 ) $ (0.31 ) Weighted average number of common shares outstanding Basic and diluted 9,322 9,225 9,125 9,124 For the Three Months Ended December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Revenues $ 44,023 $ 44,826 $ 47,027 $ 45,183 Income from operations (2) $ 11,132 $ 11,166 $ 9,974 $ 2,429 Net income attributable to RCIHH stockholders (2) $ 7,463 $ 6,735 $ 5,638 $ 458 Earnings per share (2) Basic and diluted $ 0.77 $ 0.70 $ 0.59 $ 0.05 Weighted average number of common shares outstanding Basic and diluted 9,713 9,679 9,620 9,616 For the Three Months Ended December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 Revenues $ 41,212 $ 41,226 $ 42,634 $ 40,676 Income from operations (3) $ 9,140 $ 8,231 $ 9,492 $ 699 Net income (loss) attributable to RCIHH stockholders (3) $ 14,311 $ 4,685 $ 5,389 $ (3,506 ) Earnings (loss) per share (3) Basic and diluted $ 1.47 $ 0.48 $ 0.55 $ (0.36 ) Weighted average number of common shares outstanding Basic and diluted 9,719 9,719 9,719 9,719 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements (1) Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $ 10.6 8.2 982,000 1.4 1.3 22.0% (28.9)% (20.5)% 36.3% (2) Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 6.0 2.9 1.2 1.1 0.3 0.4 0.8 0.1 0.9 8.4 22.3 24.1 (371.7)% (3) Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 1.6 5.6 1.6 4.0 8.8 9.7 38,000 827,000 (134.3)% 24.2 25.3 103.8 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Below is the financial information related to the Company’s reportable segments (in thousands): Schedule of Segment Reporting Information 2020 2019 2018 Revenues (from external customers) Nightclubs $ 88,373 $ 148,606 $ 140,060 Bombshells 43,215 30,828 24,094 Other 739 1,625 1,594 $ 132,327 $ 181,059 $ 165,748 Income (loss) from operations Nightclubs $ 13,118 $ 50,724 $ 43,624 Bombshells 9,245 2,307 2,040 Other (684 ) (309 ) (252 ) General corporate (18,933 ) (18,021 ) (17,850 ) $ 2,746 $ 34,701 $ 27,562 Capital expenditures Nightclubs $ 3,477 $ 6,645 $ 2,052 Bombshells 2,114 10,457 22,522 Other - 27 33 General corporate 145 3,579 656 $ 5,736 $ 20,708 $ 25,263 Depreciation and amortization Nightclubs $ 5,799 $ 6,401 $ 5,404 Bombshells 1,785 1,374 1,265 Other 415 416 179 General corporate 837 881 874 $ 8,836 $ 9,072 $ 7,722 September 30, 2020 September 30, 2019 September 30, 2018 Total assets (1) Nightclubs (1) $ 277,960 $ 274,071 $ 252,335 Bombshells (1) 48,991 44,144 39,560 Other (1) 1,269 1,773 1,978 General corporate (1) 32,713 34,768 35,859 (1) $ 360,933 $ 354,756 $ 329,732 (1) See Note 4 for a discussion of revision of prior year immaterial misstatement. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases | |
Schedule of Future Maturities of Lease Liabilities | Future maturities of ASC 842 lease liabilities as of September 30, 2020 are as follows (in thousands): Schedule of Future Maturities of Lease Liabilities Principal Payments Interest Total Payments October 2020 - September 2021 $ 1,628 $ 1,593 $ 3,221 October 2021 - September 2022 1,742 1,491 3,233 October 2022 - September 2023 1,678 1,387 3,065 October 2023 - September 2024 1,775 1,283 3,058 October 2024 - September 2025 1,953 1,171 3,124 Thereafter 18,291 5,421 23,712 $ 27,067 $ 12,346 $ 39,413 |
Schedule of Lease Expense | Total lease expense, under ASC 842, was included in selling, general and administrative expenses in our consolidated statement of operations, except for sublease income which was included in other revenue, for the year ended September 30, 2020 as follows (in thousands): Schedule of Lease Expense Year Ended September 30, 2020 Operating lease expense – fixed payments $ 3,244 Variable lease expense 381 Short-term equipment and other lease expense (includes $ 315 372 1,122 Sublease income (9 ) Total lease expense, net $ 4,738 Other information: Operating cash outflows from operating leases $ 4,562 Weighted average remaining lease term 13 Weighted average discount rate 6.1 % |
Schedule of Valuation and Qua_2
Schedule of Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule of Valuation and Qualifying Accounts Balance at beginning of year Charged to costs and expenses (1) Deductions (2) Balance at end of year Allowance for doubtful accounts receivable Fiscal 2018 $ - $ 106 $ (106 ) $ - Fiscal 2019 $ - $ 241 $ (140 ) $ 101 Fiscal 2020 $ 101 $ 347 $ (187 ) $ 261 Allowance for doubtful notes receivable Fiscal 2018 $ - $ - $ - $ - Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 602 $ (420 ) $ 182 Deferred tax asset valuation allowance (3) Fiscal 2018 $ - $ - $ - $ - Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 1,273 $ - $ 1,273 (1) Charged to bad debts expense (under other selling, general and administrative expenses) in the consolidated statements of operations. (2) Written off against gross receivable and allowance. (3) Included in deferred tax liability, net in the consolidated balance sheets. |
Schedule of Assets and Liabilit
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | May 25, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Property and equipment, net, fair value | $ 6,042 | $ 10,926 | |||
Indefinite-lived intangibles, fair value | 656 | 5,323 | |||
Goodwill, fair value | 5,883 | 11,627 | |||
Operating lease right-of-use assets, fair value | [1] | 27,310 | |||
Operating lease liabilities, fair value | [1] | (28,551) | |||
Other assets (equity securities), fair value | 84 | 148 | |||
Definite-lived intangibles, net, fair value | 200 | ||||
Goodwill | (45,686) | (53,630) | $ (43,591) | $ (495) | |
Property and equipment, net | (181,383) | (183,956) | |||
Indefinite-lived intangibles | (72,547) | (74,812) | (69,738) | ||
Operating lease right-of-use assets | (25,546) | ||||
Unrealized Gain (Loss/Impairments) Recognized [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Goodwill | (7,944) | (1,638) | (834) | ||
Property and equipment, net | (302) | (4,224) | (1,615) | ||
Indefinite-lived intangibles | (2,265) | (178) | (3,121) | ||
Operating lease right-of-use assets | (104) | ||||
Other assets (equity securities) | (64) | (612) | $ 305 | ||
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Property and equipment, net, fair value | |||||
Indefinite-lived intangibles, fair value | |||||
Goodwill, fair value | |||||
Operating lease right-of-use assets, fair value | [1] | ||||
Operating lease liabilities, fair value | [1] | ||||
Other assets (equity securities), fair value | 84 | 148 | |||
Definite-lived intangibles, net, fair value | |||||
Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Property and equipment, net, fair value | |||||
Indefinite-lived intangibles, fair value | |||||
Goodwill, fair value | |||||
Operating lease right-of-use assets, fair value | [1] | ||||
Operating lease liabilities, fair value | [1] | ||||
Other assets (equity securities), fair value | |||||
Definite-lived intangibles, net, fair value | |||||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Property and equipment, net, fair value | 6,042 | 10,926 | |||
Indefinite-lived intangibles, fair value | 656 | 5,323 | |||
Goodwill, fair value | 5,883 | 11,627 | |||
Operating lease right-of-use assets, fair value | [1] | 27,310 | |||
Operating lease liabilities, fair value | [1] | (28,551) | |||
Other assets (equity securities), fair value | |||||
Definite-lived intangibles, net, fair value | $ 200 | ||||
[1] | Measured at October 1, 2019 upon the adoption of ASC 842. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 02, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Allowance for doubtful accounts | $ 261 | $ 101 | |||
Interest expense related debt | 156 | 597 | $ 319 | ||
Goodwill impairment | 7,944 | $ 1,638 | 834 | ||
Proceeds from sale of property held-for-sale | $ 1,500 | ||||
Operating lease right-of-use assets | $ 104 | $ 27,300 | |||
Equity method investment, additional information | Investments in companies in which the Company owns less than a 20% interest, or where the Company does not exercise significant influence, are accounted for at cost and reviewed for any impairment. | ||||
Stock options outstanding | 0 | ||||
Available-for-sale Securities | $ 84 | $ 148 | |||
Reclassification of deferred rent liability | 1,200 | ||||
Operating lease liability | $ 28,600 | ||||
One Club and One Bombshells [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from sale of property held-for-sale | 302 | 1,600 | |||
Two Clubs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from sale of property held-for-sale | 4,200 | ||||
One Club [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Operating lease right-of-use assets | 104 | ||||
SOB Licenses [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment charges | $ 2,300 | 178 | $ 3,100 | ||
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Equity method investment, ownership percentage | 20.00% | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
Building [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 29 years | ||||
Building [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 40 years | ||||
Furniture and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Furniture and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 7 years | ||||
Notes Receivable [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Allowance for doubtful accounts | $ 182 | $ 0 |
Liquidity and Impact of COVID_2
Liquidity and Impact of COVID-19 Pandemic (Details Narrative) - USD ($) $ in Thousands | May 08, 2020 | Dec. 14, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 02, 2019 |
Entity Listings [Line Items] | ||||||
Debt Instrument, Description | the Company paid monthly installments of principal of $250,000, applied to the first note, until the loan-to-value ratio of the Properties, based upon reduced principal balance of the December 2017 Refinancing Loan and the then current value of the Properties, is not greater than 65%. The loan-to-value ratio of the Properties fell below 65% in October 2019, hence, we stopped paying the additional $250,000 monthly. | |||||
Impairment of assets | $ 10,600 | |||||
Goodwill, Impairment Loss | 7,944 | $ 1,638 | $ 834 | |||
Impairment of SOB licenses | 2,300 | |||||
Impairment of property and equipment | 302 | |||||
Right-of-use operating lease assets | $ 104 | $ 27,300 | ||||
Ten PPP Loans [Member] | ||||||
Entity Listings [Line Items] | ||||||
Proceeds from loans | $ 4,900 | |||||
Debt Instrument, Description | All of the notices received forgave 100% of each of the ten PPP loans totaling the amount of $4.9 million. | |||||
CARES Act [Member] | Our Shared-Services [Member] | ||||||
Entity Listings [Line Items] | ||||||
Subsidiary or equity method investee, cumulative proceeds received on all transactions | $ 1,100 | |||||
CARES Act [Member] | Ten of Our Restaurant [Member] | ||||||
Entity Listings [Line Items] | ||||||
Proceeds from loans | 4,200 | |||||
CARES Act [Member] | Ten of Our Restaurant [Member] | Minimum [Member] | ||||||
Entity Listings [Line Items] | ||||||
Subsidiary or equity method investee, cumulative proceeds received on all transactions | 271 | |||||
CARES Act [Member] | Ten of Our Restaurant [Member] | Maximum [Member] | ||||||
Entity Listings [Line Items] | ||||||
Subsidiary or equity method investee, cumulative proceeds received on all transactions | 579 | |||||
CARES Act [Member] | One of Our Lounges [Member] | ||||||
Entity Listings [Line Items] | ||||||
Subsidiary or equity method investee, cumulative proceeds received on all transactions | $ 124 |
Schedule of Impact of Revisions
Schedule of Impact of Revisions in Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [3] | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||||||||||
Income tax expense | $ 692 | $ (493) | $ 3,744 | $ (3,118) | |||||||||||||||||||||||||||
Net income | 7,523 | (6,312) | 20,445 | 20,960 | |||||||||||||||||||||||||||
