Cover
Cover - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 10, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
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 | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 526,136,029 | ||
Entity Common Stock, Shares Outstanding | 9,499,910 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets | ||
Cash and cash equivalents | $ 35,686 | $ 15,605 |
Accounts receivable, net | 7,570 | 6,767 |
Current portion of notes receivable | 220 | 201 |
Inventories | 2,659 | 2,372 |
Prepaid expenses and other current assets | 1,928 | 6,488 |
Assets held for sale | 4,887 | |
Total current assets | 52,950 | 31,433 |
Property and equipment, net | 175,952 | 181,383 |
Operating lease right-of-use assets, net | 24,308 | 25,546 |
Notes receivable, net of current portion | 2,839 | 2,908 |
Goodwill | 39,379 | 45,686 |
Intangibles, net | 67,824 | 73,077 |
Other assets | 1,367 | 900 |
Total assets | 364,619 | 360,933 |
Current liabilities | ||
Accounts payable | 4,408 | 4,799 |
Accrued liabilities | 10,403 | 14,573 |
Current portion of long-term debt | 6,434 | 16,304 |
Current portion of operating lease liabilities | 1,780 | 1,628 |
Total current liabilities | 23,025 | 37,304 |
Deferred tax liability, net | 19,137 | 20,390 |
Debt, net of current portion and debt discount and issuance costs | 118,734 | 125,131 |
Operating lease liabilities, net of current portion | 24,150 | 25,439 |
Other long-term liabilities | 350 | 362 |
Total liabilities | 185,396 | 208,626 |
Commitments and contingencies (Note 11) | ||
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; 9,000 shares and 9,075 shares issued and outstanding as of September 30, 2021 and 2020, respectively | 90 | 91 |
Additional paid-in capital | 50,040 | 51,833 |
Retained earnings | 129,693 | 100,797 |
Total RCIHH stockholders’ equity | 179,823 | 152,721 |
Noncontrolling interests | (600) | (414) |
Total equity | 179,223 | 152,307 |
Total liabilities and equity | $ 364,619 | $ 360,933 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000 | 1,000 |
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 | 20,000 |
Common stock, shares issued | 9,000 | 9,075 |
Common stock, shares outstanding | 9,000 | 9,075 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | |||
Total revenues | $ 195,258 | $ 132,327 | $ 181,059 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 30,051 | 19,435 | 24,937 |
Salaries and wages | 50,627 | 39,070 | 49,833 |
Selling, general and administrative | 54,608 | 51,692 | 59,896 |
Depreciation and amortization | 8,238 | 8,836 | 9,072 |
Other charges, net | 13,186 | 10,548 | 2,620 |
Total operating expenses | 156,710 | 129,581 | 146,358 |
Income from operations | 38,548 | 2,746 | 34,701 |
Other income (expenses) | |||
Interest expense | (9,992) | (9,811) | (10,209) |
Interest income | 253 | 324 | 309 |
Non-operating gains (losses), net | 5,330 | (64) | (612) |
Income (loss) before income taxes | 34,139 | (6,805) | 24,189 |
Income tax expense (benefit) | 3,989 | (493) | 3,744 |
Net income (loss) | 30,150 | (6,312) | 20,445 |
Net loss (income) attributable to noncontrolling interests | 186 | 227 | (151) |
Net income (loss) attributable to RCIHH common stockholders | $ 30,336 | $ (6,085) | $ 20,294 |
Earnings (loss) per share | |||
Basic and diluted | $ 3.37 | $ (0.66) | $ 2.10 |
Weighted average number of common shares outstanding | |||
Basic and diluted | 9,005 | 9,199 | 9,657 |
Dividends per share | $ 0.16 | $ 0.14 | $ 0.13 |
Alcoholic Beverages [Member] | |||
Revenues | |||
Total revenues | $ 86,685 | $ 59,080 | $ 75,140 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 15,883 | 11,097 | 15,303 |
Food And Merchandise [Member] | |||
Revenues | |||
Total revenues | 41,111 | 24,460 | 25,830 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 13,794 | 8,071 | 9,056 |
Service [Member] | |||
Revenues | |||
Total revenues | 55,461 | 41,162 | 68,055 |
Other [Member] | |||
Revenues | |||
Total revenues | 12,001 | 7,625 | 12,034 |
Service And Other [Member] | |||
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | $ 374 | $ 267 | $ 578 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | |||
Net income (loss) | $ 30,150 | $ (6,312) | $ 20,445 |
Amount reclassified from accumulated other comprehensive income | (220) | ||
Comprehensive income (loss) | 30,150 | (6,312) | 20,225 |
Comprehensive loss (income) attributable to noncontrolling interests | 186 | 227 | (151) |
Comprehensive income (loss) attributable to RCI Hospitality Holdings, Inc. | $ 30,336 | $ (6,085) | $ 20,074 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ 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, 2018 | $ 97 | $ 64,212 | $ 88,906 | $ 220 | $ (103) | $ 153,332 | |
Beginning balance, shares at Sep. 30, 2018 | 9,719 | ||||||
Reclassification upon adoption of ASU 2016-01 | 220 | (220) | |||||
Purchase of treasury shares | $ (2,901) | (2,901) | |||||
Purchase of treasury shares, shares | (128) | ||||||
Canceled treasury shares | $ (1) | (2,900) | $ 2,901 | ||||
Canceled treasury shares, shares | (128) | 128 | |||||
Payment of dividends | (1,252) | (1,252) | |||||
Payments to noncontrolling interests | (70) | (70) | |||||
Divestiture in other entities | (134) | (134) | |||||
Net income (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 | ||||||
Purchase of treasury shares | $ (9,484) | (9,484) | |||||
Purchase of treasury shares, shares | (516) | ||||||
Canceled treasury shares | $ (5) | (9,479) | $ 9,484 | ||||
Canceled treasury shares, shares | (516) | 516 | |||||
Payment of dividends | (1,286) | (1,286) | |||||
Payments to noncontrolling interests | (31) | (31) | |||||
Net income (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 | ||||||
Purchase of treasury shares | $ (1,794) | (1,794) | |||||
Purchase of treasury shares, shares | (75) | ||||||
Canceled treasury shares | $ (1) | (1,793) | $ 1,794 | ||||
Canceled treasury shares, shares | (75) | 75 | |||||
Payment of dividends | (1,440) | (1,440) | |||||
Net income (loss) | 30,336 | (186) | 30,150 | ||||
Ending balance, value at Sep. 30, 2021 | $ 90 | $ 50,040 | $ 129,693 | $ (600) | $ 179,223 | ||
Ending balance, shares at Sep. 30, 2021 | 9,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 30,150 | $ (6,312) | $ 20,445 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 8,238 | 8,836 | 9,072 |
Deferred tax expense (benefit) | (1,253) | (1,268) | 821 |
Gain on sale of businesses and assets | (714) | (777) | (2,966) |
Impairment of assets | 13,612 | 10,615 | 6,040 |
Amortization and writeoff of debt discount and issuance costs | 311 | 236 | 334 |
Doubtful accounts expense (reversal) on notes receivable | (80) | 602 | |
Unrealized loss on equity securities | 84 | 64 | 612 |
Loss (gain) on insurance | (1,337) | 596 | (288) |
Noncash lease expense | 1,729 | 1,660 | |
Deferred rent expense | 282 | ||
Gain on debt extinguishment | (5,298) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (769) | (294) | 457 |
Inventories | (287) | 226 | (216) |
Prepaid expenses, other current assets and other assets | 4,120 | 1,633 | (681) |
Accounts payable and accrued liabilities | (6,515) | (185) | 3,262 |
Net cash provided by operating activities | 41,991 | 15,632 | 37,174 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of businesses and assets | 5,415 | 2,221 | 7,223 |
Proceeds from notes receivable | 130 | 1,576 | 158 |
Proceeds from insurance | 1,152 | 945 | 100 |
Issuance of notes receivable | (420) | ||
Payments for property and equipment and intangible assets | (13,511) | (5,736) | (20,708) |
Acquisition of businesses, net of cash acquired | (13,500) | ||
Net cash used in investing activities | (6,814) | (994) | (27,147) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 38,490 | 6,503 | 13,511 |
Payments on long-term debt | (49,178) | (8,832) | (22,924) |
Purchase of treasury stock | (1,794) | (9,484) | (2,901) |
Payment of dividends | (1,440) | (1,286) | (1,252) |
Payment of loan origination costs | (1,174) | (20) | |
Distribution to noncontrolling interests | (31) | (70) | |
Net cash used in financing activities | (15,096) | (13,130) | (13,656) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 20,081 | 1,508 | (3,629) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 15,605 | 14,097 | 17,726 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 35,686 | 15,605 | 14,097 |
CASH PAID DURING YEAR FOR: | |||
Interest paid, net of amounts capitalized | 10,362 | 8,695 | 9,797 |
Income taxes paid (net of refunds of $2,201, $153, and $42, in 2021, 2020, and 2019, respectively) | 5,389 | 2,200 | 3,686 |
Non-cash investing and financing transactions: | |||
Debt incurred with seller in connection with acquisition of businesses | 12,000 | ||
Notes receivable received as proceeds from sale of assets | 1,775 | ||
Accounts receivable converted to notes receivable | 122 | ||
Refinanced long-term debt | 62,832 | 11,292 | 400 |
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 | ||
Adjustment to operating lease right-of-use assets and operating lease liabilities related to renewed leases | 491 | ||
Unpaid liabilities on capital expenditures | $ 830 | $ 29 | $ 476 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | |||
Income tax refunds | $ 2,201 | $ 153 | $ 42 |
Nature of Business
Nature of Business | 12 Months Ended |
Sep. 30, 2021 | |
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, Tomball, Katy, Pearland, Odessa, Lubbock, Longview, Tye, Aledo, Round Rock, 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. In relation to acquisitions that closed in October and November 2021, we now have club locations in Denver, Colorado; Louisville, Kentucky; Raleigh, North Carolina; Portland, Maine; Indianapolis, Indiana; Sauget, Illinois; and Newburgh, New York. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
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 2021, 2020, and 2019 are for fiscal years ended September 30, 2021, 2020, and 2019, 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 $ 382,000 261,000 102,000 182,000 Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at the lower of cost (on a first-in, first-out (“FIFO”) basis), or 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 0 156,000 597,000 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 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, 2021, we identified seven reporting units that were impaired and recognized a goodwill impairment loss totaling $ 6.3 7.9 million. See related discussion in Note 3. For the year ended September 30, 2019, we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 1.6 million. 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 $ 5.3 million in 2021 related to three clubs, $ 2.3 million in 2020 related to two clubs (see Note 3), and $ 178,000 in 2019 related to one club, which are included in other charges, net in the consolidated statements of operations. 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 2021, the Company impaired five clubs (including one later reclassified as held for sale) for a total of $ 2.0 million ; during fiscal 2020, the Company impaired one club and one Bombshells unit for a total of $ 302,000 ; and during fiscal 2019, the Company impaired two clubs for a total of $ 4.2 million. The Company also impaired one club in fiscal of 2020 for operating lease right-of-use assets amounting to $ 104,000 . See Notes 6 and 19. 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 Revenue from initial franchise and area development fees are recognized as the performance obligations are satisfied over the term of the franchise agreement. Franchise royalties and advertising contributions, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Refer to Notes 4 and 19 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 5. 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 50 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. Paycheck Protection Program The Company’s policy is to account for the Paycheck Protection Program (“PPP”) loans as debt (see Note 9). The Company will continue to record the loans 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). During the years ended September 30, 2021, 2020, and 2019, the Company did not have any 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, 2021 and 2020, the Company has no stock options outstanding, since 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 less than $ 1,000 and approximately $ 84,000 respectively as of September 30, 2021 and 2020. 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, 2021, 2020, and 2019. 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 September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable Inputs Description 2021 (Level 1) (Level 2) (Level 3) Property and equipment $ 2,044 $ $ - $ 2,044 Indefinite-lived intangibles 2,008 - - 2,008 Goodwill 2,096 - - 2,096 Operating lease right-of-use assets* 491 - - 491 Operating lease liabilities* (491 ) - - (491 ) Asset held for sale 3,007 - 3,007 - * Measured at the lease modification dates. Fair Value at Reporting Date Using September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable 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 - - ** M easured at October 1, 2019, upon the adoption of ASC 842. 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 2021 2020 2019 Goodwill $ (6,307 ) $ (7,944 ) $ (1,638 ) Property and equipment, net (including held for sale) (2,202 ) (302 ) (4,224 ) Indefinite-lived intangibles (5,296 ) (2,265 ) (178 ) Operating lease right-of-use assets - (104 ) - Other assets (equity securities) (84 ) (64 ) (612 ) The significant unobservable inputs used in our level 3 fair value measurements are as follows: Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement Assets Valuation Techniques Unobservable Input Range (Weighted Average) Property and equipment Discounted cash flow EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 Goodwill Discounted cash flow EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 SOB licenses Multiperiod excess earnings EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 Contributory asset charges rate 1.4 8.0 4 Tradename Relief-from-royalty method Revenue growth rate 0 2.5 2.5 Terminal multiple 8 Weighted average cost of capital 15 15 Operating lease right-of-use assets Discounted cash flow EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 Reclassification Certain reclassifications of cost of goods sold components with immaterial amounts have been made to prior year’s financial statements to conform to the current year financial statement presentation. There is no impact in total cost of goods sold, results of operations, and cash flows in all periods presented. Impact of Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Ongoing Impact of COVID-19 Pand
Ongoing Impact of COVID-19 Pandemic | 12 Months Ended |
Sep. 30, 2021 | |
Ongoing Impact Of Covid-19 Pandemic | |
Ongoing Impact of COVID-19 Pandemic | 3. Ongoing Impact of COVID-19 Pandemic Since the U.S. declaration of COVID-19 as a pandemic in March 2020, we have had a major disruption in our business operations that threatened to significantly impact our cash flow. 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. To adapt to the situation, we took significant steps to augment an anticipated decline in operating cash flows, including negotiating deferment of some of our debts, reducing the number of our employees and related payroll costs where necessary, and deferring or modifying certain fixed and variable monthly expenses, among others. The temporary closure of our clubs and restaurants caused by the COVID-19 pandemic has presented operational challenges. Our strategy is to open locations and operate in accordance with local and state guidelines. We believe that we can borrow capital if needed but currently we do not have unused credit facilities so 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. 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 9 and 10. 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. Closures and operating restrictions, 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. We continue to adhere to state and local government mandates regarding the pandemic and, since March 2020, have closed and reopened a number of our locations depending on changing government mandates, including operating hour and limited occupancy restrictions, where applicable. 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 interim and annual periods since the pandemic emerged, we determined that during the year ended 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 $ 104,00 0 in operating lease right-of-use assets, with an additional $ 13.6 million of impairment recognized during the year ended September 30, 2021 comprised of $ 6.3 5.3 2.0 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Revenues
Revenues | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 4. Revenues Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 17), are shown below (in thousands). Schedule of Disaggregation of Segment Revenues Fiscal 2021 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 54,305 $ 32,380 $ - $ 86,685 Sales of food and merchandise 17,221 23,890 - 41,111 Service revenues 55,146 315 - 55,461 Other revenues 10,676 36 1,289 12,001 $ 137,348 $ 56,621 $ 1,289 $ 195,258 Recognized at a point in time $ 135,799 $ 56,617 $ 1,284 $ 193,700 Recognized over time 1,549 4 5 1,558 $ 137,348 $ 56,621 $ 1,289 $ 195,258 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 * Lease revenue (included in Other Revenues) is covered by ASC 842 in fiscal 2021 and 2020, and ASC 840 in fiscal 2019. All other revenues are covered by ASC Topic 606. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 4. 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 (in thousands): Schedule of Reconciliation of Contract Liabilities with Customers Balance at September 30, 2019 Consideration Received Recognized in Revenue Balance at September 30, 2020 Consideration Received Recognized in Revenue Balance at September 30, 2021 Ad revenue $ 76 $ 538 $ (522 ) $ 92 $ 593 $ (601 ) $ 84 Expo revenue - 211 - 211 393 (453 ) 151 Other (including franchise fees, see below) 7 40 (14 ) 33 94 (8 ) 119 $ 83 $ 789 $ (536 ) $ 336 $ 1,080 $ (1,062 ) $ 354 Contract liabilities with customers are included in accrued liabilities as unearned revenues in our consolidated balance sheets (see also Note 5), while the revenues associated with these contract liabilities are included in other revenues in our consolidated statements of operations. On December 22, 2020, the Company signed a franchise development agreement with a group of private investors to open three Bombshells locations in San Antonio, Texas over a period of five years, and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, all in Texas. Upon execution of the agreement, the Company collected $ 75,000 in development fees representing 100 % of the initial franchise fee of the first restaurant and 50 % of the initial franchise fee of the second restaurant. |
Selected Account Information
Selected Account Information | 12 Months Ended |
Sep. 30, 2021 | |
Selected Account Information | |
Selected Account Information | 5. Selected Account Information The components of accounts receivable, net are as follows (in thousands): Schedule of Accounts Receivable 2021 2020 September 30, 2021 2020 Credit card receivables $ 1,447 $ 880 Income tax refundable 4,472 4,325 Insurance receivable 185 191 ATM-in-transit 277 160 Other (net of allowance for doubtful accounts of $ 382 261 1,189 1,211 Total accounts receivable, net $ 7,570 $ 6,767 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 % to 9 % per annum and having original terms ranging from 1 to 20 years. The components of prepaid expenses and other current assets are as follows (in thousands): Schedule of Components of Prepaid Expenses and Other Current Assets 2021 2020 September 30, 2021 2020 Prepaid insurance $ 277 $ 4,884 Prepaid legal 112 735 Prepaid taxes and licenses 380 428 Prepaid rent 309 37 Other 850 404 Total prepaid expenses and other current assets $ 1,928 $ 6,488 The components of accrued liabilities are as follows (in thousands): Schedule of Accrued Liabilities 2021 2020 September 30, 2021 2020 Insurance $ 54 $ 4,405 Payroll and related costs 3,220 2,419 Property taxes 2,178 2,003 Sales and liquor taxes 2,261 2,613 Interest 145 1,390 Patron tax 452 309 Lawsuit settlement 378 100 Unearned revenues 354 336 Other 1,361 998 Accrued liabilities $ 10,403 $ 14,573 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 5. Selected Account Information - continued The components of selling, general and administrative expenses are as follows (in thousands): Schedule of Selling, General and Administrative Expenses 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Taxes and permits $ 8,701 $ 8,071 $ 10,779 Advertising and marketing 6,676 5,367 8,392 Supplies and services 6,190 4,711 5,911 Insurance 5,676 5,777 5,429 Lease 3,942 4,060 3,896 Legal 3,997 4,725 5,180 Utilities 3,366 2,945 3,165 Charge cards fees 3,376 2,382 3,803 Security 3,892 2,582 2,973 Accounting and professional fees 2,031 3,463 2,815 Repairs and maintenance 2,767 2,289 2,980 Other 3,994 5,320 4,573 Selling, general and administrative expenses $ 54,608 $ 51,692 $ 59,896 The components of other charges, net are as follows (in thousands): Schedule of Components of Other Charges, Net 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Impairment of assets $ 13,612 $ 10,615 $ 6,040 Settlement of lawsuits 1,349 174 225 Gain on sale of businesses and assets (522 ) (661 ) (2,877 ) Loss (gain) on insurance (1,253 ) 420 (768 ) Other charges $ 13,186 $ 10,548 $ 2,620 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following (in thousands): Schedule of Property, Plant and Equipment September 30, 2021 2020 Buildings and land $ 162,217 $ 163,938 Equipment 38,046 37,000 Leasehold improvements 28,681 29,776 Furniture 10,207 9,614 Total property and equipment 239,151 240,328 Less accumulated depreciation (63,199 ) (58,945 ) Property and equipment, net $ 175,952 $ 181,383 Included in buildings and leasehold improvements above are construction-in-progress amounting to $ 3.4 million and $ 20,000 as of September 30, 2021 and 2020, respectively, which are mostly related to Bombshells projects. Depreciation expense was approximately $ 8.0 million, $ 8.2 million, and $ 8.4 million for fiscal years 2021, 2020, and 2019, respectively. Impairment loss for property and equipment, including those later reclassified to assets held for sale, was $ 2.0 million, $ 302,000 , and $ 4.2 million for fiscal 2021, 2020, and 2019, respectively. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Sep. 30, 2021 | |
Assets Held For Sale | |
Assets Held for Sale | 7. Assets Held for Sale As of September 30, 2020, the Company had no properties classified as held for sale. During fiscal 2021, the Company classified as held-for-sale three real estate properties with an aggregate carrying value of $ 8.6 7.2 million. In May 2021, the Company sold one property with a carrying value of $ 2.3 million for $ 3.1 million (see Note 15). 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. As of September 30, 2021, liabilities associated with held-for-sale assets amounted to $ 1.1 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following (in thousands): Schedule of Goodwill and Other Intangible Assets 2021 2020 September 30, 2021 2020 Indefinite useful lives: Goodwill $ 39,379 $ 45,686 Licenses 65,186 70,332 Tradename and domain name 2,238 2,215 Indefinite Intangible Assets, Net, Total 106,803 118,233 Amortization Period Definite useful lives: Discounted leases 18 6 86 93 Non-compete agreements 5 182 362 Software 5 132 23 Distribution agreement 3 - 52 400 530 Total goodwill and other intangible assets $ 107,203 $ 118,763 Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill 2021 2020 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 530 $ 72,547 $ 45,686 $ 1,139 $ 74,812 $ 53,630 Acquisitions 128 173 - - - - Impairment - (5,296 ) (6,307 ) - (2,265 ) (7,944 ) Amortization (258 ) - - (609 ) - - Ending balance $ 400 $ 67,424 $ 39,379 $ 530 $ 72,547 $ 45,686 As of September 30, 2021 and 2020, the accumulated impairment balance of indefinite-lived intangibles was $ 13.7 million and $ 8.4 million, respectively, while the accumulated impairment balance of goodwill was $ 20.6 million and $ 14.3 million, respectively. Future amortization expense related to definite-lived intangible assets that are subject to amortization at September 30, 2021 is: 2022 - $ 138,000 ; 2023 - $ 60,000 ; 2024 - $ 11,000 ; 2025 - $ 8,000 ; 2026 - $ 7,000 ; and thereafter - $ 176,000 . Indefinite-lived intangible assets consist of sexually oriented business licenses and tradenames, 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, 2021, the Company recognized a $ 5.3 6.3 2.3 million impairment related to two clubs’ SOB licenses and a $ 7.9 million impairment related to the goodwill of seven reporting units (see Note 3). During the fiscal year ended September 30, 2019, the Company recognized a $ 178,000 impairment related to one club’s SOB license and a $ 1.6 million impairment related to the goodwill of four reporting units. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Debt
Debt | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Debt consisted of the following (in thousands): Schedule of Long-term Debt September 30, 2021 2020 $ 785 $ 886 Notes payable at 5.5 January 2023 (d)(1) $ 785 $ 886 Non-interest-bearing debts to State of Texas, mature March 2022 and May 2022 9.6 (d)(2) 813 2,177 Note payable at 5.75 December 2027 *(a)(6ii)(7) - 9,715 Note payable at 5.95 December 2027 *(a)(6iii)(7) - 5,787 Note payable at 12 February 2030 (d)(3)(25) - 5,031 Notes payable at 12 November 2021 (d)(4)(26) - 1,940 Note payable at 8 % October 2027 (b)(5)(23) 3,025 3,025 Note payable at 8 May 2029 (b)(5) 11,549 12,599 Note payable at 5.75 December 2027 *(a)(6i)(7)(8)(9) - 49,830 Note payable at 5.99 September 2033 (c) (10) 6,089 6,395 Note payable at 5 August 2029 *(a)(12) - 2,165 Note payable at prime plus 0.5 5.5 September 2035 *(a)(13) - 2,099 Note payable initially at prime plus 0.5 5.5 September 2030 *(a)(13) - 2,861 Note payable at 8 May 2021 (a)(14) - 582 Note payable at 5.95 August 2039 *(a)(11) - 6,979 Note payable at 12 February 2030 (d)(15)(24) - 3,875 Note payable at 9 September 2028 (a)(17) 1,063 1,167 Note payable at 5.95 September 2028 *(a)(16) - 1,489 Note payable at 6 February 2040 *(a)(22) - 4,066 Note payable at 5.49 March 2039 (c)(21) 2,075 2,125 Note payable at 7 November 2024 (b)(19) - 3,319 Note payable at 7 February 2021 (b)(20) - 2,000 Notes payable at 12 November 2021 (d)(18) - 2,350 Note payable at 8 November 2028 (b)(20) - 4,790 Note payable at 3.99 January 2041 *(a)(28) 2,127 - Note payable at 5.25 September 2031 *(a)(29) 99,146 - Paycheck Protection Program loans at 1 May 2022 (d)(27) 124 5,422 Total debt 126,796 142,674 Less unamortized debt discount and issuance costs (1,628 ) (1,239 ) Less current portion (6,434 ) (16,304 ) Total long-term portion of debt, net $ 118,734 $ 125,131 * These commercial bank debts are guaranteed by the Company’s CEO. See Note 18. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 9. Debt - continued Following is a summary of long-term debt at September 30 (in thousands): Schedule of Long-term Debt Instruments 2021 2020 (a) Secured by real estate $ 102,336 $ 86,740 (b) Secured by stock in subsidiary 14,574 25,733 (c) Secured by other assets 8,164 8,520 (d) Unsecured 1,722 21,681 $ 126,796 $ 142,674 (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 The notes are payable over eleven years 12,256 5.5 2.5 6.5 eleven years 53,110 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 $ 10.0 119,000 10.0 9.6 7.2 687,815 195,815 60 8,200 390,000 9.6 5 (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 was partially paid in relation to the first note of the December 2017 Refinancing Loan, as discussed below. Also refer to the February 20, 2020 loan restructuring below. This note was paid off entirely on September 30, 2021. (4) On May 1, 2017, the Company raised $ 5.4 12 May 1, 2020 2.0 500,000 2.0 4.0 12 three years 500,000 1.35 9 10 17,101 400,000 200,000 (5) On May 8, 2017, in relation to the Scarlett’s acquisition (see Note 15), 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 has amended the $ 5.0 million short-term note payable several times, which has a remaining balance of $ 3.0 October 1, 2027 and the interest rate is 8 % for its remaining term. Refer to December 2019 amendment below. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 9. 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 % to 12 % covering 43 parcels of real properties the Company previously acquired (“Properties”). The December 2017 Refinancing Loan consisted of three promissory notes: i) The first note amounted to $ 62.5 million with a term of 10 years at a 5.75 % fixed interest rate for the first five years , then repriced one time at the then current U.S. Treasury rate plus 3.5 %, with a floor rate of 5.75 %, and payable in monthly installments of $ 442,058 , based upon a 20 -year amortization period, with the balance payable at maturity; ii) The second note amounted 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 amounted to $ 8.1 million with a term of 10 years at a 5.95 % fixed interest rate until August 2021 , after which to be repriced at 5.75 % until the fifth anniversary of this note, and then to be repriced again at the then interest of the first note. This note was payable $ 100,062 monthly for principal and interest until August 2021, based upon a 20 -year amortization period, after which the monthly payment for principal and interest is adjusted accordingly based on the repricing, with the balance payable at maturity. (7) In addition to the monthly principal and interest payments as provided above, the Company paid monthly installments of principal of $ 250,000 The December 2017 Refinancing Loan eliminated balloon payments of the Repaid Notes worth $ 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 were certain financial covenants with which the Company must be in compliance related to this financing. All three notes in the preceding paragraph were refinanced as part of the September 2021 Refinancing Note (see below). RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 9. Debt - continued (8) In connection with the Repaid Notes, we wrote off $ 279,000 612,500 764,000 612,500 543,000 (9) Included in the $ 62.5 4.6 (10) On December 7, 2017, the Company borrowed $ 7.1 5.99 3.4 2.0 15 59,869 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 bore 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 was payable interest-only during the first 18 months, after which monthly payments of principal and interest were to be made based on a 20 -year amortization with the remaining balance to be paid at maturity. On August 28, 2018, this note was refinanced for an additional construction loan having a maximum availability of $ 7.4 million. The new note had 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 was payable $ 53,084 per month, including interest, for 72 months , then adjusted based on repriced interest rate until its August 2039 maturity. In May 2020, certain principal and interest payments for this note were deferred to its maturity date. This note was paid off in relation