Net income attributable to RCIHH common stockholders | $ (2,793) | [1] | $ (5,474) | [1] | $ (3,452) | [1] | $ 5,634 | [1] | $ 458 | [2] | $ 5,638 | [2] | $ 6,735 | [2] | $ 7,463 | [2] | $ (3,506) | [3] | $ 5,389 | $ 4,685 | $ 14,311 | $ (6,085) | $ 20,294 | $ 20,879 | |||||||
Earnings per share - basic and diluted | $ (0.31) | [1] | $ (0.60) | [1] | $ (0.37) | [1] | $ 0.60 | [1] | $ 0.05 | [2] | $ 0.59 | [2] | $ 0.70 | [2] | $ 0.77 | [2] | $ (0.36) | [3] | $ 0.55 | $ 0.48 | $ 1.47 | $ (0.66) | $ 2.10 | $ 2.15 | |||||||
Comprehensive income | $ 7,523 | $ (6,312) | $ 20,225 | $ 21,180 | |||||||||||||||||||||||||||
Comprehensive income attributable to RCIHH common stockholders | 7,463 | (6,085) | 20,074 | 21,099 | |||||||||||||||||||||||||||
Accounts receivable, net | $ 6,767 | $ 6,648 | $ 4,678 | $ 4,250 | $ 7,408 | $ 6,120 | $ 6,698 | 6,702 | 6,767 | 7,408 | |||||||||||||||||||||
Total current assets | 31,433 | 29,469 | 27,886 | 32,018 | 35,890 | 23,716 | 22,978 | 26,186 | 31,433 | 35,890 | |||||||||||||||||||||
Total assets | 360,933 | [4] | 361,493 | 363,015 | 377,292 | 354,756 | [4] | 351,997 | 351,992 | 350,641 | $ 329,732 | [4] | 360,933 | [4] | 354,756 | [4] | 329,732 | [4] | |||||||||||||
Retained earnings | 100,797 | 103,956 | 109,703 | 113,523 | 108,168 | 108,095 | 102,742 | 96,298 | 100,797 | 108,168 | |||||||||||||||||||||
Stockholders' Equity Attributable to Parent | 152,721 | 156,876 | 162,623 | 168,490 | 169,576 | 170,040 | 165,090 | 160,252 | 152,721 | 169,576 | |||||||||||||||||||||
Total equity | $ 152,307 | 156,554 | 162,395 | 168,324 | 169,420 | 170,025 | 165,055 | 160,209 | $ 153,332 | $ 152,307 | 169,420 | $ 153,332 | $ 135,225 | ||||||||||||||||||
Previously Reported [Member] | |||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||||||||||
Income tax expense | 1,811 | 4,863 | |||||||||||||||||||||||||||||
Net income | 6,404 | 19,326 | |||||||||||||||||||||||||||||
Net income attributable to RCIHH common stockholders | $ 6,344 | $ 19,175 | |||||||||||||||||||||||||||||
Earnings per share - basic and diluted | $ 0.65 | $ 1.99 | |||||||||||||||||||||||||||||
Comprehensive income | $ 6,404 | $ 19,106 | |||||||||||||||||||||||||||||
Comprehensive income attributable to RCIHH common stockholders | 6,344 | 18,955 | |||||||||||||||||||||||||||||
Accounts receivable, net | 5,529 | 3,559 | 3,131 | 6,289 | 5,001 | 5,579 | 5,583 | 6,289 | |||||||||||||||||||||||
Total current assets | 28,350 | 26,767 | 30,899 | 34,771 | 22,597 | 21,859 | 25,067 | 34,771 | |||||||||||||||||||||||
Total assets | 360,374 | 361,896 | 376,173 | 353,637 | 350,878 | 350,873 | 349,522 | 353,637 | |||||||||||||||||||||||
Retained earnings | 102,837 | 108,584 | 112,404 | 107,049 | 106,976 | 101,623 | 95,179 | 107,049 | |||||||||||||||||||||||
Stockholders' Equity Attributable to Parent | 155,757 | 161,504 | 167,371 | 168,457 | 168,921 | 163,971 | 159,133 | 168,457 | |||||||||||||||||||||||
Total equity | $ 155,435 | $ 161,276 | $ 167,205 | $ 168,301 | $ 168,906 | $ 163,936 | 159,090 | 168,301 | |||||||||||||||||||||||
Revision of Prior Period, Adjustment [Member] | |||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||||||||||
Income tax expense | (1,119) | (1,119) | |||||||||||||||||||||||||||||
Net income | 1,119 | 1,119 | |||||||||||||||||||||||||||||
Net income attributable to RCIHH common stockholders | $ 1,119 | $ 1,119 | |||||||||||||||||||||||||||||
Earnings per share - basic and diluted | $ 0.12 | $ 0.12 | |||||||||||||||||||||||||||||
Comprehensive income | $ 1,119 | $ 1,119 | |||||||||||||||||||||||||||||
Comprehensive income attributable to RCIHH common stockholders | 1,119 | $ 1,119 | |||||||||||||||||||||||||||||
Accounts receivable, net | 1,119 | ||||||||||||||||||||||||||||||
Total current assets | 1,119 | ||||||||||||||||||||||||||||||
Total assets | 1,119 | ||||||||||||||||||||||||||||||
Retained earnings | 1,119 | ||||||||||||||||||||||||||||||
Stockholders' Equity Attributable to Parent | 1,119 | ||||||||||||||||||||||||||||||
Total equity | $ 1,119 | ||||||||||||||||||||||||||||||
[1] | Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $ 10.6 8.2 982,000 1.4 1.3 22.0% (28.9)% (20.5)% 36.3% | ||||||||||||||||||||||||||||||
[2] | Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 6.0 2.9 1.2 1.1 0.3 0.4 0.8 0.1 0.9 8.4 22.3 24.1 (371.7)% | ||||||||||||||||||||||||||||||
[3] | Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 1.6 5.6 1.6 4.0 8.8 9.7 38,000 827,000 (134.3)% 24.2 25.3 103.8 | ||||||||||||||||||||||||||||||
[4] | See Note 4 for a discussion of revision of prior year immaterial misstatement. |
Revision of Prior Year Immate_3
Revision of Prior Year Immaterial Misstatement (Details Narrative) $ in Millions | Sep. 30, 2020USD ($) |
Accounting Changes and Error Corrections [Abstract] | |
Income tax receivable | $ 1.1 |
Schedule of Disaggregation of S
Schedule of Disaggregation of Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | [1] | Sep. 30, 2019 | [2] | Jun. 30, 2019 | [2] | Mar. 31, 2019 | [2] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [3] | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [3] | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | $ 28,786 | $ 14,721 | $ 40,426 | $ 48,394 | $ 45,183 | $ 47,027 | $ 44,826 | $ 44,023 | $ 40,676 | $ 42,634 | $ 41,226 | $ 41,212 | $ 132,327 | $ 181,059 | $ 165,748 | ||||||||||||
Transferred at Point in Time [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 130,989 | 179,338 | 164,457 | ||||||||||||||||||||||||
Transferred over Time [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 1,338 | 1,721 | 1,291 | ||||||||||||||||||||||||
Sales of Alcoholic Beverages [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 59,080 | 75,140 | 69,120 | ||||||||||||||||||||||||
Food and Beverage [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 24,460 | 25,830 | 22,433 | ||||||||||||||||||||||||
Service [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 41,162 | 68,055 | 64,104 | ||||||||||||||||||||||||
Other Revenues [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 7,625 | 12,034 | 10,091 | ||||||||||||||||||||||||
Nightclubs [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 88,373 | 148,606 | 140,060 | ||||||||||||||||||||||||
Nightclubs [Member] | Transferred at Point in Time [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 87,049 | 146,938 | 138,847 | ||||||||||||||||||||||||
Nightclubs [Member] | Transferred over Time [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 1,324 | 1,668 | 1,213 | ||||||||||||||||||||||||
Nightclubs [Member] | Sales of Alcoholic Beverages [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 31,950 | 57,277 | 54,800 | ||||||||||||||||||||||||
Nightclubs [Member] | Food and Beverage [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 8,561 | 13,051 | 12,732 | ||||||||||||||||||||||||
Nightclubs [Member] | Service [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 41,004 | 67,893 | 64,054 | ||||||||||||||||||||||||
Nightclubs [Member] | Other Revenues [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 6,858 | 10,385 | 8,474 | ||||||||||||||||||||||||
Bombshells [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 43,215 | 30,828 | 24,094 | ||||||||||||||||||||||||
Bombshells [Member] | Transferred at Point in Time [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 43,215 | 30,828 | 24,094 | ||||||||||||||||||||||||
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 | 27,130 | 17,863 | 14,320 | ||||||||||||||||||||||||
Bombshells [Member] | Food and Beverage [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 15,899 | 12,779 | 9,701 | ||||||||||||||||||||||||
Bombshells [Member] | Service [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 158 | 162 | 50 | ||||||||||||||||||||||||
Bombshells [Member] | Other Revenues [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 28 | 24 | 23 | ||||||||||||||||||||||||
Other [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 739 | 1,625 | 1,594 | ||||||||||||||||||||||||
Other [Member] | Transferred at Point in Time [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 725 | 1,572 | 1,516 | ||||||||||||||||||||||||
Other [Member] | Transferred over Time [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | 14 | 53 | 78 | ||||||||||||||||||||||||
Other [Member] | Sales of Alcoholic Beverages [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||||||
Other [Member] | Food and Beverage [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||||||
Other [Member] | Service [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||||||
Other [Member] | Other Revenues [Member] | |||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||
Total revenues | $ 739 | $ 1,625 | $ 1,594 | ||||||||||||||||||||||||
[1] | Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $ 10.6 8.2 982,000 1.4 1.3 22.0% (28.9)% (20.5)% 36.3% | ||||||||||||||||||||||||||
[2] | Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 6.0 2.9 1.2 1.1 0.3 0.4 0.8 0.1 0.9 8.4 22.3 24.1 (371.7)% | ||||||||||||||||||||||||||
[3] | Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 1.6 5.6 1.6 4.0 8.8 9.7 38,000 827,000 (134.3)% 24.2 25.3 103.8 |
Schedule of Reconciliation of C
Schedule of Reconciliation of Contract Liabilities with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers beginning | $ 83 | $ 134 |
Consideration Received | 789 | 1,256 |
Recognized in Revenue | (536) | (1,307) |
Contract liabilities with customers ending | 336 | 83 |
Ad Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers beginning | 76 | 126 |
Consideration Received | 538 | 602 |
Recognized in Revenue | (522) | (652) |
Contract liabilities with customers ending | 92 | 76 |
Expo Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers beginning | ||
Consideration Received | 211 | 602 |
Recognized in Revenue | (602) | |
Contract liabilities with customers ending | 211 | |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers beginning | 7 | 8 |
Consideration Received | 40 | 52 |
Recognized in Revenue | (14) | (53) |
Contract liabilities with customers ending | $ 33 | $ 7 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Selected Account Information | ||||||||
Credit card receivables | $ 880 | $ 1,396 | ||||||
Income tax refundable | 4,325 | 2,900 | ||||||
Insurance receivable | 191 | 1,197 | ||||||
ATM-in-transit | 160 | 780 | ||||||
Other (net of allowance for doubtful accounts of $261 and $101, respectively) | 1,211 | 1,135 | ||||||
Accounts receivable, net | $ 6,767 | $ 6,648 | $ 4,678 | $ 4,250 | $ 7,408 | $ 6,120 | $ 6,698 | $ 6,702 |
Schedule of Accounts Receivab_2
Schedule of Accounts Receivable (Details) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Selected Account Information | ||
Allowance for doubtful accounts | $ 261 | $ 101 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Selected Account Information | |||
Insurance | $ 4,405 | $ 4,937 | |
Payroll and related costs | 2,419 | 2,892 | |
Property taxes | 2,003 | 1,675 | |
Sales and liquor taxes | 2,613 | 3,086 | |
Interest | 1,390 | 508 | |
Patron tax | 309 | 595 | |
Lawsuit settlement | 100 | 115 | |
Unearned revenues | 336 | 83 | $ 134 |
Other | 998 | 753 | |
Accrued liabilities | $ 14,573 | $ 14,644 |
Schedule of Selling, General an
Schedule of Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Selected Account Information | |||
Taxes and permits | $ 8,071 | $ 10,779 | $ 9,545 |
Advertising and marketing | 5,367 | 8,392 | 7,536 |
Supplies and services | 4,711 | 5,911 | 5,344 |
Insurance | 5,777 | 5,429 | 5,473 |
Lease | 4,060 | 3,896 | 3,720 |
Legal | 4,725 | 5,180 | 3,586 |
Utilities | 2,945 | 3,165 | 2,969 |
Charge cards fees | 2,382 | 3,803 | 3,244 |
Security | 2,582 | 2,973 | 2,617 |
Accounting and professional fees | 3,463 | 2,815 | 2,944 |
Repairs and maintenance | 2,289 | 2,980 | 2,184 |
Other | 5,320 | 4,573 | 4,662 |
Selling, general and administrative expenses | $ 51,692 | $ 59,896 | $ 53,824 |
Schedule of Components of Other
Schedule of Components of Other Charges, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Selected Account Information | |||