to the September 2021 Refinancing Note. (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 bore an interest rate of prime plus 0.5 % with a floor of 5.0 % and was to mature on August 20, 2029 . During the first 18 months of the construction loan, the Company made monthly interest-only payments, and after such, monthly payments of principal and interest will be made based on a 20 . There are certain financial covenants with which the Company was to be in compliance related to this financing. This note was paid off in relation to the September 2021 Refinancing Note. (13) On April 24, 2018, the Company acquired certain land for future development of a Bombshells in Houston, Texas for $ 5.5 million, financed with a bank note for $ 4.0 million, payable interest only at prime plus 0.5 % with a floor of 5 % per annum. The note was to mature in 24 months, by which date the principal was to be payable in full. In March and July 2020, in view of the pandemic, the bank lender and the Company agreed to defer the maturity of this note to October 2020. In September 2020, they further negotiated to refinance the note with a deferral of maturity to September 2035 with monthly amortization payments of $ 16,396 , including interest. On September 17, 2018, the Company and the bank lender agreed to carve out a portion of the loan that relates to the land where the Bombshells location is to be built amounting to $ 960,000 , and added a construction loan with a maximum availability of $ 2.9 million. The new $ 2.9 million construction loan had an interest rate of prime plus 0.5 %, with a 5.5 % floor, and payable in 12 years. The first 24 months were to be interest-only payments, after which monthly payments of principal and interest were to be made based on a 20 -year amortization. There were certain financial covenants with which the Company was to be in compliance related to this financing. These notes were paid off in relation to the September 2021 Refinancing Note. (14) On May 25, 2018, the Company acquired a club in Kappa, Illinois for $ 1.5 million, financed by a $ 1.0 million seller note with interest at 8 %. The note was to mature in three years and was payable in monthly installments of $ 20,276 , including interest, based on a five-year amortization with the remaining balance to be paid at maturity. This note was fully paid in May 2021. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 9. Debt - continued (15) On August 15, 2018, the Company refinanced a $ 2.0 4.0 12 3 40,000 (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 %, with a 5.95 % floor. Monthly payments of $ 11,138 , including interest, were 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 were certain financial covenants with which the Company was to be in compliance related to this note. This note was paid off in relation to the September 2021 Refinancing Note. (17) On September 26, 2018, the Company refinanced a $ 500,000 12 1.35 9 10 17,101 (18) On November 1, 2018, the Company raised $ 2.35 million through the issuance of 12 % unsecured promissory notes to certain investors, which notes were to mature on November 1, 2021 . The notes paid interest-only in equal monthly installments, with a lump sum principal payment at maturity. Among the promissory notes were two notes with a principal of $ 450,000 and $ 200,000 . The $ 450,000 note was in exchange for a $ 300,000 12% note and the $ 200,000 note was in exchange for a $ 100,000 note, both of which were included in the May 1, 2017 financing to acquire Scarlett’s Cabaret in Miami. Also included in the $ 2.35 million borrowing are two notes for $ 500,000 and $ 100,000 borrowed from related parties (see Note 18) and one note for $ 300,000 borrowed from a non-officer employee in which the terms of the notes are the same as the rest of the lender group. These notes were paid off in relation to the September 2021 Refinancing Note. (19) On November 1, 2018, we acquired a club in Chicago that was partially financed by a $ 4.5 6 7 (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 -year 7 % note for $ 2.0 million and the second is a 10 -year 8 % note for $ 5.5 million. See additional details related to the acquisition in Note 15. On September 30, 2020, the maturity date for the first note was extended to and fully paid off in February 2021 . The second note was paid off in relation to the September 2021 Refinancing Note. (21) On December 11, 2018, the Company purchased an aircraft for $ 2.8 million with a $ 554,000 down payment and financed for 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 had 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 had a maximum availability of $ 4.1 million, was to mature in 252 months from closing date and was 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. The Company paid approximately $ 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 were certain financial covenants with which the Company was to be in compliance related to this financing. In March 2020, certain principal and interest payments for this note were deferred to its maturity date. This note was paid off in relation to the September 2021 Refinancing Note. (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 million 12 % note payable earlier refinanced on August 15, 2018, the Company restructured the note with a private lender by executing a 12 $ 57,388 monthly, including interest, starting March 2020. The restructured note eliminated a scheduled balloon principal payment of $ 4.0 million in August 2021. The refinancing did not have an impact on the Company’s results of operations and cash flows. This note was paid off in relation to the September 2021 Refinancing Note. (25) On February 20, 2020, in relation to a $ 9.9 million 12 % note payable that was partially paid during the December 2017 Refinancing Loan, the Company restructured the note, which had a balance of $ 5.2 million as of the amendment date, by executing a 12% 10-year note payable $ 74,515 monthly, including interest, starting March 2020. The restructured note eliminated a scheduled balloon principal payment of $ 3.8 million in October 2021. As a result of the refinancing, the Company wrote off approximately $ 25,400 in unamortized debt issuance cost as interest expense in our consolidated statement of operations for the year ended September 30, 2020. This note was paid off in relation to the September 2021 Refinancing Note. (26) On May 1, 2020, the Company negotiated extensions to November 1, 2020 on $ 1,740,000 of $ 2,040,000 of notes to individuals that were due on May 1, 2020 . The Company paid $ 300,000 to certain lenders and received $ 200,000 in new debt from existing lenders and their affiliates. The aggregate amount of debt due on these notes was then $ 1,940,000 . On October 31, 2020, the Company negotiated extensions to November 1, 2021 on $ 1,690,000 of the $ 1,940,000 that were due on November 1, 2020. The Company paid $250,000 to a certain lender who only extended a portion of his original note. The remaining balance of these notes were paid off in relation to the September 2021 Refinancing Note. (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. As of September 30, 2021, we have received eleven Notices of PPP Forgiveness Payment from the Small Business Administration out of the twelve of our PPP loans granted. All of those notices received forgave 100% of each of the eleven PPP loans totaling the amount of $5.3 million in principal and interest. In November 2021, we received a partial forgiveness of the remaining $ 124,000 PPP loan for $ 85,000 in principal and interest. The remaining unforgiven portion of approximately $ 41,000 See Notes 3 and 10. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 9. Debt – continued (28) On January 25, 2021, the Company borrowed $ 2.175 20 3.99 13,232 five years 1.0 3.99 25,000 (29) On September 30, 2021, we entered into a $ 99.1 million term loan refinancing $ 85.7 million of existing bank and seller-financed real estate debt and to provide $ 12.3 million in cash that will be used to pay off existing high-interest unsecured debt (“September 2021 Refinancing Note”), enabling those creditors to provide financing for the acquisition of 11 clubs and related real estate (see Note 15). The $ 99.1 million note has a term of 10 years with an initial interest rate of 5.25 % per annum for the first five years , then adjusted to a rate equal to the then weekly average yield of U.S. Treasury Securities plus 350 basis points, with a floor rate of 5.25 %. The note is payable in monthly payments of principal and interest of $ 668,051 , based on a 20 -year amortization period, with the balance paid at maturity. In connection with the transaction, we wrote off to interest expense approximately $ 103,000 of unamortized debt issuance costs related to the paid-off debts. We also paid approximately $ 1.0 million in loan costs, approximately $ 567,000 of which is capitalized and will be amortized together with the remaining unamortized debt issuance costs of some of the existing refinanced debts for the term of the new note using the effective interest method. Future maturities of debt obligations as of September 30, 2021 consist of the following (in thousands): Schedule of Maturities of Long-term Debt Regular Amortization Balloon Payments Total Payments 2022 $ 6,625 $ - $ 6,625 2023 4,825 3,676 8,501 2024 5,094 - 5,094 2025 5,409 - 5,409 2026 5,745 - 5,745 Thereafter 33,145 62,277 95,422 Total maturities of long-term debt, net of debt discount $ 60,843 $ 65,953 $ 126,796 (30) On October 12, 2021, we closed a debt financing transaction with 28 investors for unsecured promissory notes with a total principal amount of $ 17.0 million, all of which bear interest at a rate of 12 % per annum. Of this amount, $ 9.5 million are promissory notes, payable interest only monthly (or quarterly) in arrears, with a final lump sum payment of principal and accrued and unpaid interest due on October 1, 2024 . The remaining amount of the financing is $ 7.5 million in promissory notes, payable in monthly payments of principal and interest based on a 10 -year amortization period, with the balance of the entire principal amount together with all accrued and unpaid interest due and payable in full on October 12, 2024 . Included in the $ 17.0 million borrowing are two notes for $ 500,000 and $ 150,000 borrowed from related parties (see Note 18) and two notes for $ 500,000 and $ 300,000 borrowed from two non-officer employees in which the terms of the notes are the same as the rest of the lender group. (31) On October 18, 2021, in relation to an acquisition (see Note 15), the Company executed four seller-financed promissory notes. The first promissory note was a 10 11.0 6% 120 equal monthly payments 122,123 20 8.0 6% 240 equal monthly payments 57,314 10 -year $ 1.2 million 5.25 % note payable in monthly payments of $ 8,086 20 -year amortization period, with the balance payable at maturity date. The fourth note was a 20 -year $ 1.0 million 6 % note payable in 240 equal monthly payments 7,215 (32) On November 8, 2021, in relation to an acquisition (see Note 15), the Company executed a $ 1.0 million 7 -year promissory note with an interest rate of 4.0 % per annum. The note is payable $ 13,669 per month, including principal and interest. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes Income tax expense (benefit) consisted of the following (in thousands): Schedule of Income Tax Expense (Benefit) 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Current Federal $ 4,598 $ 215 $ 1,886 State and local 644 560 1,037 Total current income tax expense 5,242 775 2,923 Deferred Federal (161 ) (1,248 ) 913 State and local (1,092 ) (20 ) (92 ) Total deferred income tax expense (benefit) (1,253 ) (1,268 ) 821 Total income tax expense (benefit) $ 3,989 $ (493 ) $ 3,744 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 10. 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) 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Federal statutory income tax expense (benefit) $ 7,169 $ (1,429 ) $ 5,080 State income taxes, net of federal benefit 716 253 672 Permanent differences (434 ) 395 45 Change in state tax rate (804 ) - - Change in valuation allowance (632 ) 1,273 - Tax credits (1,207 ) (945 ) (900 ) Other (819 ) (40 ) (1,153 ) Total income tax expense (benefit) $ 3,989 $ (493 ) $ 3,744 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 2021 2020 September 30, 2021 2020 Deferred tax assets: Patron tax $ - $ 349 Capital loss carryforwards 899 1,263 Net operating loss carryforwards 664 - Other 247 2,046 Valuation allowance (641 ) (1,273 ) Net deferred tax assets 1,169 2,385 Deferred tax liabilities: Intangibles (12,174 ) (14,106 ) Property and equipment (8,132 ) (8,669 ) Deferred tax liabilities (20,306 ) (22,775 ) Net deferred tax liability $ (19,137 ) $ (20,390 ) Included in the Company’s deferred tax liabilities at September 30, 2021 and 2020 is the tax effect of indefinite-lived intangible assets from club acquisitions amounting to approximately $ 17.1 million and $ 14.9 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 2019, the Company released the remaining amount accrued when the examination was closed. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 10. Income Taxes - continued The following table shows the changes in the Company’s uncertain tax positions (in thousands): Schedule of Uncertain Tax Positions Years Ended September 30, 2021 2020 2019 Balance at beginning of year $ - $ - $ 165 Additions for tax positions of prior years - - - Decrease related to settlements with taxing authorities - - - Reduction due to lapse from closed examination - - (165 ) Balance at end of year $ - $ - $ - 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 (“IRS”) with no changes. The Company ordinarily goes through various federal and state reviews and examinations for various tax matters. 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, former 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 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 $ 271,000 579,000 4.2 1.1 All of the notices received forgave 100% of each of the 11 PPP loans totaling the amount of $5.3 million 124,000 85,000 41,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Leases See Note 19. Legal Matters Texas Patron Tax In 2015, the Company reached a settlement with the State of Texas over the payment of the state’s Patron Tax on adult club customers. To resolve the issue of taxes owed, the Company agreed to pay $ 10.0 119,000 5 10.0 9.6 7.2 8.2 7.2 In March 2017, the Company settled with the State of Texas for one of the two remaining unsettled Patron Tax locations. To resolve the issue of taxes owed, the Company agreed to pay a total of $ 687,815 195,815 8,200 The aggregate balance of Patron Tax settlement liability, which is included in long-term debt in the consolidated balance sheets, amounted to approximately $ 813,000 2.2 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 % of the costs of litigation and will seek reimbursement from the bankruptcy receiver. The Company filed the appropriate claims against IIC with the Receiver before the January 16, 2015 deadline and has provided updates as requested; however, there are no assurances of any recovery from these claims. It is unknown at this time what effect this uncertainty will have on the Company. As previously stated, since October 25, 2013, the Company has obtained general liability coverage from other insurers, which have covered and/or will cover any claims arising from actions after that date. As of September 30, 2021, we had 2 remaining unresolved claims out of the original 71 claims. 