Impairment of assets | $ 10,615 | $ 6,040 | $ 5,570 |
Settlement of lawsuits | 174 | 225 | 1,669 |
Loss (gain) on sale of businesses and assets | (661) | (2,877) | 1,965 |
Loss (gain) on insurance | 420 | (768) | (20) |
Other charges | $ 10,548 | $ 2,620 | $ 9,184 |
Selected Account Information (D
Selected Account Information (Details Narrative) | Aug. 15, 2018 | Apr. 24, 2018 | Oct. 05, 2016 | Sep. 30, 2020 | Jul. 31, 2019 | Oct. 31, 2018 | Sep. 25, 2018 | May 25, 2018 | Feb. 15, 2018 |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||||||||
Secured promissory notes interest rate | 12.00% | 9.00% | 9.00% | 7.00% | 8.00% | 5.25% | |||
Secured promissory notes term | 3 years | 24 months | 5 years | ||||||
Minimum [Member] | |||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||||||||
Secured promissory notes interest rate | 6.00% | ||||||||
Secured promissory notes term | 1 year | ||||||||
Maximum [Member] | |||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||||||||
Secured promissory notes interest rate | 9.00% | ||||||||
Secured promissory notes term | 20 years |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 240,328 | $ 239,261 |
Less accumulated depreciation | (58,945) | (55,305) |
Property and equipment, net | 181,383 | 183,956 |
Land and Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 163,938 | 159,969 |
Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 37,000 | 37,031 |
Leaseholds and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 29,776 | 32,868 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 9,614 | $ 9,393 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Construction in progress, gross | $ 20 | $ 8,900 | |
Depreciation expense | 8,200 | 8,400 | $ 7,500 |
Impairment loss of property and equipment | $ 302 | $ 4,200 | $ 1,600 |
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, 2020 | |
Multiemployer Plan [Line Items] | |||
Proceeds from sale of property held-for-sale | $ 1,500 | ||
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 |
Schedule of Goodwill and Other
Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | May 25, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 45,686 | $ 53,630 | $ 43,591 | $ 495 |
Licenses | 70,332 | 72,597 | ||
Tradename | 2,215 | 2,215 | ||
Indefinite Intangible Assets, Net, Total | 118,233 | 128,442 | ||
Finite-Lived Intangible Assets, Net, Total | 530 | 1,139 | ||
Total goodwill and other intangible assets | 118,763 | 129,581 | ||
Discounted Leases [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net, Total | $ 93 | $ 101 | ||
Discounted Leases [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 18 years | 18 years | ||
Discounted Leases [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years | ||
Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | ||
Finite-Lived Intangible Assets, Net, Total | $ 362 | $ 565 | ||
Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | ||
Finite-Lived Intangible Assets, Net, Total | $ 23 | $ 315 | ||
Distribution Agreement [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years | ||
Finite-Lived Intangible Assets, Net, Total | $ 52 | $ 158 |
Schedule of Indefinite-lived, D
Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Definite- Lived Intangibles, Beginning balance | $ 1,139 | $ 1,794 | |
Indefinite-Lived Intangibles, Beginning balance | 74,812 | 69,738 | |
Goodwill, Beginning balance | 53,630 | 43,591 | |
Definite- Lived Intangibles, Acquisitions | 243 | ||
Indefinite-Lived Intangibles, Acquisitions | 5,252 | ||
Goodwill, Acquisitions | 11,677 | ||
Definite- Lived Intangibles, Impairment | |||
Indefinite-Lived Intangibles, Impairment | (2,265) | (178) | |
Goodwill, Impairment | (7,944) | (1,638) | $ (834) |
Definite- Lived Intangibles, Amortization | (609) | (898) | |
Indefinite-Lived Intangibles, Amortization | |||
Goodwill, Amortization | |||
Definite- Lived Intangibles, Ending balance | 530 | 1,139 | 1,794 |
Indefinite-Lived Intangibles, Ending balance | 72,547 | 74,812 | 69,738 |
Goodwill, Ending balance | $ 45,686 | $ 53,630 | $ 43,591 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 8,400 | $ 6,100 | |
Accumulated impairment of goodwill | 14,300 | 6,300 | |
Finite-lived intangible assets, amortization expense, 2021 | 263 | ||
Finite-lived intangible assets, amortization expense, 2022 | 134 | ||
Finite-lived intangible assets, amortization expense, 2023 | 59 | ||
Finite-lived intangible assets, amortization expense, 2024 | 11 | ||
Finite-lived intangible assets, amortization expense, 2025 | 7 | ||
Finite-lived intangible assets, amortization expense, there after | 56 | ||
Seven Reporting Units [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and intangible asset impairment | 7,900 | ||
Four Reporting Units [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and intangible asset impairment | 1,600 | ||
Two Reporting Units [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and intangible asset impairment | $ 834 | ||
SOB Licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and intangible asset impairment | $ 2,300 | $ 178 | $ 3,100 |
Schedule of Long-term Debt (Det
Schedule of Long-term Debt (Details) (Parenthetical) | May 01, 2020 | Sep. 25, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2018 | May 25, 2018 | Apr. 24, 2018 | Feb. 20, 2018 | Feb. 15, 2018 | Oct. 05, 2016 |
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 9.00% | 9.00% | 8.00% | 5.25% | 12.00% | |||||
Debt Instrument, Maturity Date, Description | due on May 1, 2020 | May 2019 | |||||||||
Prime Plus [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 2.00% | 1.00% | ||||||||
Notes payable One [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |||||||||
Debt Instrument, Maturity Date, Description | January 2023 | January 2023 | |||||||||
Notes Payable Two [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.60% | 9.60% | |||||||||
Debt Instrument, Maturity Date, Description | March 2022 and May 2022 | March 2022 and May 2022 | |||||||||
Notes Payable Three [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||||||||
Debt Instrument, Maturity Date, Description | December 2027, as amended | ||||||||||
Notes Payable Four [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |||||||||
Debt Instrument, Maturity Date, Description | December 2027 | December 2027 | |||||||||
Notes Payable Five [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Debt Instrument, Maturity Date, Description | February 2030 | February 2030 | |||||||||
Notes Payable Six [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Debt Instrument, Maturity Date, Description | November 2021 | November 2021 | |||||||||
Notes Payable Seven [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Debt Instrument, Maturity Date, Description | October 2022 | October 2022 | |||||||||
Notes Payable Eight [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Debt Instrument, Maturity Date, Description | May 2029 | May 2029 | |||||||||
Notes Payable Nine [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||||||||
Debt Instrument, Maturity Date, Description | December 2027 | December 2027 | |||||||||
Notes Payable Ten [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.99% | 5.99% | |||||||||
Debt Instrument, Maturity Date, Description | September 2033 | September 2033 | |||||||||
Notes Payable Eleven [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||||
Debt Instrument, Maturity Date, Description | August 2029 | August 2029 | |||||||||
Notes Payable Thirteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |||||||||
Debt Instrument, Maturity Date, Description | September 2030 | September 2030 | |||||||||
Notes Payable Thirteen [Member] | Prime Plus [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.50% | |||||||||
Notes Payable Fourteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Debt Instrument, Maturity Date, Description | May 2021 | May 2021 | |||||||||
Notes Payable Fifteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |||||||||
Debt Instrument, Maturity Date, Description | August 2039 | August 2039 | |||||||||
Notes Payable Sixteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Debt Instrument, Maturity Date, Description | February 2030 | February 2030 | |||||||||
Notes Payable Seventeen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |||||||||
Debt Instrument, Maturity Date, Description | September 2028 | September 2028 | |||||||||
Notes Payable Eighteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |||||||||
Debt Instrument, Maturity Date, Description | September 2028 | September 2028 | |||||||||
Notes Payable Nineteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||||||
Debt Instrument, Maturity Date, Description | February 2040 | February 2040 | |||||||||
Notes Payable Twenty [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.49% | 5.49% | |||||||||
Debt Instrument, Maturity Date, Description | March 2039 | March 2039 | |||||||||
Notes Payable Twenty One [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |||||||||
Debt Instrument, Maturity Date, Description | November 2024 | November 2024 | |||||||||
Notes Payable Twenty Two [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |||||||||
Debt Instrument, Maturity Date, Description | February 2021 | February 2021 | |||||||||
Notes Payable Twenty Three [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Debt Instrument, Maturity Date, Description | November 2021 | November 2021 | |||||||||
Notes Payable Twenty Four [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Debt Instrument, Maturity Date, Description | November 2028 | November 2028 | |||||||||
Notes Payable Twenty Five [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||||||||
Debt Instrument, Maturity Date, Description | May 2022 |
Schedule of Long-term Debt (D_2
Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | May 01, 2020 | Sep. 25, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | May 25, 2018 | Apr. 24, 2018 | Feb. 20, 2018 | Feb. 15, 2018 | Oct. 05, 2016 | Jun. 30, 2015 | |
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 142,674 | $ 145,003 | $ 9,900 | $ 7,200 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 9.00% | 9.00% | 8.00% | 5.25% | 12.00% | ||||||||
Debt Instrument, Maturity Date, Description | due on May 1, 2020 | May 2019 | ||||||||||||
Less unamortized debt discount and issuance costs | (1,239) | (1,475) | ||||||||||||
Less current portion | (16,304) | (15,754) | ||||||||||||
Total long-term portion of debt, net | 125,131 | 127,774 | ||||||||||||
Prime Plus [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 2.00% | 1.00% | |||||||||||
Notes payable One [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 886 | $ 981 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||||||||||||
Debt Instrument, Maturity Date, Description | January 2023 | January 2023 | ||||||||||||
Notes Payable Two [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 2,177 | $ 3,379 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.60% | 9.60% | ||||||||||||
Debt Instrument, Maturity Date, Description | March 2022 and May 2022 | March 2022 and May 2022 | ||||||||||||
Notes Payable Three [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 9,715 | $ 9,877 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | ||||||||||||
Debt Instrument, Maturity Date, Description | December 2027, as amended | |||||||||||||
Notes Payable Four [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 5,787 | $ 6,776 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | ||||||||||||
Debt Instrument, Maturity Date, Description | December 2027 | December 2027 | ||||||||||||
Notes Payable Five [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 5,031 | $ 5,518 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | February 2030 | February 2030 | ||||||||||||
Notes Payable Six [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 1,940 | $ 2,040 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | November 2021 | November 2021 | ||||||||||||