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 (who is no longer a director), Yura Barabash, Luke Lirot, Travis Reese, former director Steven Jenkins, and RCI Hospitality Holdings, Inc., as nominal defendant. The action, styled Cecere v. Langan, et al. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements Legal Matters – continued 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 was sued by a commercial landlord in the 333rd Judicial District Court of Harris County, Texas for a Houston Bombshells which was under renovation in 2015. The Plaintiff alleged 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 failed to provide Plaintiff with proposed plans before beginning construction. Plaintiff asserted RCI Hospitality Holdings, Inc. was also liable as the 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. denied liability and asserted that Plaintiff failed to mitigate its claimed damages. Further, BMB Dining Services (Willowbrook), Inc. asserted that Plaintiff affirmatively represented that construction of the patio was permitted under the lease and accordingly, pursued counter claims against Plaintiff and Plaintiff’s manager for breach of the parties’ agreement. The case was tried to a jury in late September 2018 and an adverse judgment was entered in January 2019 in an amount totaling more than $ 1.15 million, including damages, costs, attorney fees, and interest. The matter was appealed to the Court of Appeals for the First District of Texas. The appeal process required that funds be deposited in the registry of the court in the amount of $ 690,000 , which was deposited in April 2019 and is included in other current assets in the consolidated balance sheet as of September 30, 2020. On June 3, 2021, the Court of Appeals affirmed the lower court’s judgment in the case. A motion to reconsider this decision was denied. This matter was subsequently settled for $ 1.0 million in exchange for a full and complete release of all claims. The settlement funds are comprised of the funds on deposit in the court registry, which total $ 705,876 with interest, and a wire transfer of the remaining $ 294,124 . This settlement will fully resolve this matter. 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. 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, 2021, 2020, and 2019 total $ 1.3 174,000 225,000 378,000 100,000 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Common Stock | 12. Common Stock During the year ended September 30, 2019, the following common stock transactions occurred: â—Ź The Company acquired 128,040 2.9 â—Ź 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: â—Ź The Company acquired 516,102 9.5 â—Ź The Company paid quarterly dividends of $ 0.03 0.04 1.3 During the year ended September 30, 2021, the following common stock transactions occurred: â—Ź The Company acquired 74,659 1.8 â—Ź The Company paid quarterly dividends of $ 0.04 1.4 On October 18, 2021, we partially paid for an acquisition using 500,000 |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Sep. 30, 2021 | |
Employee Retirement Plan | |
Employee Retirement Plan | 13. 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 3 209,000 171,000 164,000 |
Insurance Recoveries
Insurance Recoveries | 12 Months Ended |
Sep. 30, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Insurance Recoveries | 14. 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 2021 2020 2019 Consolidated balance sheets (period end) Insurance receivable Account receivable, net $ 186 $ 191 $ 1,197 Consolidated statements of operations – loss (gain) Business interruption Other charges, net $ - $ (176 ) $ (484 ) Property Other charges, net $ (1,337 ) $ 596 $ (284 ) Consolidated statements of cash flows Proceeds from business interruption insurance claims Operating activity $ 106 $ 384 $ 100 Proceeds from property insurance claims Investing activity $ 1,152 $ 945 $ 100 The net property insurance gain/loss amount in fiscal 2021, 2020, and 2019 was net of assets written off and expenses amounting to $ 88,000 728,000 629,000 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | 15. Acquisitions and Dispositions 2019 Acquisitions On November 1, 2018, the Company acquired the stock of a club in Chicago for $ 10.5 6.0 4.5 7% 37,000 5.0 5.0 7% May 2019 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 $ 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 15. 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 months 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 Dispositions On April 1, 2020, the Company sold a corporate housing property to an employee for $ 375,000 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 2021 Acquisitions On December 28, 2020, the Company acquired the real estate and other business assets of a club in Centerville, Illinois for $ 500,000 48,000 On January 26, 2021, the Company acquired land for a future Bombshells location in Arlington, Texas for $ 2.9 754,000 2.175 20 3.99% On March 10, 2021, the Company acquired approximately 57,000 -square foot of land across the street from our corporate office for $ 475,000 in cash. The Company plans to build a warehouse on that land in the coming months. On March 22, 2021, the Company acquired land adjacent to a Bombshells location in Houston, Texas for $ 1.04 On April 7, 2021, the Company acquired land near our Bombshells location in Pearland, Texas for $ 1.275 2021 Dispositions On May 7, 2021, the Company sold one of the properties held for sale for $ 3.1 2.3 657,000 2.0 On September 21, 2021, the Company sold land where a club used to be operated for $ 2.25 54,000 1.2 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements 15. Acquisitions and Dispositions - continued 2022 Acquisitions On October 18, 2021, we and certain of our subsidiaries completed our acquisition of eleven gentlemen’s clubs, six related real estate properties, and associated intellectual property for a total agreed acquisition price of $ 88.0 million (with a total consideration preliminary fair value of $ 88.4 36.8 million in cash, $ 21.2 million in four seller-financed notes (see Note 9), and 500,000 shares of our common stock. We have not completed our valuation of the assets acquired, therefore, we do not have an allocation of the acquisition price at this time. In connection with the acquisition, we incurred acquisition-related expenses of approximately $ 347,000 174,000 173,000 The following table presents the unaudited pro forma combined results of operations of the Company and the eleven acquired clubs and related assets as though the acquisition occurred at the beginning of fiscal 2021 (in thousands, except per share amount): Schedule of Unaudited Pro Forma Combined Results of Operations For the Fiscal Year Pro forma revenues $ 217,996 Pro forma net income attributable to RCIHH common stockholders $ 25,290 Pro forma earnings per share - basic and diluted $ 2.66 Pro forma weighted average number of common shares outstanding - basic and diluted 9,500 The above unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2021. The unaudited pro forma financial information reflects material, nonrecurring adjustments directly attributable to the acquisition including acquisition-related expenses, interest expense, and any related tax effects. Since we do not have a valuation of the assets that we acquired yet, the unaudited pro forma financial information does not have adjustments related to changes in recognized expenses caused by the fair value of assets acquired, such as depreciation and amortization and related tax effects. Pro forma net income and pro forma earnings per share include acquisition-related expenses that will be recorded in fiscal 2022 amounting to $ 173,000 3.3 500,000 On November 8, 2021, the Company acquired a club and related real estate in Newburgh, New York for a total purchase price of $ 3.5 million, by which $ 2.5 million was paid in cash at closing and $ 1.0 million through a seller-financed 7 -year promissory note with an interest rate of 4.0% per annum. The note is payable $ 13,669 per month, including principal and interest. See Note 9. RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 16. Quarterly Results of Operations (Unaudited) The following tables summarize unaudited quarterly data for fiscal 2021, 2020, and 2019 (in thousands, except per share data): Schedule of Quarterly Financial Information For the Three Months Ended December 31, 2020 March 31, June 30, 2021 September 30, 2021 Revenues (1) $ 38,398 $ 44,059 $ 57,860 $ 54,941 Income from operations (1) $ 6,583 $ 9,841 $ 18,507 $ 3,617 Net income attributable to RCIHH stockholders (1) $ 9,643 $ 6,091 $ 12,302 $ 2,300 Earnings per share (1) Basic and diluted $ 1.07 $ 0.68 $ 1.37 $ 0.26 Weighted average number of common shares outstanding Basic and diluted 9,019 9,000 9,000 9,000 For the Three Months Ended December 31, 2019 March 31, June 30, 2020 September 30, 2020 Revenues (2) $ 48,394 $ 40,426 $ 14,721 $ 28,786 Income (loss) from operations (2) $ 9,686 $ (2,475 ) $ (4,657 ) $ 192 Net income (loss) attributable to RCIHH stockholders (2) $ 5,634 $ (3,452 ) $ (5,474 ) $ (2,793 ) Earnings (loss) per share (2) 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, June 30, 2019 September 30, 2019 Revenues $ 44,023 $ 44,826 $ 47,027 $ 45,183 Income from operations (3) $ 11,132 $ 11,166 $ 9,974 $ 2,429 Net income attributable to RCIHH stockholders (3) $ 7,463 $ 6,735 $ 5,638 $ 458 Earnings per share (3) 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 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements (1) Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($ 4.9 million in the first quarter and $ 380,000 in the second quarter), asset impairments totaling $ 13.6 million ($ 1.4 million in the second quarter, $ 271,000 in the third quarter, and $ 11.9 million in the fourth quarter), and gain on insurance totaling $ 1.3 million ($ 197,000 in the first quarter, $ 12,000 1.0 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was (4.2)% , 24.3% , 24.4% , and (210.4)% from first to fourth quarter, respectively, including the impact of the release of a $ 462,000 (2) 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% (3) 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)% 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 |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 17. 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. Below is the financial information related to the Company’s reportable segments (in thousands): Schedule of Segment Reporting Information 2021 2020 2019 Revenues (from external customers) Nightclubs $ 137,348 $ 88,373 $ 148,606 Bombshells 56,621 43,215 30,828 Other 1,289 739 1,625 $ 195,258 $ 132,327 $ 181,059 Income (loss) from operations Nightclubs $ 43,815 $ 13,056 $ 50,724 Bombshells 13,264 9,237 2,307 Other 35 (614 ) (309 ) General corporate (18,566 ) (18,933 ) (18,021 ) $ 38,548 $ 2,746 $ 34,701 Capital expenditures Nightclubs $ 6,890 $ 3,477 $ 6,645 Bombshells 5,895 2,114 10,457 Other 157 - 27 General corporate 569 145 3,579 $ 13,511 $ 5,736 $ 20,708 Depreciation and amortization Nightclubs $ 5,494 $ 5,799 $ 6,401 Bombshells 1,824 1,785 1,374 Other 87 415 416 General corporate 833 837 881 $ 8,238 $ 8,836 $ 9,072 September 30, 2021 September 30, 2020 September 30, 2019 Total assets Nightclubs $ 280,561 $ 277,960 $ 274,071 Bombshells 52,073 48,991 44,144 Other 1,573 1,269 1,773 General corporate 30,412 32,713 34,768 $ 364,619 $ 360,933 $ 354,756 Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs segment amounting to $ 11.5 11.1 10.0 141,000 70,000 140,000 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 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. 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, 2021 and 2020 was $ 99.7 83.8 Included in the $ 2.35 million borrowing on November 1, 2018 (see Note 9) were notes borrowed from related parties—one note for $ 500,000 (Ed Anakar, an employee of the Company and brother of our former director Nourdean Anakar) and another note for $ 100,000 (from a brother of Company CFO, Bradley Chhay) as part of a larger group of private lenders. The terms of this related party note are the same as the rest of the lender group in the November 1, 2018 transaction. These notes were paid off in relation to the September 2021 Refinancing Note (see Note 9). Included in the $ 17.0 500,000 150,000 We used the services of Nottingham Creations, and previously Sherwood Forest Creations, LLC, both furniture fabrication companies that manufacture 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 $ 118,000 59,000 134,000 12,205 0 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 2021, 2020, and 2019. A son-in-law of Eric Langan owns a 50% interest in TW Mechanical. Amounts billed by TW Mechanical to the third-party general contractor were approximately $ 0 , $ 19,000 , and $ 452,000 for the fiscal years 2021, 2020, and 2019, respectively. Amounts billed directly to the Company were approximately $ 425,000 , $ 62,000 , and $ 47,000 for the fiscal years 2021, 2020, and 2019, respectively. As of September 30, 2021 and 2020, the Company owed TW Mechanical approximately $ 7,500 and $ 5,700 , respectively, in unpaid direct billings. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | 19. Leases ASC 840 (Related to Fiscal 2019) 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 5) were lease payments for a house that the Company’s CEO rented to the Company for corporate housing for its out-of-town Bombshells management and trainers, of which lease expense totaled $ 19,500 78,000 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 ASC 842 (Related to Fiscal 2021 and 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. Future maturities of ASC 842 lease liabilities as of September 30, 2021 are as follows (in thousands): Schedule of Future Maturities of Lease Liabilities Principal Payments Interest Total Payments October 2021 - September 2022 $ 1,780 $ 1,516 $ 3,296 October 2022 - September 2023 1,764 1,409 3,173 October 2023 - September 2024 1,877 1,300 3,177 October 2024 - September 2025 2,062 1,183 3,245 October 2025 - September 2026 2,251 1,053 3,304 Thereafter 16,196 4,375 20,571 $ 25,930 $ 10,836 $ 36,766 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, 2021 and 2020 as follows (in thousands): Schedule of Lease Expense Year Ended September 30, 2021 Year Ended September 30, 2020 Operating lease expense – fixed payments $ 3,325 $ 3,244 Variable lease expense 349 381 Short-term equipment and other lease expense (includes $ 298 315 397 372 955 1,122 Sublease income (6 ) (9 ) Total lease expense, net $ 4,623 $ 4,738 Other information: Operating cash outflows from operating leases $ 4,522 $ 4,562 Weighted average remaining lease term 12 13 Weighted average discount rate 6.0 % 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. We recorded impairment charges of operating lease right-of-use assets amounting to $ 0 104,000 0 RCI HOSPITALITY HOLDINGS, INC. |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2021 | |
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 2019 $ - $ 241 $ (140 ) $ 101 Fiscal 2020 $ 101 $ 347 $ (187 ) $ 261 Fiscal 2021 $ 261 $ 215 $ (94 ) $ 382 Allowance for doubtful notes receivable Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 602 $ (420 ) $ 182 Fiscal 2021 $ 182 $ (80 ) $ - $ 102 Deferred tax asset valuation allowance (3) Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 1,273 $ - $ 1,273 Fiscal 2021 $ 1,273 $ - $ (632 ) $ 641 (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, 2021 | |
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 2021, 2020, and 2019 are for fiscal years ended September 30, 2021, 2020, and 2019, 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. |