Notes Payable Seven [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 3,025 | $ 3,025 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | October 2022 | October 2022 | ||||||||||||
Notes Payable Eight [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 12,599 | $ 13,569 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | May 2029 | May 2029 | ||||||||||||
Notes Payable Nine [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 49,830 | $ 51,167 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | ||||||||||||
Debt Instrument, Maturity Date, Description | December 2027 | December 2027 | ||||||||||||
Notes Payable Ten [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 6,395 | $ 6,555 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.99% | 5.99% | ||||||||||||
Debt Instrument, Maturity Date, Description | September 2033 | September 2033 | ||||||||||||
Notes Payable Eleven [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 2,165 | $ 3,709 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | August 2029 | August 2029 | ||||||||||||
Notes Payable Twelve [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 2,099 | $ 2,099 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||||||||||||
Debt Instrument, Maturity Date, Description | September 2035 | |||||||||||||
Notes Payable Twelve [Member] | Prime Plus [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.50% | ||||||||||||
Notes Payable Thirteen [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 2,861 | $ 2,619 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||||||||||||
Debt Instrument, Maturity Date, Description | September 2030 | September 2030 | ||||||||||||
Notes Payable Thirteen [Member] | Prime Plus [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.50% | ||||||||||||
Notes Payable Fourteen [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 582 | $ 771 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | May 2021 | May 2021 | ||||||||||||
Notes Payable Fifteen [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 6,979 | $ 6,858 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | ||||||||||||
Debt Instrument, Maturity Date, Description | August 2039 | August 2039 | ||||||||||||
Notes Payable Sixteen [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 3,875 | $ 4,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | February 2030 | February 2030 | ||||||||||||
Notes Payable Seventeen [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 1,167 | $ 1,263 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | September 2028 | September 2028 | ||||||||||||
Notes Payable Eighteen [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 1,489 | $ 1,511 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | ||||||||||||
Debt Instrument, Maturity Date, Description | September 2028 | September 2028 | ||||||||||||
Notes Payable Nineteen [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | [1] | $ 4,066 | $ 3,608 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | February 2040 | February 2040 | ||||||||||||
Notes Payable Twenty [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 2,125 | $ 2,156 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.49% | 5.49% | ||||||||||||
Debt Instrument, Maturity Date, Description | March 2039 | March 2039 | ||||||||||||
Notes Payable Twenty One [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 3,319 | $ 3,982 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | November 2024 | November 2024 | ||||||||||||
Notes Payable Twenty Two [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 2,000 | $ 2,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | February 2021 | February 2021 | ||||||||||||
Notes Payable Twenty Three [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 2,350 | $ 2,350 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | November 2021 | November 2021 | ||||||||||||
Notes Payable Twenty Four [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 4,790 | $ 5,190 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||||
Debt Instrument, Maturity Date, Description | November 2028 | November 2028 | ||||||||||||
Notes Payable Twenty Five [Member] | ||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||
Total debt | $ 5,422 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||||||||||
Debt Instrument, Maturity Date, Description | May 2022 | |||||||||||||
[1] | These commercial bank debts are guaranteed by the Company’s CEO. See Note 21. |
Schedule of Long-term Debt Inst
Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 05, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||||
Total debt | $ 142,674 | $ 145,003 | $ 9,900 | $ 7,200 |
Other Assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 8,520 | 8,711 | ||
Stock In Subsidiary [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 25,733 | 27,766 | ||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 21,681 | 18,269 | ||
Real Estate [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 86,740 | $ 90,258 |
Schedule of Maturities of Long-
Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 05, 2016 | Jun. 30, 2015 |
Short-term Debt [Line Items] | ||||
2021 | $ 16,503 | |||
2022 | 13,382 | |||
2023 | 11,766 | |||
2024 | 8,642 | |||
2025 | 8,479 | |||
Thereafter | 83,902 | |||
Total maturities of long-term debt, net of debt discount | 142,674 | $ 145,003 | $ 9,900 | $ 7,200 |
Regular Amortization [Member] | ||||
Short-term Debt [Line Items] | ||||
2021 | 12,098 | |||
2022 | 11,032 | |||
2023 | 8,090 | |||
2024 | 8,642 | |||
2025 | 8,479 | |||
Thereafter | 41,911 | |||
Total maturities of long-term debt, net of debt discount | 90,252 | |||
Balloon Payments [Member] | ||||
Short-term Debt [Line Items] | ||||
2021 | 4,405 | |||
2022 | 2,350 | |||
2023 | 3,676 | |||
2024 | ||||
2025 | ||||
Thereafter | 41,991 | |||
Total maturities of long-term debt, net of debt discount | $ 52,422 |
Debt (Details Narrative)
Debt (Details Narrative) | May 08, 2020USD ($) | May 01, 2020USD ($) | Feb. 20, 2020USD ($) | Dec. 19, 2019 | Feb. 08, 2019USD ($) | Dec. 11, 2018USD ($) | Nov. 05, 2018USD ($) | Nov. 01, 2018USD ($) | Nov. 01, 2018USD ($) | Sep. 26, 2018USD ($) | Sep. 25, 2018USD ($) | Sep. 17, 2018USD ($) | Sep. 06, 2018USD ($) | Aug. 28, 2018USD ($) | Aug. 15, 2018USD ($) | May 25, 2018USD ($) | Apr. 24, 2018USD ($) | Feb. 20, 2018USD ($) | Feb. 15, 2018USD ($) | Dec. 14, 2017USD ($) | Dec. 14, 2017USD ($) | Dec. 07, 2017USD ($) | May 08, 2017USD ($) | May 01, 2017USD ($) | Oct. 05, 2016USD ($) | Oct. 31, 2020USD ($) | Mar. 31, 2020 | Jul. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Mar. 31, 2017USD ($)Integer | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jan. 31, 2012USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Nov. 02, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 14, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 1,740,000 | $ 1,000,000 | $ 625,000 | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Payment Terms | The note, as modified, still bears interest at 9% and is payable in 108 equal monthly installments of $11,905, including principal and interest, until July 2028. | |||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 3 years | 24 months | 5 years | |||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 250,000,000,000 | $ 118,817 | $ 11,905 | $ 5,078 | ||||||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | 8.00% | 5.25% | 12.00% | 9.00% | 9.00% | ||||||||||||||||||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ 10,000,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||
Monthly Installment Of Settlement Loss | $ 119,000 | $ 119,000 | ||||||||||||||||||||||||||||||||||||||
Patron tax rate per customer | 9.60% | |||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 9,900,000 | $ 7,200,000 | 142,674,000 | $ 145,003,000 | ||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 2,000,000 | $ 8,000,000 | ||||||||||||||||||||||||||||||||||||||
Debt maturity date | Feb. 15, 2038 | |||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | 4,000,000 | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 879,085 | |||||||||||||||||||||||||||||||||||||||
Loan from bank | $ 4,000,000 | $ 1,900,000 | $ 3,000,000 | |||||||||||||||||||||||||||||||||||||
Debt instrument, description | the Company paid monthly installments of principal of $250,000, applied to the first note, until the loan-to-value ratio of the Properties, based upon reduced principal balance of the December 2017 Refinancing Loan and the then current value of the Properties, is not greater than 65%. The loan-to-value ratio of the Properties fell below 65% in October 2019, hence, we stopped paying the additional $250,000 monthly. | |||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | The bank note bears interest at 5.25% adjusted after 36 months to prime plus 1% with a floor of 5.2% and matures on February 15, 2038. The bank note is payable interest-only during the first 18 months, after which monthly payments of principal and interest will be made based on a 20-year amortization with the remaining balance to be paid at maturity. | |||||||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 250,000 | |||||||||||||||||||||||||||||||||||||||
Payments to Acquire Land | $ 5,500,000 | $ 4,000,000 | ||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | due on May 1, 2020 | May 2019 | ||||||||||||||||||||||||||||||||||||||
Amortization | $ 16,396 | |||||||||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1,500,000 | |||||||||||||||||||||||||||||||||||||||
Due from Related Parties | $ 2,350,000 | $ 2,350,000 | ||||||||||||||||||||||||||||||||||||||
Purchase value of aircraft | $ 2,800,000 | |||||||||||||||||||||||||||||||||||||||
Payments to Acquire Productive Assets | 554,000 | |||||||||||||||||||||||||||||||||||||||
Remaining amount to be paid for purchase of aircraft | $ 2,200,000 | |||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,690,000 | |||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | extended to November 2021 | |||||||||||||||||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 1 year | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6.00% | |||||||||||||||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 20 years | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 9.00% | |||||||||||||||||||||||||||||||||||||||
Fiscal 2018 [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 2,900,000 | |||||||||||||||||||||||||||||||||||||||
Fiscal 2020 [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 19,400,000 | |||||||||||||||||||||||||||||||||||||||
Fiscal 2021 [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 5,300,000 | |||||||||||||||||||||||||||||||||||||||
November One Twenty Twenty [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 2,040,000 | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,940,000 | |||||||||||||||||||||||||||||||||||||||
Short-term Debt [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 5,000,000 | |||||||||||||||||||||||||||||||||||||||
Short-term Debt [Member] | October 1, 2022 [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 3,000,000 | |||||||||||||||||||||||||||||||||||||||
Non-Officer Employee [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 200,000 | |||||||||||||||||||||||||||||||||||||||
Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 3,400,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 15 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 59,869 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.99% | |||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Debt | $ 7,100,000 | |||||||||||||||||||||||||||||||||||||||
Loan extended description | September 2033 | |||||||||||||||||||||||||||||||||||||||
Repayments of Notes Payable | 300,000 | |||||||||||||||||||||||||||||||||||||||
Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | 10 years | ||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 11,138 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.95% | |||||||||||||||||||||||||||||||||||||||
Debt instrument, description | The 10-year note payable has an initial interest rate of 5.95% until after five years when the interest rate is adjusted to the U.S. Treasury rate plus 3.5%, with a 5.95% floor. | |||||||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||||||
Payments of Debt Issuance Costs | $ 40,000 | |||||||||||||||||||||||||||||||||||||||
Payments to Acquire Land | $ 960,000 | |||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,900,000 | |||||||||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1,550,000 | |||||||||||||||||||||||||||||||||||||||
Proceeds from related party debt | $ 5,000,000 | |||||||||||||||||||||||||||||||||||||||
Private Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 1,350,000 | $ 500,000 | $ 4,000,000 | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | 3 years | ||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 17,101 | $ 40,000 | ||||||||||||||||||||||||||||||||||||||
Debt interest rate | 9.00% | 12.00% | 12.00% | |||||||||||||||||||||||||||||||||||||
Lender And Affiliates [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Proceeds from Notes Payable | $ 200,000 | |||||||||||||||||||||||||||||||||||||||
Settlement Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [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 | |||||||||||||||||||||||||||||||||||||||
[custom:PatronTaxRatePerCustomer] | 5 | |||||||||||||||||||||||||||||||||||||||
Real Estate Notes [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 6,500,000 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.50% | |||||||||||||||||||||||||||||||||||||||
Second Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 390,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 78,098 | |||||||||||||||||||||||||||||||||||||||
Patron tax rate per customer | 9.60% | |||||||||||||||||||||||||||||||||||||||
Loan from bank | $ 10,600,000 | |||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | until July 2020 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 5.75% | 5.75% | ||||||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.45% | 5.45% | ||||||||||||||||||||||||||||||||||||||
12% Unsecured Promissory Notes [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Unsecured Debt | $ 5,400,000 | |||||||||||||||||||||||||||||||||||||||
Debt maturity date | May 1, 2020 | |||||||||||||||||||||||||||||||||||||||
Unsecured Promissory Notes [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 17,101 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 9.00% | 12.00% | ||||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 500,000 | |||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 1,350,000 | |||||||||||||||||||||||||||||||||||||||
Two Notes [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Proceeds from related party debt | 300,000 | |||||||||||||||||||||||||||||||||||||||
Two Notes [Member] | Investors [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 400,000 | |||||||||||||||||||||||||||||||||||||||
Short-term Debt [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Oct. 1, 2022 | |||||||||||||||||||||||||||||||||||||||
December 2017 Refinancing Loan [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Loan from bank | $ 81,200,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, description | The December 2017 Refinancing Loan fully refinanced 20 of the Company’s notes payable and partially paid down 1 note payable (collectively, “Repaid Notes”) with interest rates ranging from 5% to 12% covering 43 parcels of real properties the Company previously acquired (“Properties”). | |||||||||||||||||||||||||||||||||||||||
December 2017 Refinancing Loan [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||||||||
December 2017 Refinancing Loan [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 12.00% | 12.00% | ||||||||||||||||||||||||||||||||||||||
First Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 442,058 | |||||||||||||||||||||||||||||||||||||||
Loan from bank | $ 62,500,000 | |||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | first five years | |||||||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||||||
Escrow Deposit | $ 4,600,000 | $ 4,600,000 | ||||||||||||||||||||||||||||||||||||||
Third Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 100,062 | |||||||||||||||||||||||||||||||||||||||
Loan from bank | $ 8,100,000 | |||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | until August 2021 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 5.75% | 5.75% | ||||||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.95% | 5.95% | ||||||||||||||||||||||||||||||||||||||
Repaid Notes [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 279,000 | |||||||||||||||||||||||||||||||||||||||
Percentage of Costs of Litigation | 612,500 | |||||||||||||||||||||||||||||||||||||||
Payments of Debt Issuance Costs | 764,000 | |||||||||||||||||||||||||||||||||||||||
Prepayment penalties paid | $ 543,000 | |||||||||||||||||||||||||||||||||||||||
Old Aircraft's Note Payable [Member] | Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||
New Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 72 months | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 53,084 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.95% | |||||||||||||||||||||||||||||||||||||||
Debt instrument, description | The new note has an initial interest rate of 5.95%,subject to a repricing after 72 months to prime plus 1% with a 5.9% floor. The note is payable $53,084 per month, including interest, for 72 months, then adjusted based on repriced interest rate until its August 2039 maturity. | |||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | August 2039 | |||||||||||||||||||||||||||||||||||||||
New Note [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 7,400,000 | |||||||||||||||||||||||||||||||||||||||
Construction Loan Payable [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Aug. 20, 2029 | |||||||||||||||||||||||||||||||||||||||
Loan from bank | $ 4,700,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, description | During the first 18 months of the construction loan, the Company will make monthly interest-only payments, and after such, monthly payments of principal and interest will be made based on a 20-year amortization with the remaining balance to be paid at maturity | |||||||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||||||
12% Unsecured Promissory Notes [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 12.00% | 12.00% | ||||||||||||||||||||||||||||||||||||||
Debt maturity date | Nov. 1, 2021 | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 2,350,000 | $ 2,350,000 | ||||||||||||||||||||||||||||||||||||||
Due from Related Parties | 2,350,000 | 2,350,000 | ||||||||||||||||||||||||||||||||||||||
Proceeds from related party debt | 500,000 | |||||||||||||||||||||||||||||||||||||||
Note One [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 450,000 | 450,000 | ||||||||||||||||||||||||||||||||||||||
Note exchange amount | 300,000 | 300,000 | ||||||||||||||||||||||||||||||||||||||
Note Two [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 200,000 | 200,000 | ||||||||||||||||||||||||||||||||||||||
Note exchange amount | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||||||||
Twelve Pecentage Unsecured Promissory Notes Two [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Proceeds from related party debt | 100,000 | |||||||||||||||||||||||||||||||||||||||
Seller One Notes Payable [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 2 years | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | |||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | extended to February 2021 | |||||||||||||||||||||||||||||||||||||||
Seller Two Notes Payable [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 5,500,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
5.49% Promissory Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Payment Terms | promissory note payable in 20 years with monthly payments | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 15,118 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.49% | |||||||||||||||||||||||||||||||||||||||
One-Year Bank Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 29,571 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6.10% | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,500,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument, description | The new construction loan, which has a maximum availability of $4.1 million, matures in 252 months from closing date and is payable interest-only for the first 12 months, then principal and interest of $29,571 monthly for the next 48 months, and the remaining term monthly payments of principal and interest based on the adjusted interest rate. | |||||||||||||||||||||||||||||||||||||||
Payments of Debt Issuance Costs | $ 69,000 | |||||||||||||||||||||||||||||||||||||||
Debt Issuance Costs, Net | $ 19,600 | |||||||||||||||||||||||||||||||||||||||
One-Year Bank Note [Member] | Construction Loan [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6.00% | |||||||||||||||||||||||||||||||||||||||
One-Year Bank Note [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,100,000 | |||||||||||||||||||||||||||||||||||||||
Ten Year Note Payable [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||
Ten Year Note Payable [Member] | Private Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 57,388 | |||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | the Company restructured the note with a private lender by executing a 12% 10-year note payable | |||||||||||||||||||||||||||||||||||||||
Restructed Note [Member] | August Twenty Twenty One [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||
Restructed Note [Member] | October Twenty Twenty One [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 3,800,000 | |||||||||||||||||||||||||||||||||||||||
Refinancing Loan [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | 74,515 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 5,200,000 | $ 9,900,000 | ||||||||||||||||||||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 25,400 | |||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | by executing a 12% 10-year note payable | |||||||||||||||||||||||||||||||||||||||
Ten PPP Loans [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, description | All of the notices received forgave 100% of each of the ten PPP loans totaling the amount of $4.9 million. | |||||||||||||||||||||||||||||||||||||||
Proceeds from Loans | $ 4,900,000 | |||||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 0.50% | 2.00% | 1.00% | |||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 0.50% | |||||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | New Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 1.00% | |||||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Construction Loan Payable [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 0.50% | |||||||||||||||||||||||||||||||||||||||
U.S.Treasury Rate [Member] | First Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 3.50% | 3.50% | ||||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.00% | 5.50% | 5.20% | |||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 3.50% | |||||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | First Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 5.75% | 5.75% | ||||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | New Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.90% | |||||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | Construction Loan Payable [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||
Floor Rate [Member] | Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.50% | 5.95% | ||||||||||||||||||||||||||||||||||||||