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 $ 382,000 261,000 102,000 182,000 |
Inventories | Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at the lower of cost (on a first-in, first-out (“FIFO”) basis), or 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 0 156,000 597,000 |
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 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, 2021, we identified seven reporting units that were impaired and recognized a goodwill impairment loss totaling $ 6.3 7.9 million. See related discussion in Note 3. For the year ended September 30, 2019, we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 1.6 million. 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 $ 5.3 million in 2021 related to three clubs, $ 2.3 million in 2020 related to two clubs (see Note 3), and $ 178,000 in 2019 related to one club, which are included in other charges, net in the consolidated statements of operations. |
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 2021, the Company impaired five clubs (including one later reclassified as held for sale) for a total of $ 2.0 million ; during fiscal 2020, the Company impaired one club and one Bombshells unit for a total of $ 302,000 ; and during fiscal 2019, the Company impaired two clubs for a total of $ 4.2 million. The Company also impaired one club in fiscal of 2020 for operating lease right-of-use assets amounting to $ 104,000 . See Notes 6 and 19. |
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 Revenue from initial franchise and area development fees are recognized as the performance obligations are satisfied over the term of the franchise agreement. Franchise royalties and advertising contributions, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Refer to Notes 4 and 19 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 5. |
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 50 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. |
Paycheck Protection Program | Paycheck Protection Program The Company’s policy is to account for the Paycheck Protection Program (“PPP”) loans as debt (see Note 9). The Company will continue to record the loans 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). During the years ended September 30, 2021, 2020, and 2019, the Company did not have any 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, 2021 and 2020, the Company has no stock options outstanding, since as of September 30, 2020, the Company’s 2010 Stock Option Plan contractually expired. |
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 less than $ 1,000 and approximately $ 84,000 respectively as of September 30, 2021 and 2020. 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, 2021, 2020, and 2019. |
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 September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable Inputs Description 2021 (Level 1) (Level 2) (Level 3) Property and equipment $ 2,044 $ $ - $ 2,044 Indefinite-lived intangibles 2,008 - - 2,008 Goodwill 2,096 - - 2,096 Operating lease right-of-use assets* 491 - - 491 Operating lease liabilities* (491 ) - - (491 ) Asset held for sale 3,007 - 3,007 - * Measured at the lease modification dates. Fair Value at Reporting Date Using September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable 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 - - ** M easured at October 1, 2019, upon the adoption of ASC 842. 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 2021 2020 2019 Goodwill $ (6,307 ) $ (7,944 ) $ (1,638 ) Property and equipment, net (including held for sale) (2,202 ) (302 ) (4,224 ) Indefinite-lived intangibles (5,296 ) (2,265 ) (178 ) Operating lease right-of-use assets - (104 ) - Other assets (equity securities) (84 ) (64 ) (612 ) The significant unobservable inputs used in our level 3 fair value measurements are as follows: Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement Assets Valuation Techniques Unobservable Input Range (Weighted Average) Property and equipment Discounted cash flow EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 Goodwill Discounted cash flow EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 SOB licenses Multiperiod excess earnings EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 Contributory asset charges rate 1.4 8.0 4 Tradename Relief-from-royalty method Revenue growth rate 0 2.5 2.5 Terminal multiple 8 Weighted average cost of capital 15 15 Operating lease right-of-use assets Discounted cash flow EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 |
Reclassification | Reclassification Certain reclassifications of cost of goods sold components with immaterial amounts have been made to prior year’s financial statements to conform to the current year financial statement presentation. There is no impact in total cost of goods sold, results of operations, and cash flows in all periods presented. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable Inputs Description 2021 (Level 1) (Level 2) (Level 3) Property and equipment $ 2,044 $ $ - $ 2,044 Indefinite-lived intangibles 2,008 - - 2,008 Goodwill 2,096 - - 2,096 Operating lease right-of-use assets* 491 - - 491 Operating lease liabilities* (491 ) - - (491 ) Asset held for sale 3,007 - 3,007 - * Measured at the lease modification dates. Fair Value at Reporting Date Using September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable 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 - - ** M easured at October 1, 2019, upon the adoption of ASC 842. 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 2021 2020 2019 Goodwill $ (6,307 ) $ (7,944 ) $ (1,638 ) Property and equipment, net (including held for sale) (2,202 ) (302 ) (4,224 ) Indefinite-lived intangibles (5,296 ) (2,265 ) (178 ) Operating lease right-of-use assets - (104 ) - Other assets (equity securities) (84 ) (64 ) (612 ) |
Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement | The significant unobservable inputs used in our level 3 fair value measurements are as follows: Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement Assets Valuation Techniques Unobservable Input Range (Weighted Average) Property and equipment Discounted cash flow EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 Goodwill Discounted cash flow EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 SOB licenses Multiperiod excess earnings EBITDA multiple 8 Revenue/EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 Contributory asset charges rate 1.4 8.0 4 Tradename Relief-from-royalty method Revenue growth rate 0 2.5 2.5 Terminal multiple 8 Weighted average cost of capital 15 15 Operating lease right-of-use assets Discounted cash flow EBITDA growth rate 0 2.5 1 Weighted average cost of capital 13 17 15 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 17), are shown below (in thousands). Schedule of Disaggregation of Segment Revenues Fiscal 2021 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 54,305 $ 32,380 $ - $ 86,685 Sales of food and merchandise 17,221 23,890 - 41,111 Service revenues 55,146 315 - 55,461 Other revenues 10,676 36 1,289 12,001 $ 137,348 $ 56,621 $ 1,289 $ 195,258 Recognized at a point in time $ 135,799 $ 56,617 $ 1,284 $ 193,700 Recognized over time 1,549 4 5 1,558 $ 137,348 $ 56,621 $ 1,289 $ 195,258 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 * Lease revenue (included in Other Revenues) is covered by ASC 842 in fiscal 2021 and 2020, and ASC 840 in fiscal 2019. All other revenues are covered by ASC Topic 606. |
Schedule of Reconciliation of Contract Liabilities with Customers | Schedule of Reconciliation of Contract Liabilities with Customers Balance at September 30, 2019 Consideration Received Recognized in Revenue Balance at September 30, 2020 Consideration Received Recognized in Revenue Balance at September 30, 2021 Ad revenue $ 76 $ 538 $ (522 ) $ 92 $ 593 $ (601 ) $ 84 Expo revenue - 211 - 211 393 (453 ) 151 Other (including franchise fees, see below) 7 40 (14 ) 33 94 (8 ) 119 $ 83 $ 789 $ (536 ) $ 336 $ 1,080 $ (1,062 ) $ 354 |
Selected Account Information (T
Selected Account Information (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Selected Account Information | |
Schedule of Accounts Receivable | The components of accounts receivable, net are as follows (in thousands): Schedule of Accounts Receivable 2021 2020 September 30, 2021 2020 Credit card receivables $ 1,447 $ 880 Income tax refundable 4,472 4,325 Insurance receivable 185 191 ATM-in-transit 277 160 Other (net of allowance for doubtful accounts of $ 382 261 1,189 1,211 Total accounts receivable, net $ 7,570 $ 6,767 |
Schedule of Components of Prepaid Expenses and Other Current Assets | The components of prepaid expenses and other current assets are as follows (in thousands): Schedule of Components of Prepaid Expenses and Other Current Assets 2021 2020 September 30, 2021 2020 Prepaid insurance $ 277 $ 4,884 Prepaid legal 112 735 Prepaid taxes and licenses 380 428 Prepaid rent 309 37 Other 850 404 Total prepaid expenses and other current assets $ 1,928 $ 6,488 |
Schedule of Accrued Liabilities | The components of accrued liabilities are as follows (in thousands): Schedule of Accrued Liabilities 2021 2020 September 30, 2021 2020 Insurance $ 54 $ 4,405 Payroll and related costs 3,220 2,419 Property taxes 2,178 2,003 Sales and liquor taxes 2,261 2,613 Interest 145 1,390 Patron tax 452 309 Lawsuit settlement 378 100 Unearned revenues 354 336 Other 1,361 998 Accrued liabilities $ 10,403 $ 14,573 |
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 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Taxes and permits $ 8,701 $ 8,071 $ 10,779 Advertising and marketing 6,676 5,367 8,392 Supplies and services 6,190 4,711 5,911 Insurance 5,676 5,777 5,429 Lease 3,942 4,060 3,896 Legal 3,997 4,725 5,180 Utilities 3,366 2,945 3,165 Charge cards fees 3,376 2,382 3,803 Security 3,892 2,582 2,973 Accounting and professional fees 2,031 3,463 2,815 Repairs and maintenance 2,767 2,289 2,980 Other 3,994 5,320 4,573 Selling, general and administrative expenses $ 54,608 $ 51,692 $ 59,896 |
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 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Impairment of assets $ 13,612 $ 10,615 $ 6,040 Settlement of lawsuits 1,349 174 225 Gain on sale of businesses and assets (522 ) (661 ) (2,877 ) Loss (gain) on insurance (1,253 ) 420 (768 ) Other charges $ 13,186 $ 10,548 $ 2,620 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 Buildings and land $ 162,217 $ 163,938 Equipment 38,046 37,000 Leasehold improvements 28,681 29,776 Furniture 10,207 9,614 Total property and equipment 239,151 240,328 Less accumulated depreciation (63,199 ) (58,945 ) Property and equipment, net $ 175,952 $ 181,383 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 September 30, 2021 2020 Indefinite useful lives: Goodwill $ 39,379 $ 45,686 Licenses 65,186 70,332 Tradename and domain name 2,238 2,215 Indefinite Intangible Assets, Net, Total 106,803 118,233 Amortization Period Definite useful lives: Discounted leases 18 6 86 93 Non-compete agreements 5 182 362 Software 5 132 23 Distribution agreement 3 - 52 400 530 Total goodwill and other intangible assets $ 107,203 $ 118,763 |
Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill | Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill 2021 2020 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 530 $ 72,547 $ 45,686 $ 1,139 $ 74,812 $ 53,630 Acquisitions 128 173 - - - - Impairment - (5,296 ) (6,307 ) - (2,265 ) (7,944 ) Amortization (258 ) - - (609 ) - - Ending balance $ 400 $ 67,424 $ 39,379 $ 530 $ 72,547 $ 45,686 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Debt consisted of the following (in thousands): Schedule of Long-term Debt September 30, 2021 2020 $ 785 $ 886 Notes payable at 5.5 January 2023 (d)(1) $ 785 $ 886 Non-interest-bearing debts to State of Texas, mature March 2022 and May 2022 9.6 (d)(2) 813 2,177 Note payable at 5.75 December 2027 *(a)(6ii)(7) - 9,715 Note payable at 5.95 December 2027 *(a)(6iii)(7) - 5,787 Note payable at 12 February 2030 (d)(3)(25) - 5,031 Notes payable at 12 November 2021 (d)(4)(26) - 1,940 Note payable at 8 % October 2027 (b)(5)(23) 3,025 3,025 Note payable at 8 May 2029 (b)(5) 11,549 12,599 Note payable at 5.75 December 2027 *(a)(6i)(7)(8)(9) - 49,830 Note payable at 5.99 September 2033 (c) (10) 6,089 6,395 Note payable at 5 August 2029 *(a)(12) - 2,165 Note payable at prime plus 0.5 5.5 September 2035 *(a)(13) - 2,099 Note payable initially at prime plus 0.5 5.5 September 2030 *(a)(13) - 2,861 Note payable at 8 May 2021 (a)(14) - 582 Note payable at 5.95 August 2039 *(a)(11) - 6,979 Note payable at 12 February 2030 (d)(15)(24) - 3,875 Note payable at 9 September 2028 (a)(17) 1,063 1,167 Note payable at 5.95 September 2028 *(a)(16) - 1,489 Note payable at 6 February 2040 *(a)(22) - 4,066 Note payable at 5.49 March 2039 (c)(21) 2,075 2,125 Note payable at 7 November 2024 (b)(19) - 3,319 Note payable at 7 February 2021 (b)(20) - 2,000 Notes payable at 12 November 2021 (d)(18) - 2,350 Note payable at 8 November 2028 (b)(20) - 4,790 Note payable at 3.99 January 2041 *(a)(28) 2,127 - Note payable at 5.25 September 2031 *(a)(29) 99,146 - Paycheck Protection Program loans at 1 May 2022 (d)(27) 124 5,422 Total debt 126,796 142,674 Less unamortized debt discount and issuance costs (1,628 ) (1,239 ) Less current portion (6,434 ) (16,304 ) Total long-term portion of debt, net $ 118,734 $ 125,131 |
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 2021 2020 (a) Secured by real estate $ 102,336 $ 86,740 (b) Secured by stock in subsidiary 14,574 25,733 (c) Secured by other assets 8,164 8,520 (d) Unsecured 1,722 21,681 $ 126,796 $ 142,674 |
Schedule of Maturities of Long-term Debt | Future maturities of debt obligations as of September 30, 2021 consist of the following (in thousands): Schedule of Maturities of Long-term Debt Regular Amortization Balloon Payments Total Payments 2022 $ 6,625 $ - $ 6,625 2023 4,825 3,676 8,501 2024 5,094 - 5,094 2025 5,409 - 5,409 2026 5,745 - 5,745 Thereafter 33,145 62,277 95,422 Total maturities of long-term debt, net of debt discount $ 60,843 $ 65,953 $ 126,796 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Current Federal $ 4,598 $ 215 $ 1,886 State and local 644 560 1,037 Total current income tax expense 5,242 775 2,923 Deferred Federal (161 ) (1,248 ) 913 State and local (1,092 ) (20 ) (92 ) Total deferred income tax expense (benefit) (1,253 ) (1,268 ) 821 Total income tax expense (benefit) $ 3,989 $ (493 ) $ 3,744 |
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) 2021 2020 2019 Years Ended September 30, 2021 2020 2019 Federal statutory income tax expense (benefit) $ 7,169 $ (1,429 ) $ 5,080 State income taxes, net of federal benefit 716 253 672 Permanent differences (434 ) 395 45 Change in state tax rate (804 ) - - Change in valuation allowance (632 ) 1,273 - Tax credits (1,207 ) (945 ) (900 ) Other (819 ) (40 ) (1,153 ) Total income tax expense (benefit) $ 3,989 $ (493 ) $ 3,744 |
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 2021 2020 September 30, 2021 2020 Deferred tax assets: Patron tax $ - $ 349 Capital loss carryforwards 899 1,263 Net operating loss carryforwards 664 - Other 247 2,046 Valuation allowance (641 ) (1,273 ) Net deferred tax assets 1,169 2,385 Deferred tax liabilities: Intangibles (12,174 ) (14,106 ) Property and equipment (8,132 ) (8,669 ) Deferred tax liabilities (20,306 ) (22,775 ) Net deferred tax liability $ (19,137 ) $ (20,390 ) |
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 Years Ended September 30, 2021 2020 2019 Balance at beginning of year $ - $ - $ 165 Additions for tax positions of prior years - - - Decrease related to settlements with taxing authorities - - - Reduction due to lapse from closed examination - - (165 ) Balance at end of year $ - $ - $ - |