Floor Rate [Member] | One-Year Bank Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6.00% | |||||||||||||||||||||||||||||||||||||||
Prime Rate [Member] | One-Year Bank Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 0.50% | |||||||||||||||||||||||||||||||||||||||
Silver City [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 1,500,000 | |||||||||||||||||||||||||||||||||||||||
Debt Instrument, Payment Terms | The notes are payable over eleven years at $12,256 per month including interest and have an adjustable interest rate of 5.5%. The rate adjusts to prime plus 2.5% in the 61st month, not to exceed 9% | |||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 11 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 12,256 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.50% | |||||||||||||||||||||||||||||||||||||||
Silver City [Member] | Prime Plus [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 2.50% | |||||||||||||||||||||||||||||||||||||||
Real Estate Notes [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 11 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 53,110 | |||||||||||||||||||||||||||||||||||||||
Scarlett's Acquisition [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 5,000,000 | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||
Debt Instrument, Payment Terms | extending the maturity date to October 1, 2022. | |||||||||||||||||||||||||||||||||||||||
Scarlett's Acquisition [Member] | Promissory Note One [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 5,000,000 | |||||||||||||||||||||||||||||||||||||||
Scarlett's Acquisition [Member] | Promissory Note Two [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 168,343 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 15,600,000 | |||||||||||||||||||||||||||||||||||||||
Short-term Debt [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Kappa, Illinois [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 3 years | |||||||||||||||||||||||||||||||||||||||
Debt, monthly payment including interest | $ 20,276 | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1,500,000 | |||||||||||||||||||||||||||||||||||||||
Debt amortization period, description | five | |||||||||||||||||||||||||||||||||||||||
Kappa, Illinois [Member] | Seller Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||
Chicago Club [Member] | Seller Note [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 4,500,000 | $ 4,500,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument, term | 6 years | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | 7.00% |
Schedule of Income Tax Expense
Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Federal | $ 215 | $ 1,886 | $ 2,438 | |
State and local | 560 | 1,037 | 1,219 | |
Total current income tax expense (benefit) | 775 | 2,923 | 3,657 | |
Federal | (1,248) | 913 | (8,096) | |
State and local | (20) | (92) | 1,321 | |
Total deferred income tax expense (benefit) | (1,268) | 821 | (6,775) | |
Total income tax expense (benefit) | $ 692 | $ (493) | $ 3,744 | $ (3,118) |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Computed expected income tax expense (benefit) | $ (1,429) | $ 5,080 | $ 4,371 | |
State income taxes, net of federal benefit | 253 | 672 | 804 | |
Deferred taxes on subsidiaries acquired/sold | 709 | |||
Permanent differences | 395 | 45 | 85 | |
Change in deferred tax liability rate | (8,832) | |||
Change in valuation allowance | 1,273 | |||
Tax credits | (945) | (900) | (808) | |
Other | (40) | (1,153) | 553 | |
Total income tax expense (benefit) | $ 692 | $ (493) | $ 3,744 | $ (3,118) |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | ||
Patron tax | $ 349 | $ 621 |
Capital loss carryforwards | 1,263 | 420 |
Other | 2,046 | |
Valuation allowance | (1,273) | |
Net deferred tax assets | 2,385 | 1,041 |
Intangibles | (14,106) | (14,491) |
Property and equipment | (8,669) | (8,024) |
Other | (184) | |
Deferred tax liabilities | (22,775) | (22,699) |
Net deferred tax liability | $ (20,390) | $ (21,658) |
Schedule of Uncertain Tax Posit
Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 165 | $ 865 | |
Additions for tax positions of prior years | |||
Decrease related to settlements with taxing authorities | (700) | ||
Reduction due to lapse from closed examination | (165) | ||
Balance at end of year | $ 165 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | May 08, 2020 | Mar. 27, 2020 | Dec. 14, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Operating Loss Carryforwards [Line Items] | ||||||
Statutory federal corporate income tax rate | 21.00% | 24.50% | ||||
Remeasurement of deferred tax liability | $ 8,800,000 | |||||
Deferred tax liabilities | $ 14,900,000 | $ 19,300,000 | ||||
Unrecognized tax benefits released | $ 700,000 | |||||
Debt Instrument, Description | the Company paid monthly installments of principal of $250,000, applied to the first note, until the loan-to-value ratio of the Properties, based upon reduced principal balance of the December 2017 Refinancing Loan and the then current value of the Properties, is not greater than 65%. The loan-to-value ratio of the Properties fell below 65% in October 2019, hence, we stopped paying the additional $250,000 monthly. | |||||
Ten PPP Loans [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Debt Instrument, Description | All of the notices received forgave 100% of each of the ten PPP loans totaling the amount of $4.9 million. | |||||
Proceeds from Loans | $ 4,900,000 | |||||
Ten Restaurant Subsidiaries [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 4,200,000 | |||||
Ten Restaurant Subsidiaries [Member] | Minimum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 271,000 | |||||
Ten Restaurant Subsidiaries [Member] | Maximum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 579,000 | |||||
Shared Services Subsidiary [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 1,100,000 | |||||
Tax Cuts and Jobs Act Tax Act [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax reconciliation description | The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017, and includes, among other items, a reduction in the federal corporate income tax rate from 35% to | |||||
Statutory federal corporate income tax rate | 21.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Sep. 21, 2020USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($)Integer | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2020$ / shares |
Loss Contingencies [Line Items] | ||||||||||
Patron tax amount agreed to pay | $ 10,000,000 | |||||||||
Monthly installment of settlement loss | $ 119,000 | $ 119,000 | ||||||||
Patron tax on monthly basis per customer | $ / shares | $ 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 | $ 2,200,000 | $ 3,400,000 | ||||||||
Compensation | $ 615,000 | |||||||||
Payment of civil penalties | 400,000 | |||||||||
Loss contingency, damages sought, value | $ 10,000,000 | 1,000,000 | ||||||||
Appeal process amount | 690,000 | |||||||||
Payments for legal settlements | $ 174,000 | 225,000 | $ 1,700,000 | |||||||
Mr Langan [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payment of civil penalties | 200,000 | |||||||||
Mr Marshall [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payment of civil penalties | $ 35,000 | |||||||||
Indemnity Insurance Corporation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Percentage of costs of litigation | 100.00% | |||||||||
Compensatory Damages [Member] | JAI Phoenix [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages sought, value | $ 1,400,000 | |||||||||
Punitive Damages [Member] | JAI Phoenix [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 | $ 100,000 | $ 115,000 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 12 Months Ended | ||||
Dec. 14, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | |
Subsequent Event [Line Items] | ||||||
Dividends per share | $ 0.04 | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.03 | |
Aggregate amount of dividend | $ 1.3 | $ 1.3 | $ 1.2 | |||
Number of stock retired, shares | 516,102 | 128,040 | ||||
Number of stock retired, value | $ 9.5 | $ 2.9 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of common stock purchased | 74,659 | |||||
Number of common shares purchased, value | $ 1.8 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Retirement Plan | |||
Percentage of employee's contribution | 3.00% | ||
Expenses related to contributions to plan | $ 171,000 | $ 164,000 | $ 160,000 |
Schedule of Business Insurance
Schedule of Business Insurance Recoveries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Insurance receivable | $ 191 | $ 1,197 | |
Business interruption | (176) | (484) | |
Net property insurance claims | 596 | (284) | (20) |
Proceeds from business interruption insurance claims | 384 | 100 | |
Proceeds from property insurance claims | 945 | 100 | 20 |
Accounts Receivable [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Insurance receivable | $ 191 | $ 1,197 |
Insurance Recoveries (Details N
Insurance Recoveries (Details Narrative) - USD ($) | 12 Months Ended | 14 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Nov. 30, 2018 | |
Unusual or Infrequent Items, or Both [Abstract] | |||
Net property insurance claims | $ 728,000 | $ 629,000 | $ 0 |
Schedule of Allocation of Fair
Schedule of Allocation of Fair Values Assigned to Assets at Acquisition (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 05, 2018 | Nov. 01, 2018 | Sep. 30, 2018 | May 25, 2018 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 45,686 | $ 53,630 | $ 43,591 | $ 495 | ||
Chicago Club [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Land and building | $ 4,325 | |||||
Inventory | 57 | |||||
Furniture and equipment | 50 | |||||
Noncompete | 100 | |||||
SOB license | 5,252 | |||||
Goodwill | 2,003 | |||||
Deferred tax liability | (1,287) | |||||
Net assets | $ 10,500 | |||||
Pittsburgh Club [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Land and building | $ 5,000 | |||||
Inventory | 23 | |||||
Furniture and equipment | 200 | |||||
Noncompete | 100 | |||||
SOB license | 9,677 | |||||
Net assets | $ 15,000 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Details Narrative) - USD ($) | Aug. 06, 2020 | May 22, 2020 | May 01, 2020 | Apr. 01, 2020 | Nov. 05, 2019 | Jul. 23, 2019 | Mar. 21, 2019 | Jan. 24, 2019 | Nov. 05, 2018 | Nov. 01, 2018 | Sep. 25, 2018 | Sep. 06, 2018 | May 25, 2018 | Apr. 26, 2018 | Apr. 26, 2018 | Dec. 14, 2017 | Dec. 11, 2017 | Oct. 05, 2016 | Jul. 31, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Nov. 30, 2018 | Oct. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2020 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Nov. 02, 2018 | Feb. 15, 2018 |
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Debt instrument, description | the Company paid monthly installments of principal of $250,000, applied to the first note, until the loan-to-value ratio of the Properties, based upon reduced principal balance of the December 2017 Refinancing Loan and the then current value of the Properties, is not greater than 65%. The loan-to-value ratio of the Properties fell below 65% in October 2019, hence, we stopped paying the additional $250,000 monthly. | ||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | 8.00% | 12.00% | 9.00% | 9.00% | 5.25% | |||||||||||||||||||||||||||
Exchange for forgiveness, value | $ 500,000 | ||||||||||||||||||||||||||||||||
Shares received on exchange for forgiveness | 750,000 | ||||||||||||||||||||||||||||||||
Settlement description | Additionally, as part of the settlement, the Company acquired 78.5% of the remaining 80% ownership interest in Drink Robust, bringing its ownership interest to 98.5% with the payment of an outstanding liability to the Drink Robust distributor | ||||||||||||||||||||||||||||||||
Settlement Liabilities, Current | $ 2,200,000 | $ 3,400,000 | |||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 10,500,000 | ||||||||||||||||||||||||||||||||
Impairment of equity | $ 1,550,000 | ||||||||||||||||||||||||||||||||
Long term asset | $ 450,000 | ||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,500,000 | ||||||||||||||||||||||||||||||||
Notes payable | $ 1,740,000 | 1,000,000 | $ 625,000 | $ 6,000,000 | |||||||||||||||||||||||||||||
Purchase of real estate | 825,000 | ||||||||||||||||||||||||||||||||
Payments to other non-real estate business assets | 180,000 | ||||||||||||||||||||||||||||||||
Goodwill | $ 495,000 | $ 43,591,000 | 45,686,000 | 53,630,000 | $ 43,591,000 | ||||||||||||||||||||||||||||
Revenues | 5,000,000 | $ 442,000 | |||||||||||||||||||||||||||||||
Proceeds from properties held for sale | $ 1,500,000 | ||||||||||||||||||||||||||||||||
Acquisition-related costs | $ 37,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | due on May 1, 2020 | May 2019 | |||||||||||||||||||||||||||||||
Business acquisition, description | Noncompete is amortized on a straight-line basis over five years from acquisition date. | ||||||||||||||||||||||||||||||||
Business acquisition disposition description | the Company sold its nightclub in Philadelphia for a total sales price of $1.0 million, payable $375,000 in cash at closing and a $625,000 9% note payable to us over a 10-year period. The note is payable interest-only for twelve months at the conclusion of which time a balloon payment of $250,000 is due, and then the remainder of the principal and interest is payable in 108 equal installments of $5,078 per month until October 2028. The buyer will lease the property from the Company’s real estate subsidiary under the following terms: $36,000 per month lease payments for ten years; renewal option for a succeeding ten years at a minimum of $48,000 per month; lessee has option to purchase the property for $6.0 million during a term beginning November 2023 and expiring in October 2028. | ||||||||||||||||||||||||||||||||
Total sales price | $ 1,000,000 | ||||||||||||||||||||||||||||||||
Acquisition cash paid | 375,000 | ||||||||||||||||||||||||||||||||
Balloon payment | 250,000 | ||||||||||||||||||||||||||||||||
Installment amount | $ 250,000,000,000 | $ 118,817 | $ 11,905 | 5,078 | |||||||||||||||||||||||||||||
Operating lease payments | $ 36,000 | 3,244,000 | |||||||||||||||||||||||||||||||
Operating lease term | 10 years | ||||||||||||||||||||||||||||||||
Operating lease amount | $ 48,000 | $ 4,738,000 | |||||||||||||||||||||||||||||||
Operating lease description | lessee has option to purchase the property for $6.0 million during a term beginning November 2023 and expiring in October 2028. | ||||||||||||||||||||||||||||||||
Payment to acquire property | $ 6,000,000 | ||||||||||||||||||||||||||||||||
Gain on sale transaction | $ 879,000 | ||||||||||||||||||||||||||||||||
Debt principal amount | $ 879,085 | ||||||||||||||||||||||||||||||||
Debt payment description | The note, as modified, still bears interest at 9% and is payable in 108 equal monthly installments of $11,905, including principal and interest, until July 2028. | ||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 176,000 | $ 382,000 | $ 690,000 | ||||||||||||||||||||||||||||||
Gain loss on sale of property | 26,000 | 16,000 | 9,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 160,500 | $ 217,000 | 666,000 | ||||||||||||||||||||||||||||||
Preliminary gain on the sale transaction | 383,000 | ||||||||||||||||||||||||||||||||
First 35 Months [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Notes payable | $ 9,619 | ||||||||||||||||||||||||||||||||
Notes payable, period | 35 months | ||||||||||||||||||||||||||||||||
Bombshells One To Ten [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 1,100,000 | ||||||||||||||||||||||||||||||||
Gain loss on sale of property | 331,000 | ||||||||||||||||||||||||||||||||
Repayments of debt | $ 942,000 | ||||||||||||||||||||||||||||||||
Pittsburgh [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 15,000,000 | ||||||||||||||||||||||||||||||||
Notes payable | 7,500,000 | ||||||||||||||||||||||||||||||||
Revenues | 4,600,000 | ||||||||||||||||||||||||||||||||
Proceeds from short term note payable | 2,000,000 | ||||||||||||||||||||||||||||||||
Acquisition-related costs | $ 134,000 | ||||||||||||||||||||||||||||||||
Business acquisition, description | Noncompete is amortized on a straight-line basis over five years from acquisition date. | ||||||||||||||||||||||||||||||||
Houston and San Antonio [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 868,000 | ||||||||||||||||||||||||||||||||
Gain loss on sale of property | 273,000 | ||||||||||||||||||||||||||||||||
Repayments of debt | $ 945,000 | ||||||||||||||||||||||||||||||||
Dallas [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Debt interest rate | 8.00% | ||||||||||||||||||||||||||||||||
Notes payable | $ 1,150,000 | ||||||||||||||||||||||||||||||||
Proceeds from sale of property | 1,400,000 | ||||||||||||||||||||||||||||||||
Payments to acquire assets | 163,000 | ||||||||||||||||||||||||||||||||
Property taxes | $ 87,000 | ||||||||||||||||||||||||||||||||
Notes payable period description | three-year | ||||||||||||||||||||||||||||||||
Bombshells 249 Location [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 1,400,000 | ||||||||||||||||||||||||||||||||
Gain loss on sale of property | 628,000 | ||||||||||||||||||||||||||||||||
Repayments of debt | $ 980,000 | ||||||||||||||||||||||||||||||||
Lubbock, Texas [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from sale of property | 350,000 | ||||||||||||||||||||||||||||||||
Gain loss on sale of property | 376,000 | ||||||||||||||||||||||||||||||||
Repayments of debt | $ 331,000 | ||||||||||||||||||||||||||||||||
Bombshells Webster Location [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from sale of property | 85,000 | ||||||||||||||||||||||||||||||||
Gain loss on sale of property | $ 156,000 | ||||||||||||||||||||||||||||||||
Bombshells [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Repayments of debt | $ 1,400,000 | ||||||||||||||||||||||||||||||||
Sale of buildings for cash | 1,500,000 | ||||||||||||||||||||||||||||||||
Gain on sale of buildings | $ 583,000 | ||||||||||||||||||||||||||||||||
Bank Lender [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Debt instrument, description | The 10-year note payable has an initial interest rate of 5.95% until after five years when the interest rate is adjusted to the U.S. Treasury rate plus 3.5%, with a 5.95% floor. | ||||||||||||||||||||||||||||||||
Debt interest rate | 5.95% | ||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,550,000 | ||||||||||||||||||||||||||||||||
Proceeds from related party debt | $ 5,000,000 | ||||||||||||||||||||||||||||||||
Installment amount | 11,138 | ||||||||||||||||||||||||||||||||
Employee [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 375,000 | ||||||||||||||||||||||||||||||||
Gain loss on sale of property | $ 20,000 | ||||||||||||||||||||||||||||||||
6-Year Seller Financed Note [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | ||||||||||||||||||||||||||||||||
Proceeds from short term note payable | $ 4,500,000 | ||||||||||||||||||||||||||||||||
2-Year Seller Financed Note [Member] | Pittsburgh [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | ||||||||||||||||||||||||||||||||
10-Year Seller Financed Note [Member] | Pittsburgh [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from short term note payable | $ 5,500,000 | ||||||||||||||||||||||||||||||||
10-Year Seller Financed Note [Member] | Philadelphia [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Debt interest rate | 8.00% | ||||||||||||||||||||||||||||||||
Definitive Agreements [Member]. | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Purchase of real estate | $ 15,000,000 | ||||||||||||||||||||||||||||||||
One Property [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from properties held for sale | $ 675,000 | ||||||||||||||||||||||||||||||||
Gain loss on sale of properties | $ 481,000 | ||||||||||||||||||||||||||||||||
Real Estate Property [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from properties held for sale | $ 2,000,000 | ||||||||||||||||||||||||||||||||
Two Properties [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from properties held for sale | 7,200,000 | ||||||||||||||||||||||||||||||||
Four Real Estate Properties [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from properties held for sale | $ 2,500,000 | ||||||||||||||||||||||||||||||||
TEZ Real Estate [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Payments to acquired business | 1,550,000 | ||||||||||||||||||||||||||||||||
Business acquisition separately recognized additional paid-in capital | $ 759,000 | ||||||||||||||||||||||||||||||||
TEZ Real Estate [Member] | Subsidiary [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 49.00% | ||||||||||||||||||||||||||||||||
Drink Robust Distributor [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Preliminary estimate | $ 450,000 | ||||||||||||||||||||||||||||||||
Business combination, consideration transferred | 250,000 | ||||||||||||||||||||||||||||||||
Drink Robust, Inc. [Member] | |||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||
Discontinued operations, notes receivable | $ 2,000,000 | ||||||||||||||||||||||||||||||||
Debt instrument, description | The note required interest-only monthly payments at a per annum rate of 4% beginning January of 2017 and principal and interest payments due monthly commencing in January 2018 and ending December 2032 | ||||||||||||||||||||||||||||||||
Debt interest rate | 4.00% | ||||||||||||||||||||||||||||||||
Recourse the personal assets | $ 500,000 | ||||||||||||||||||||||||||||||||
Settlement Liabilities, Current | $ 250,000 | $ 250,000 | |||||||||||||||||||||||||||||||
Remaining interest percentage | 1.50% | ||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 100.00% |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | [1] | Sep. 30, 2019 | [2] | Jun. 30, 2019 | [2] | Mar. 31, 2019 | [2] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [3] | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [3] | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||
Revenues | $ 28,786 | $ 14,721 | $ 40,426 | $ 48,394 | $ 45,183 | $ 47,027 | $ 44,826 | $ 44,023 | $ 40,676 | $ 42,634 | $ 41,226 | $ 41,212 | $ 132,327 | $ 181,059 | $ 165,748 | ||||||||||||
Income (loss) from operations | 192 | (4,657) | (2,475) | 9,686 | 2,429 | 9,974 | 11,166 | 11,132 | 699 | 9,492 | 8,231 | 9,140 | 2,746 | 34,701 | 27,562 | ||||||||||||
Net income (loss) attributable to RCIHH shareholders | $ (2,793) | $ (5,474) | $ (3,452) | $ 5,634 | $ 458 | $ 5,638 | $ 6,735 | $ 7,463 | $ (3,506) | $ 5,389 | $ 4,685 | $ 14,311 | $ (6,085) | $ 20,294 | $ 20,879 | ||||||||||||
Earnings (loss) per share Basic and diluted | $ (0.31) | $ (0.60) | $ (0.37) | $ 0.60 | $ 0.05 | $ 0.59 | $ 0.70 | $ 0.77 | $ (0.36) | $ 0.55 | $ 0.48 | $ 1.47 | $ (0.66) | $ 2.10 | $ 2.15 | ||||||||||||
Weighted average number of common shares outstanding, Basic and diluted | 9,124 | 9,125 | 9,225 | 9,322 | 9,616 | 9,620 | 9,679 | 9,713 | 9,719 | 9,719 | 9,719 | 9,719 | 9,199 | 9,657 | 9,719 | ||||||||||||
[1] | Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $ 10.6 8.2 982,000 1.4 1.3 22.0% (28.9)% (20.5)% 36.3% | ||||||||||||||||||||||||||
[2] | Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 6.0 2.9 1.2 1.1 0.3 0.4 0.8 0.1 0.9 8.4 22.3 24.1 (371.7)% | ||||||||||||||||||||||||||
[3] | Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 1.6 5.6 1.6 4.0 8.8 9.7 38,000 827,000 (134.3)% 24.2 25.3 103.8 |
Schedule of Quarterly Financi_2
Schedule of Quarterly Financial Information (Details) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended | 19 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Asset impairment charge | $ 1,400,000 | $ 982,000 | $ 8,200,000 | $ 4,000,000 | $ 1,600,000 | $ 10,600,000 | $ 6,000,000 | $ 5,600,000 | $ 10,600,000 | |||||||