Insurance Recoveries (Tables)
Insurance Recoveries (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 2019 Consolidated balance sheets (period end) Insurance receivable Account receivable, net $ 186 $ 191 $ 1,197 Consolidated statements of operations – loss (gain) Business interruption Other charges, net $ - $ (176 ) $ (484 ) Property Other charges, net $ (1,337 ) $ 596 $ (284 ) Consolidated statements of cash flows Proceeds from business interruption insurance claims Operating activity $ 106 $ 384 $ 100 Proceeds from property insurance claims Investing activity $ 1,152 $ 945 $ 100 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Schedule of Unaudited Pro Forma Combined Results of Operations | The following table presents the unaudited pro forma combined results of operations of the Company and the eleven acquired clubs and related assets as though the acquisition occurred at the beginning of fiscal 2021 (in thousands, except per share amount): Schedule of Unaudited Pro Forma Combined Results of Operations For the Fiscal Year Pro forma revenues $ 217,996 Pro forma net income attributable to RCIHH common stockholders $ 25,290 Pro forma earnings per share - basic and diluted $ 2.66 Pro forma weighted average number of common shares outstanding - basic and diluted 9,500 |
Chicago Club [Member] | |
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] | |
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, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables summarize unaudited quarterly data for fiscal 2021, 2020, and 2019 (in thousands, except per share data): Schedule of Quarterly Financial Information For the Three Months Ended December 31, 2020 March 31, June 30, 2021 September 30, 2021 Revenues (1) $ 38,398 $ 44,059 $ 57,860 $ 54,941 Income from operations (1) $ 6,583 $ 9,841 $ 18,507 $ 3,617 Net income attributable to RCIHH stockholders (1) $ 9,643 $ 6,091 $ 12,302 $ 2,300 Earnings per share (1) Basic and diluted $ 1.07 $ 0.68 $ 1.37 $ 0.26 Weighted average number of common shares outstanding Basic and diluted 9,019 9,000 9,000 9,000 For the Three Months Ended December 31, 2019 March 31, June 30, 2020 September 30, 2020 Revenues (2) $ 48,394 $ 40,426 $ 14,721 $ 28,786 Income (loss) from operations (2) $ 9,686 $ (2,475 ) $ (4,657 ) $ 192 Net income (loss) attributable to RCIHH stockholders (2) $ 5,634 $ (3,452 ) $ (5,474 ) $ (2,793 ) Earnings (loss) per share (2) 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, June 30, 2019 September 30, 2019 Revenues $ 44,023 $ 44,826 $ 47,027 $ 45,183 Income from operations (3) $ 11,132 $ 11,166 $ 9,974 $ 2,429 Net income attributable to RCIHH stockholders (3) $ 7,463 $ 6,735 $ 5,638 $ 458 Earnings per share (3) 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 RCI HOSPITALITY HOLDINGS, INC. Notes to Consolidated Financial Statements (1) Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($ 4.9 million in the first quarter and $ 380,000 in the second quarter), asset impairments totaling $ 13.6 million ($ 1.4 million in the second quarter, $ 271,000 in the third quarter, and $ 11.9 million in the fourth quarter), and gain on insurance totaling $ 1.3 million ($ 197,000 in the first quarter, $ 12,000 1.0 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was (4.2)% , 24.3% , 24.4% , and (210.4)% from first to fourth quarter, respectively, including the impact of the release of a $ 462,000 (2) 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% (3) 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)% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 2019 Revenues (from external customers) Nightclubs $ 137,348 $ 88,373 $ 148,606 Bombshells 56,621 43,215 30,828 Other 1,289 739 1,625 $ 195,258 $ 132,327 $ 181,059 Income (loss) from operations Nightclubs $ 43,815 $ 13,056 $ 50,724 Bombshells 13,264 9,237 2,307 Other 35 (614 ) (309 ) General corporate (18,566 ) (18,933 ) (18,021 ) $ 38,548 $ 2,746 $ 34,701 Capital expenditures Nightclubs $ 6,890 $ 3,477 $ 6,645 Bombshells 5,895 2,114 10,457 Other 157 - 27 General corporate 569 145 3,579 $ 13,511 $ 5,736 $ 20,708 Depreciation and amortization Nightclubs $ 5,494 $ 5,799 $ 6,401 Bombshells 1,824 1,785 1,374 Other 87 415 416 General corporate 833 837 881 $ 8,238 $ 8,836 $ 9,072 September 30, 2021 September 30, 2020 September 30, 2019 Total assets Nightclubs $ 280,561 $ 277,960 $ 274,071 Bombshells 52,073 48,991 44,144 Other 1,573 1,269 1,773 General corporate 30,412 32,713 34,768 $ 364,619 $ 360,933 $ 354,756 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases | |
Schedule of Future Maturities of Lease Liabilities | Future maturities of ASC 842 lease liabilities as of September 30, 2021 are as follows (in thousands): Schedule of Future Maturities of Lease Liabilities Principal Payments Interest Total Payments October 2021 - September 2022 $ 1,780 $ 1,516 $ 3,296 October 2022 - September 2023 1,764 1,409 3,173 October 2023 - September 2024 1,877 1,300 3,177 October 2024 - September 2025 2,062 1,183 3,245 October 2025 - September 2026 2,251 1,053 3,304 Thereafter 16,196 4,375 20,571 $ 25,930 $ 10,836 $ 36,766 |
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, 2021 and 2020 as follows (in thousands): Schedule of Lease Expense Year Ended September 30, 2021 Year Ended September 30, 2020 Operating lease expense – fixed payments $ 3,325 $ 3,244 Variable lease expense 349 381 Short-term equipment and other lease expense (includes $ 298 315 397 372 955 1,122 Sublease income (6 ) (9 ) Total lease expense, net $ 4,623 $ 4,738 Other information: Operating cash outflows from operating leases $ 4,522 $ 4,562 Weighted average remaining lease term 12 13 Weighted average discount rate 6.0 % 6.1 % |
Schedule of Valuation and Qua_2
Schedule of Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 2019 $ - $ 241 $ (140 ) $ 101 Fiscal 2020 $ 101 $ 347 $ (187 ) $ 261 Fiscal 2021 $ 261 $ 215 $ (94 ) $ 382 Allowance for doubtful notes receivable Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 602 $ (420 ) $ 182 Fiscal 2021 $ 182 $ (80 ) $ - $ 102 Deferred tax asset valuation allowance (3) Fiscal 2019 $ - $ - $ - $ - Fiscal 2020 $ - $ 1,273 $ - $ 1,273 Fiscal 2021 $ 1,273 $ - $ (632 ) $ 641 (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, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Property and equipment | $ 2,044 | $ 6,042 | |||
Indefinite-lived intangibles | 2,008 | 656 | |||
Goodwill | 2,096 | 5,883 | |||
Goodwill | 39,379 | 45,686 | $ 53,630 | ||
Operating lease right-of-use assets | 491 | [1] | 27,310 | [2] | |
Operating lease liabilities | (491) | [1] | (28,551) | [2] | |
Asset held for sale | 3,007 | ||||
Other assets (equity securities) | 84 | ||||
Property and equipment, net (including held for sale) | (175,952) | (181,383) | |||
Indefinite-lived intangibles | (67,424) | (72,547) | (74,812) | ||
Operating lease right-of-use assets | (24,308) | (25,546) | |||
Operating lease right-of-use assets | 24,308 | 25,546 | |||
Unrealized Gain (Loss/Impairments) Recognized [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Goodwill | (6,307) | (7,944) | (1,638) | ||
Property and equipment, net (including held for sale) | (2,202) | (302) | (4,224) | ||
Indefinite-lived intangibles | (5,296) | (2,265) | (178) | ||
Operating lease right-of-use assets | (104) | ||||
Operating lease right-of-use assets | 104 | ||||
Other assets (equity securities) | (84) | (64) | $ (612) | ||
Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Property and equipment | |||||
Indefinite-lived intangibles | |||||
Goodwill | [1] | ||||
Operating lease right-of-use assets | [1] | [2] | |||
Operating lease liabilities | [1] | [2] | |||
Asset held for sale | |||||
Other assets (equity securities) | 84 | ||||
Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Property and equipment | |||||
Indefinite-lived intangibles | |||||
Goodwill | |||||
Goodwill | |||||
Operating lease right-of-use assets | [1] | [2] | |||
Operating lease liabilities | [1] | [2] | |||
Asset held for sale | 3,007 | ||||
Other assets (equity securities) | |||||
Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Property and equipment | 2,044 | 6,042 | |||
Indefinite-lived intangibles | 2,008 | 656 | |||
Goodwill | 5,883 | ||||
Goodwill | 2,096 | ||||
Operating lease right-of-use assets | 491 | [1] | 27,310 | [2] | |
Operating lease liabilities | (491) | [1] | (28,551) | [2] | |
Asset held for sale | |||||
Other assets (equity securities) | |||||
[1] | Measured at the lease modification dates. | ||||
[2] | M easured at October 1, 2019, upon the adoption of ASC 842. |
Schedule of Significant Unobser
Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement (Details) - Fair Value, Inputs, Level 3 [Member] | Sep. 30, 2021 |
Property, Plant and Equipment [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, EBITDA Multiple [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 8 |
Property, Plant and Equipment [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 1 |
Property, Plant and Equipment [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 0 |
Property, Plant and Equipment [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 2.5 |
Property, Plant and Equipment [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 15 |
Property, Plant and Equipment [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 13 |
Property, Plant and Equipment [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 17 |
Goodwill [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, EBITDA Multiple [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 8 |
Goodwill [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 1 |
Goodwill [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 0 |
Goodwill [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 2.5 |
Goodwill [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 15 |
Goodwill [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 13 |
Goodwill [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 17 |
SOB Licenses [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, EBITDA Multiple [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 8 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 1 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 0 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Revenue EBITDA Growth Rate [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 2.5 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Weighted Average Cost of Capital [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 15 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 13 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 17 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Contributory Asset Charges Rate [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 4 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Contributory Asset Charges Rate [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 1.4 |
SOB Licenses [Member] | Valuation Technique Multiperiod Excess Earnings [Member] | Measurement Input Contributory Asset Charges Rate [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 8 |
Trade Names [Member] | Valuation Technique Relief From Royalty Method [Member] | Measurement Input Weighted Average Cost of Capital [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 15 |
Trade Names [Member] | Valuation Technique Relief From Royalty Method [Member] | Measurement Input Revenue Growth Rate [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 2.5 |
Trade Names [Member] | Valuation Technique Relief From Royalty Method [Member] | Measurement Input Revenue Growth Rate [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 0 |
Trade Names [Member] | Valuation Technique Relief From Royalty Method [Member] | Measurement Input Revenue Growth Rate [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 2.5 |
Trade Names [Member] | Valuation Technique Relief From Royalty Method [Member] | Measurement Input Terminal Multiple [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 8 |
Operating Lease Right of Use Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 15 |
Operating Lease Right of Use Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 13 |
Operating Lease Right of Use Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Weighted Average Cost of Capital [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 17 |
Operating Lease Right of Use Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input EBITDA Growth Rate [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 1 |
Operating Lease Right of Use Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input EBITDA Growth Rate [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 0 |
Operating Lease Right of Use Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input EBITDA Growth Rate [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset fair value, measurement input | 2.5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Allowance for doubtful accounts | $ 382,000 | $ 261,000 | |
Interest expense related debt | 0 | 156,000 | $ 597,000 |
Goodwill impairment loss | $ 6,307,000 | 7,944,000 | 1,600,000 |
Right-of-use operating lease assets | 104 | ||
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. | ||
Debt Securities, Available-for-sale | $ 1,000 | 84,000 | |
Two Clubs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Proceeds from Sale of Property Held-for-sale | 2,000,000 | 4,200,000 | |
One Club and One Bombshells [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Proceeds from Sale of Property Held-for-sale | 302,000 | ||
One Club [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Right-of-use operating lease assets | 104,000 | ||
SOB Licenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill impairment loss | 5,300,000 | ||
Other Asset Impairment Charges | $ 5,300,000 | 2,300,000 | $ 178,000 |
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 | $ 102,000 | $ 182,000 |
Ongoing Impact of COVID-19 Pa_2
Ongoing Impact of COVID-19 Pandemic (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of assets | $ 13,600,000 | $ 10,600,000 | |
Goodwill, Impairment Loss | 6,307,000 | 7,944,000 | $ 1,600,000 |
Impairment of SOB licenses | 2,300,000 | ||
Impairment of Long-Lived Assets to be Disposed of | 2,000,000 | 302,000 | |
Right-of-use operating lease assets | $ 104 | ||
SOB Licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Impairment Loss | $ 5,300,000 |
Schedule of Disaggregation of S
Schedule of Disaggregation of Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2021 | [1] | Jun. 30, 2021 | [1] | Mar. 31, 2021 | [1] | Dec. 31, 2020 | [1] | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [2] | Mar. 31, 2020 | [2] | Dec. 31, 2019 | [2] | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | $ 54,941 | $ 57,860 | $ 44,059 | $ 38,398 | $ 28,786 | $ 14,721 | $ 40,426 | $ 48,394 | $ 45,183 | $ 47,027 | $ 44,826 | $ 44,023 | $ 195,258 | $ 132,327 | $ 181,059 | ||||||||
Transferred at Point in Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 193,700 | 130,989 | 179,338 | ||||||||||||||||||||
Transferred over Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 1,558 | 1,338 | 1,721 | ||||||||||||||||||||
Sales of Alcoholic Beverages [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 86,685 | 59,080 | 75,140 | ||||||||||||||||||||
Food and Beverage [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 41,111 | 24,460 | 25,830 | ||||||||||||||||||||
Service [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 55,461 | 41,162 | 68,055 | ||||||||||||||||||||
Other Revenues [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 12,001 | 7,625 | 12,034 | ||||||||||||||||||||