Valuation allowance | $ 1,300,000 | 1,300,000 | $ 1,300,000 | |||||||||||||
Effective Income Tax Rate Reconciliation, Percent | 36.30% | (20.50%) | (28.90%) | 22.00% | (371.70%) | 24.10% | 22.30% | 8.40% | 103.80% | 25.30% | 24.20% | (134.30%) | ||||
Net gain on sale of business and assets | 2,900,000 | |||||||||||||||
Gain on sale of business and assets | $ 400,000 | $ 300,000 | $ 1,100,000 | $ 1,200,000 | 777,000 | 2,966,000 | (2,162,000) | |||||||||
Net gain loss on insurance | 800,000 | |||||||||||||||
Gain (Loss) Related to Litigation Settlement | $ 900,000 | $ 100,000 | $ 1,600,000 | (596,000) | 288,000 | 20,000 | ||||||||||
Deferred Income Tax Expense (Benefit) | $ 8,800,000 | $ (1,268,000) | $ 821,000 | $ (6,775,000) | ||||||||||||
Deferred income tax benefit, gross | $ 9,700,000 | |||||||||||||||
Deferred tax expense | $ 827,000 | $ 38,000 |
Impairment of Assets (Details N
Impairment of Assets (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | 19 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | $ 1,400,000 | $ 982,000 | $ 8,200,000 | $ 4,000,000 | $ 1,600,000 | $ 10,600,000 | $ 6,000,000 | $ 5,600,000 | $ 10,600,000 |
Long-Lived Assets of One Club and One Bombshells [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | 406,000 | 1,600,000 | |||||||
Goodwill Impairment of Two Club Locations [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | 834,000 | ||||||||
S O B License Of Three Clubs [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | $ 3,100,000 | ||||||||
Goodwill of Four Club Reporting Units [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | 1,600,000 | ||||||||
Property and Equipment of Two Clubs [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | 4,200,000 | ||||||||
SOB License of One Club [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | $ 178,000 | ||||||||
Goodwill of Seven Club Reporting Units [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | 7,900,000 | ||||||||
SOB License of Two Clubs [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | 2,300,000 | ||||||||
Property, Plant and Equipment [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | 302,000 | ||||||||
Operating Lease Right-Of-Use Assets [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Impairment of assets | $ 104,000 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [3] | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | ||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Total revenues | $ 28,786 | [1] | $ 14,721 | [1] | $ 40,426 | [1] | $ 48,394 | [1] | $ 45,183 | [2] | $ 47,027 | [2] | $ 44,826 | [2] | $ 44,023 | [2] | $ 40,676 | [3] | $ 42,634 | $ 41,226 | $ 41,212 | $ 132,327 | $ 181,059 | $ 165,748 | |||||||
Income (loss) from operations | 192 | [1] | (4,657) | [1] | (2,475) | [1] | 9,686 | [1] | 2,429 | [2] | 9,974 | [2] | 11,166 | [2] | 11,132 | [2] | 699 | [3] | $ 9,492 | $ 8,231 | $ 9,140 | 2,746 | 34,701 | 27,562 | |||||||
Capital expenditures | 5,736 | 20,708 | 25,263 | ||||||||||||||||||||||||||||
Depreciation and amortization | 8,836 | 9,072 | 7,722 | ||||||||||||||||||||||||||||
Total assets | 360,933 | [4] | $ 361,493 | $ 363,015 | $ 377,292 | 354,756 | [4] | $ 351,997 | $ 351,992 | $ 350,641 | 329,732 | [4] | 360,933 | [4] | 354,756 | [4] | 329,732 | [4] | |||||||||||||
Nightclubs [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Total revenues | 88,373 | 148,606 | 140,060 | ||||||||||||||||||||||||||||
Income (loss) from operations | 13,118 | 50,724 | 43,624 | ||||||||||||||||||||||||||||
Capital expenditures | 3,477 | 6,645 | 2,052 | ||||||||||||||||||||||||||||
Depreciation and amortization | 5,799 | 6,401 | 5,404 | ||||||||||||||||||||||||||||
Total assets | [4] | 277,960 | 274,071 | 252,335 | 277,960 | 274,071 | 252,335 | ||||||||||||||||||||||||
Bombshells [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Total revenues | 43,215 | 30,828 | 24,094 | ||||||||||||||||||||||||||||
Income (loss) from operations | 9,245 | 2,307 | 2,040 | ||||||||||||||||||||||||||||
Capital expenditures | 2,114 | 10,457 | 22,522 | ||||||||||||||||||||||||||||
Depreciation and amortization | 1,785 | 1,374 | 1,265 | ||||||||||||||||||||||||||||
Total assets | [4] | 48,991 | 44,144 | 39,560 | 48,991 | 44,144 | 39,560 | ||||||||||||||||||||||||
Other [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Total revenues | 739 | 1,625 | 1,594 | ||||||||||||||||||||||||||||
Income (loss) from operations | (684) | (309) | (252) | ||||||||||||||||||||||||||||
Capital expenditures | 27 | 33 | |||||||||||||||||||||||||||||
Depreciation and amortization | 415 | 416 | 179 | ||||||||||||||||||||||||||||
Total assets | [4] | 1,269 | 1,773 | 1,978 | 1,269 | 1,773 | 1,978 | ||||||||||||||||||||||||
General Corporate [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Income (loss) from operations | (18,933) | (18,021) | (17,850) | ||||||||||||||||||||||||||||
Capital expenditures | 145 | 3,579 | 656 | ||||||||||||||||||||||||||||
Depreciation and amortization | 837 | 881 | 874 | ||||||||||||||||||||||||||||
Total assets | [4] | $ 32,713 | $ 34,768 | $ 35,859 | $ 32,713 | $ 34,768 | $ 35,859 | ||||||||||||||||||||||||
[1] | Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $ 10.6 8.2 982,000 1.4 1.3 22.0% (28.9)% (20.5)% 36.3% | ||||||||||||||||||||||||||||||
[2] | Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 6.0 2.9 1.2 1.1 0.3 0.4 0.8 0.1 0.9 8.4 22.3 24.1 (371.7)% | ||||||||||||||||||||||||||||||
[3] | Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 1.6 5.6 1.6 4.0 8.8 9.7 38,000 827,000 (134.3)% 24.2 25.3 103.8 | ||||||||||||||||||||||||||||||
[4] | See Note 4 for a discussion of revision of prior year immaterial misstatement. |
Segment Information (Details Na
Segment Information (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | [1] | Sep. 30, 2019 | [2] | Jun. 30, 2019 | [2] | Mar. 31, 2019 | [2] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [3] | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [3] | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Revenues | $ 28,786,000 | $ 14,721,000 | $ 40,426,000 | $ 48,394,000 | $ 45,183,000 | $ 47,027,000 | $ 44,826,000 | $ 44,023,000 | $ 40,676,000 | $ 42,634,000 | $ 41,226,000 | $ 41,212,000 | $ 132,327,000 | $ 181,059,000 | $ 165,748,000 | ||||||||||||
Nightclubs [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Revenues | 88,373,000 | 148,606,000 | 140,060,000 | ||||||||||||||||||||||||
Nightclubs [Member] | Intercompany Rental Revenue [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Revenues | 11,100,000 | 10,000,000 | 9,000,000 | ||||||||||||||||||||||||
Other Segment [Member] | Intercompany Sales [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Revenues | $ 70 | $ 140 | $ 26 | ||||||||||||||||||||||||
[1] | Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $ 10.6 8.2 982,000 1.4 1.3 22.0% (28.9)% (20.5)% 36.3% | ||||||||||||||||||||||||||
[2] | Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 6.0 2.9 1.2 1.1 0.3 0.4 0.8 0.1 0.9 8.4 22.3 24.1 (371.7)% | ||||||||||||||||||||||||||
[3] | Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $ 1.6 5.6 1.6 4.0 8.8 9.7 38,000 827,000 (134.3)% 24.2 25.3 103.8 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details Narrative) - NightClub [Member] | Sep. 30, 2020 | Sep. 30, 2018 |
Philadelphia [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Noncontrolling ownership interest | 51.00% | |
New York City [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Noncontrolling ownership interest | 51.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Nov. 01, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Related Party Transaction [Line Items] | ||||
Indebtedness, net of debt discount and issuance costs | $ 83,800,000 | $ 86,800,000 | ||
Due from related parties | $ 2,350,000 | |||
Ed Anakar And Nourdean Anakar [Member] | ||||
Related Party Transaction [Line Items] | ||||
Borrowings from related party | 500,000 | |||
Allen Chhay And Bradley Chhay [Member] | ||||
Related Party Transaction [Line Items] | ||||
Borrowings from related party | $ 100,000 | |||
Sherwood Forest Creations, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 59,000 | 134,000 | $ 321,000 | |
Nottingham Creations and Sherwood Forest Creations LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | 0 | 6,588 | ||
TW Mechanical LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 62,000 | 47,000 | 7,000 | |
Due from related parties | 5,700 | 0 | ||
TW Mechanical LLC [Member] | Third-Party General Contractor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 19,000 | $ 452,000 | $ 120,000 |
Schedule of Future Maturities o
Schedule of Future Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Lessor, Lease, Description [Line Items] | |
October 2020 - September 2021 | $ 3,221 |
October 2021 - September 2022 | 3,233 |
October 2022 - September 2023 | 3,065 |
October 2023 - September 2024 | 3,058 |
October 2024 - September 2025 | 3,124 |
Thereafter | 23,712 |
Future maturities of lease liabilities | 39,413 |
Principal Payments [Member] | |
Lessor, Lease, Description [Line Items] | |
October 2020 - September 2021 | 1,628 |
October 2021 - September 2022 | 1,742 |
October 2022 - September 2023 | 1,678 |
October 2023 - September 2024 | 1,775 |
October 2024 - September 2025 | 1,953 |
Thereafter | 18,291 |
Future maturities of lease liabilities | 27,067 |
Interest Payments [Member] | |
Lessor, Lease, Description [Line Items] | |
October 2020 - September 2021 | 1,593 |
October 2021 - September 2022 | 1,491 |
October 2022 - September 2023 | 1,387 |
October 2023 - September 2024 | 1,283 |
October 2024 - September 2025 | 1,171 |
Thereafter | 5,421 |
Future maturities of lease liabilities | $ 12,346 |
Schedule of Lease Expense (Deta
Schedule of Lease Expense (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2018 | Sep. 30, 2020 | |
Leases | ||
Operating lease expense – fixed payments | $ 36,000 | $ 3,244,000 |
Variable lease expense | 381,000 | |
Short-term equipment and other lease expense (includes $315 recorded in advertising and marketing, and $372 recorded in repairs and maintenance; see Note 6) | 1,122,000 | |
Sublease income | (9,000) | |
Total lease expense, net | $ 48,000 | 4,738,000 |
Operating cash outflows from operating leases | $ 4,562,000 | |
Weighted average remaining lease term | 13 years | |
Weighted average discount rate | 6.10% |
Schedule of Lease Expense (De_2
Schedule of Lease Expense (Details) (Parenthetical) - Equipment [Member] $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Lessor, Lease, Description [Line Items] | |
Advertising and marketing | $ 315 |
Repairs and maintenance | $ 372 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Lease expense | $ 48,000 | $ 4,738,000 | ||
Lease expense under ASC 840 | $ 3,900,000 | $ 3,800,000 | ||
Chief Executive Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Lease expense | $ 19,500 | $ 78,000 | $ 55,250 | |
Lease expiration date | Dec. 31, 2019 |
Schedule of Valuation and Qua_3
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Allowance For Doubtful Accounts Receivable [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | $ 101 | |||
Charged to costs and expenses | [1] | 347 | 241 | 106 |
Deductions | [2] | (187) | (140) | (106) |
Balance at end of year | 261 | 101 | ||
SEC Schedule, 12-09, Allowance, Notes Receivable [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | ||||
Charged to costs and expenses | [1] | 602 | ||
Deductions | [2] | (420) | ||
Balance at end of year | 182 | |||
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | [3] | |||
Charged to costs and expenses | [1],[3] | 1,273 | ||
Deductions | [2],[3] | |||
Balance at end of year | [3] | $ 1,273 | ||
[1] | Charged to bad debts expense (under other selling, general and administrative expenses) in the consolidated statements of operations. | |||
[2] | Written off against gross receivable and allowance. | |||
[3] | Included in deferred tax liability, net in the consolidated balance sheets. |