Nightclubs [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 137,348 | 88,373 | 148,606 | ||||||||||||||||||||
Nightclubs [Member] | Transferred at Point in Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 135,799 | 87,049 | 146,938 | ||||||||||||||||||||
Nightclubs [Member] | Transferred over Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 1,549 | 1,324 | 1,668 | ||||||||||||||||||||
Nightclubs [Member] | Sales of Alcoholic Beverages [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 54,305 | 31,950 | 57,277 | ||||||||||||||||||||
Nightclubs [Member] | Food and Beverage [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 17,221 | 8,561 | 13,051 | ||||||||||||||||||||
Nightclubs [Member] | Service [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 55,146 | 41,004 | 67,893 | ||||||||||||||||||||
Nightclubs [Member] | Other Revenues [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 10,676 | 6,858 | 10,385 | ||||||||||||||||||||
Bombshells [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 56,621 | 43,215 | 30,828 | ||||||||||||||||||||
Bombshells [Member] | Transferred at Point in Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 56,617 | 43,215 | 30,828 | ||||||||||||||||||||
Bombshells [Member] | Transferred over Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 4 | ||||||||||||||||||||||
Bombshells [Member] | Sales of Alcoholic Beverages [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 32,380 | 27,130 | 17,863 | ||||||||||||||||||||
Bombshells [Member] | Food and Beverage [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 23,890 | 15,899 | 12,779 | ||||||||||||||||||||
Bombshells [Member] | Service [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 315 | 158 | 162 | ||||||||||||||||||||
Bombshells [Member] | Other Revenues [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 36 | 28 | 24 | ||||||||||||||||||||
Other [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 1,289 | 739 | 1,625 | ||||||||||||||||||||
Other [Member] | Transferred at Point in Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 1,284 | 725 | 1,572 | ||||||||||||||||||||
Other [Member] | Transferred over Time [Member] | |||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||
Total revenues | 5 | 14 | 53 | ||||||||||||||||||||
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 | $ 1,289 | $ 739 | $ 1,625 | ||||||||||||||||||||
[1] | Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($ | ||||||||||||||||||||||
[2] | 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% |
Schedule of Reconciliation of C
Schedule of Reconciliation of Contract Liabilities with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers ending | $ 336 | $ 83 |
Consideration Received | 1,080 | 789 |
Recognized in Revenue | (1,062) | (536) |
Contract with Customer, Liability, Current | 354 | 336 |
Ad Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers ending | 92 | 76 |
Consideration Received | 593 | 538 |
Recognized in Revenue | (601) | (522) |
Contract with Customer, Liability, Current | 84 | 92 |
Expo Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers ending | 211 | |
Consideration Received | 393 | 211 |
Recognized in Revenue | (453) | |
Contract with Customer, Liability, Current | 151 | 211 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities with customers ending | 33 | 7 |
Consideration Received | 94 | 40 |
Recognized in Revenue | (8) | (14) |
Contract with Customer, Liability, Current | $ 119 | $ 33 |
Revenues (Details Narrative)
Revenues (Details Narrative) | Dec. 22, 2020USD ($) |
Development Fees [Member] | Franchise Development Agreement [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 75,000 |
FirstRestaurant [Member] | |
Disaggregation of Revenue [Line Items] | |
Franchise fee percentage | 100.00% |
Second Restaurant [Member] | |
Disaggregation of Revenue [Line Items] | |
Franchise fee percentage | 50.00% |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Selected Account Information | ||
Credit card receivables | $ 1,447 | $ 880 |
Income tax refundable | 4,472 | 4,325 |
Insurance receivable | 185 | 191 |
ATM-in-transit | 277 | 160 |
Other (net of allowance for doubtful accounts of $382 and $261, respectively) | 1,189 | 1,211 |
Total accounts receivable, net | $ 7,570 | $ 6,767 |
Schedule of Accounts Receivab_2
Schedule of Accounts Receivable (Details) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Selected Account Information | ||
Allowance for doubtful accounts | $ 382 | $ 261 |
Schedule of Components of Prepa
Schedule of Components of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Selected Account Information | ||
Prepaid insurance | $ 277 | $ 4,884 |
Prepaid legal | 112 | 735 |
Prepaid taxes and licenses | 380 | 428 |
Prepaid rent | 309 | 37 |
Other | 850 | 404 |
Total prepaid expenses and other current assets | $ 1,928 | $ 6,488 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Selected Account Information | |||
Insurance | $ 54 | $ 4,405 | |
Payroll and related costs | 3,220 | 2,419 | |
Property taxes | 2,178 | 2,003 | |
Sales and liquor taxes | 2,261 | 2,613 | |
Interest | 145 | 1,390 | |
Patron tax | 452 | 309 | |
Lawsuit settlement | 378 | 100 | |
Unearned revenues | 354 | 336 | $ 83 |
Other | 1,361 | 998 | |
Accrued liabilities | $ 10,403 | $ 14,573 |
Schedule of Selling, General an
Schedule of Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Selected Account Information | |||
Taxes and permits | $ 8,701 | $ 8,071 | $ 10,779 |
Advertising and marketing | 6,676 | 5,367 | 8,392 |
Supplies and services | 6,190 | 4,711 | 5,911 |
Insurance | 5,676 | 5,777 | 5,429 |
Lease | 3,942 | 4,060 | 3,896 |
Legal | 3,997 | 4,725 | 5,180 |
Utilities | 3,366 | 2,945 | 3,165 |
Charge cards fees | 3,376 | 2,382 | 3,803 |
Security | 3,892 | 2,582 | 2,973 |
Accounting and professional fees | 2,031 | 3,463 | 2,815 |
Repairs and maintenance | 2,767 | 2,289 | 2,980 |
Other | 3,994 | 5,320 | 4,573 |
Selling, general and administrative expenses | $ 54,608 | $ 51,692 | $ 59,896 |
Schedule of Components of Other
Schedule of Components of Other Charges, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Selected Account Information | |||
Impairment of assets | $ 13,612 | $ 10,615 | $ 6,040 |
Settlement of lawsuits | 1,349 | 174 | 225 |
Gain on sale of businesses and assets | (522) | (661) | (2,877) |
Loss (gain) on insurance | (1,253) | 420 | (768) |
Other charges | $ 13,186 | $ 10,548 | $ 2,620 |
Selected Account Information (D
Selected Account Information (Details Narrative) | Nov. 08, 2021 | Jan. 25, 2021 | Aug. 15, 2018 | Apr. 24, 2018 | Oct. 05, 2016 | Sep. 30, 2021 | Jul. 31, 2019 | Oct. 31, 2018 | Feb. 15, 2018 |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 3.99% | 12.00% | 9.00% | 9.00% | 5.25% | |||
Debt Instrument, Term | 7 years | 20 years | 3 years | 24 months | 5 years | ||||
Minimum [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||
Debt Instrument, Term | 1 year | ||||||||
Maximum [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | ||||||||
Debt Instrument, Term | 20 years |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 239,151 | $ 240,328 |
Less accumulated depreciation | (63,199) | (58,945) |
Property and equipment, net | 175,952 | 181,383 |
Land and Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 162,217 | 163,938 |
Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 38,046 | 37,000 |
Leaseholds and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 28,681 | 29,776 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 10,207 | $ 9,614 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Construction in Progress, Gross | $ 3,400,000 | $ 20,000 | |
Depreciation | 8,000,000 | 8,200,000 | $ 8,400,000 |
Impairment loss of property and equipment | $ 2,000,000 | $ 302,000 | $ 4,200,000 |
Assets Held for Sale (Details N
Assets Held for Sale (Details Narrative) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
May 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Held-For-Sale Property [Member] | |||
Real estate held for sale carrying value | $ 8.6 | ||
Proceeds from sale of property held-for-sale | $ 2.3 | $ 1.1 | |
Assets Held-for-sale, Not Part of Disposal Group | $ 3.1 | ||
Three Real Estate Properties For Sale [Member] | |||
Estimated fair value of properties lease cost | $ 7.2 |
Schedule of Goodwill and Other
Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 39,379 | $ 45,686 | $ 53,630 |
Licenses | 65,186 | 70,332 | |
Tradename and domain name | 2,238 | 2,215 | |
Indefinite Intangible Assets, Net, Total | 106,803 | 118,233 | |
Finite-Lived Intangible Assets, Net, Total | 400 | 530 | |
Total goodwill and other intangible assets | 107,203 | 118,763 | |
Discounted Leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net, Total | $ 86 | $ 93 | |
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 | $ 182 | $ 362 | |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | |
Finite-Lived Intangible Assets, Net, Total | $ 132 | $ 23 | |
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 |
Schedule of Indefinite-lived, D
Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Definite- Lived Intangibles, Beginning balance | $ 530 | $ 1,139 | |
Indefinite-Lived Intangibles, Beginning balance | 72,547 | 74,812 | |
Goodwill, Beginning balance | 45,686 | 53,630 | |
Definite- Lived Intangibles, Acquisitions | 128 | ||
Indefinite-Lived Intangibles, Acquisitions | 173 | ||
Goodwill, Acquisitions | |||
Definite- Lived Intangibles, Impairment | |||
Indefinite-Lived Intangibles, Impairment | (5,296) | 2,265 | |
Goodwill, Impairment | (6,307) | (7,944) | $ (1,600) |
Indefinite-Lived Intangibles, Impairment | 5,296 | (2,265) | |
Definite- Lived Intangibles, Amortization | (258) | (609) | |
Indefinite-Lived Intangibles, Amortization | |||
Goodwill, Amortization | |||
Definite- Lived Intangibles, Ending balance | 400 | 530 | 1,139 |
Indefinite-Lived Intangibles, Ending balance | 67,424 | 72,547 | 74,812 |
Goodwill, Ending balance | $ 39,379 | $ 45,686 | $ 53,630 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 13,700,000 | $ 8,400,000 | |
Goodwill, Impaired, Accumulated Impairment Loss | 20,600,000 | 14,300,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 138,000 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 60,000 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 11,000 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 8,000 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 7,000 | ||
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 176,000 | ||
Goodwill, Impairment Loss | 6,307,000 | 7,944,000 | $ 1,600,000 |
Seven Reporting Units [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and Intangible Asset Impairment | 7,900,000 | ||
Four Reporting Units [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and Intangible Asset Impairment | 1,600,000 | ||
SOB Licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Impairment Loss | $ 5,300,000 | ||
Goodwill and Intangible Asset Impairment | $ 2,300,000 | $ 178,000 |
Schedule of Long-term Debt (Det
Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Nov. 08, 2021 | Sep. 30, 2021 | Jan. 25, 2021 | Sep. 30, 2020 | Jul. 31, 2019 | Oct. 31, 2018 | Feb. 15, 2018 | Oct. 05, 2016 | Jun. 30, 2015 | ||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 126,796 | $ 142,674 | $ 9,900 | $ 7,200 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 3.99% | 9.00% | 9.00% | 5.25% | 12.00% | |||||
Less unamortized debt discount and issuance costs | (1,628) | (1,239) | |||||||||
Less current portion | (6,434) | (16,304) | |||||||||
Total long-term portion of debt, net | 118,734 | 125,131 | |||||||||
Notes payable One [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 785 | [1] | $ 886 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |||||||||
Notes Payable Two [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 813 | [1] | $ 2,177 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.60% | 9.60% | |||||||||
Notes Payable Three [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 9,715 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||||||||
Notes Payable Four [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 5,787 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |||||||||
Notes Payable Five [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 5,031 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Notes Payable Six [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 1,940 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
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% | |||||||||
Notes Payable Eight [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 11,549 | $ 12,599 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Notes Payable Nine [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 49,830 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||||||||
Notes Payable Ten [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 6,089 | $ 6,395 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.99% | 5.99% | |||||||||
Notes Payable Eleven [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 2,165 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||||
Notes Payable Twelve [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 2,099 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |||||||||
Notes Payable Thirteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 2,861 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |||||||||
Notes Payable Fourteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 582 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Notes Payable Fifteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 6,979 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |||||||||
Notes Payable Sixteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 3,875 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Notes Payable Seventeen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 1,063 | $ 1,167 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |||||||||
Notes Payable Eighteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 1,489 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |||||||||
Notes Payable Nineteen [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 4,066 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||||||
Notes Payable Twenty [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 2,075 | $ 2,125 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.49% | 5.49% | |||||||||
Notes Payable Twenty One [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 3,319 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |||||||||
Notes Payable Twenty Two [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 2,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |||||||||
Notes Payable Twenty Three [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 2,350 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Notes Payable Twenty Four [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 4,790 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Notes Payable Twenty Five [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 2,127 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | 3.99% | |||||||||
Notes Payable Twenty Six [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | [1] | $ 99,146 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |||||||||
Paycheck Protection Program [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Total debt | $ 124 | $ 5,422 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | |||||||||
[1] | These commercial bank debts are guaranteed by the Company’s CEO. See Note 18. |
Schedule of Long-term Debt (D_2
Schedule of Long-term Debt (Details) (Parenthetical) | Jan. 25, 2021 | May 01, 2020 | Oct. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Nov. 08, 2021 | Jul. 31, 2019 | Oct. 31, 2018 | Apr. 24, 2018 | Feb. 20, 2018 | Feb. 15, 2018 | Oct. 05, 2016 |
Short-term Debt [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | 4.00% | 9.00% | 9.00% | 5.25% | 12.00% | ||||||
Debt Instrument, Maturity Date, Description | five years | due on May 1, 2020 | extensions to November 1, 2021 | |||||||||
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 | December 2027 | ||||||||||
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 2027 | |||||||||||
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 Twelve [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||||||||||
Debt Instrument, Maturity Date, Description | September 2035 | 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] | ||||||||||||
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 | 3.99% | 3.99% | ||||||||||
Debt Instrument, Maturity Date, Description | January 2041 | January 2041 | ||||||||||
Notes Payable Twenty Six [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ||||||||||
Debt Instrument, Maturity Date, Description | September 2031 | September 2031 | ||||||||||
Paycheck Protection Program [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | ||||||||||
Debt Instrument, Maturity Date, Description | May 2022 | May 2022 |
Schedule of Long-term Debt Inst
Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 05, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||||
Total debt | $ 126,796 | $ 142,674 | $ 9,900 | $ 7,200 |
Other Assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 8,164 | 8,520 | ||
Stock In Subsidiary [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 14,574 | 25,733 | ||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 1,722 | 21,681 | ||
Real Estate [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 102,336 | $ 86,740 |
Schedule of Maturities of Long-
Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Short-term Debt [Line Items] | |
2022 | $ 6,625 |
2023 | 8,501 |
2024 | 5,094 |
2025 | 5,409 |
2026 | 5,745 |
Thereafter | 95,422 |
Regular Amortization [Member] | |
Short-term Debt [Line Items] | |
2022 | 6,625 |
2023 | 4,825 |
2024 | 5,094 |
2025 | 5,409 |
2026 | 5,745 |
Thereafter | 33,145 |
Balloon Payments [Member] | |
Short-term Debt [Line Items] | |
2022 | |
2023 | 3,676 |
2024 | |
2025 | |
2026 | |
Thereafter | $ 62,277 |
Debt (Details Narrative)
Debt (Details Narrative) | Nov. 08, 2021USD ($) | Oct. 18, 2021USD ($) | Oct. 12, 2021USD ($) | Oct. 11, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 03, 2021USD ($) | Jan. 25, 2021USD ($) | May 08, 2020USD ($) | 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 ($)Days | Jun. 30, 2015USD ($) | Jan. 31, 2012USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Nov. 02, 2018USD ($) | Aug. 14, 2018USD ($) | Dec. 31, 2017USD ($) | May 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 13,669 | $ 13,232 | $ 1,740,000 | $ 625,000 | |||||||||||||||||||||||||||||||||||||||||||
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 | 7 years | 20 years | 3 years | 24 months | 5 years | ||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 250,000 | $ 118,817 | $ 11,905 | $ 5,078 | |||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 3.99% | 5.25% | 12.00% | 9.00% | 9.00% | |||||||||||||||||||||||||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ 10,000,000 | $ 1,150,000 | |||||||||||||||||||||||||||||||||||||||||||||
Monthly Installment Of Settlement Loss | $ 119,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Settlement With Imputed Interest Discount | 9.60% | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 126,796,000 | $ 9,900,000 | $ 7,200,000 | $ 126,796,000 | 142,674,000 | ||||||||||||||||||||||||||||||||||||||||||
Litigation Settlement, Expense | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 2,000,000 | $ 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Feb. 15, 2038 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | $ 2,175,000 | $ 1,690,000 | $ 879,085 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from Bank Debt | $ 4,000,000 | $ 1,900,000 | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | 36 months | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
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 Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Payments of Debt Issuance Costs | $ 25,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Payments to Acquire Land | $ 5,500,000 | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | five years | due on May 1, 2020 | extensions to November 1, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization | 16,396 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense, Debt | $ 0 | 156,000 | $ 597,000 | ||||||||||||||||||||||||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||||||||||||||||||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |||||||||||||||||||||||||||||||||||||||||||||
Fiscal 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 2,900,000 | $ 2,900,000 | |||||||||||||||||||||||||||||||||||||||||||||
Fiscal 2020 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 19,400,000 | 19,400,000 | |||||||||||||||||||||||||||||||||||||||||||||
Fiscal 2021 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 5,300,000 | $ 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 Instrument, Periodic Payment | $ 59,869 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 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 Instrument, Periodic Payment | $ 11,138 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Description | The 10-year note payable had 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 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
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 Instrument, Periodic Payment | $ 17,101 | $ 40,000 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 12.00% | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||
Lender And Affiliates [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Notes Payable | $ 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Twenty Eight Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 9,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 7,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Oct. 1, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 17,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | October 12, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Twenty Eight Investors [Member] | Non-officer Employee One [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Twenty Eight Investors [Member] | Non-officer Employee Two [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 300,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Settlement Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Payment of settlement amount | $ 687,815 | ||||||||||||||||||||||||||||||||||||||||||||||
Litigation Settlement, Expense | $ 195,815 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installment | Days | 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 Instrument, Interest Rate, Stated Percentage | 5.50% | ||||||||||||||||||||||||||||||||||||||||||||||
Second Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 390,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 78,098 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.60% | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Bank Debt | $ 10,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.75% | 5.75% | |||||||||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | until July 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Fixed Interest Rate | 5.45% | 5.45% | |||||||||||||||||||||||||||||||||||||||||||||
12% Unsecured Promissory Notes [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Unsecured Debt | $ 5,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | May 1, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Promissory Notes [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 17,101 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 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 Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Oct. 1, 2027 | ||||||||||||||||||||||||||||||||||||||||||||||
December 2017 Refinancing Loan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Bank Debt | $ 81,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||
December 2017 Refinancing Loan [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||
December 2017 Refinancing Loan [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||||||||||||||||||||||||||||||||||||||
First Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 442,058 | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Bank Debt | $ 62,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | first five years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount 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 Instrument, Periodic Payment | $ 100,062 | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Bank Debt | $ 8,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.75% | 5.75% | |||||||||||||||||||||||||||||||||||||||||||||
Fixed interest maturity description | until August 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative, 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 Instrument, Periodic Payment | $ 53,084 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Description | 72 months | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, 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 Instrument, Maturity Date | Aug. 20, 2029 | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Bank Debt | $ 4,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Description | During the first 18 months of the construction loan, the Company made 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 | ||||||||||||||||||||||||||||||||||||||||||||||
12% Unsecured Promissory Notes [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, 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 One [Member] | Twenty Eight Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable, Related Parties, Current | 500,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Note Two [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 200,000 | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||
Note exchange amount | 100,000 | 100,000 | |||||||||||||||||||||||||||||||||||||||||||||
Note Two [Member] | Twenty Eight Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable, Related Parties, Current | $ 150,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
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 Instrument, Interest Rate, Stated Percentage | 7.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | extended to and fully paid off in February 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Seller Two Notes Payable [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 5,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 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 Instrument, Periodic Payment | $ 15,118 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.49% | ||||||||||||||||||||||||||||||||||||||||||||||
One-Year Bank Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 29,571 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.10% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Description | 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 Instrument, Interest Rate, Stated Percentage | 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 Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Ten Year Note Payable [Member] | Private Lender [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 57,388 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | the Company restructured the note with a private lender by executing a 12% 10-year note payable | ||||||||||||||||||||||||||||||||||||||||||||||
Refinancing Loan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 74,515 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 5,200,000 | $ 9,900,000 | |||||||||||||||||||||||||||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 25,400 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | 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 | ||||||||||||||||||||||||||||||||||||||||||||||
Ten PPP Loans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 5,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Description | All of the notices received forgave 100% of each of the 11 PPP loans totaling the amount of $5.3 million | ||||||||||||||||||||||||||||||||||||||||||||||
Paycheck Protection Program Loan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 124,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense, Debt | 85,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Remaining unforgiven portion, principal amount | $ 41,000 | $ 41,000 | $ 41,000 | ||||||||||||||||||||||||||||||||||||||||||||
September Two Thousand And Twenty One Refinancing Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 668,051 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |||||||||||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 85,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Unsecured Debt | 12,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 99,100,000 | $ 99,100,000 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.25% | 5.25% | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Payments of Debt Issuance Costs | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | five years | ||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense, Debt | $ 103,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Debt Issuance Costs | $ 567,000 | ||||||||||||||||||||||||||||||||||||||||||||||
First Promissory Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 11,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Frequency of Periodic Payment | 120 equal monthly payments | ||||||||||||||||||||||||||||||||||||||||||||||
Perodic payment | $ 122,123 | ||||||||||||||||||||||||||||||||||||||||||||||
Second Promissory Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 8,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Frequency of Periodic Payment | 240 equal monthly payments | ||||||||||||||||||||||||||||||||||||||||||||||
Perodic payment | $ 57,314 | ||||||||||||||||||||||||||||||||||||||||||||||
Third Promissory Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Perodic payment | $ 8,086 | ||||||||||||||||||||||||||||||||||||||||||||||
Fourth Promissory Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Frequency of Periodic Payment | 240 equal monthly payments | ||||||||||||||||||||||||||||||||||||||||||||||
Perodic payment | $ 7,215 | ||||||||||||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 2.00% | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Bank Lender [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | New Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Construction Loan Payable [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.50% | 5.20% | ||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | Bank Lender [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 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 Instrument, Interest Rate, Stated Percentage | 5.90% | ||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Floor [Member] | Construction Loan Payable [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||
U.S.Treasury Rate [Member] | First Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.50% | 3.50% | |||||||||||||||||||||||||||||||||||||||||||||
Floor Rate [Member] | Bank Lender [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.95% | |||||||||||||||||||||||||||||||||||||||||||||
Floor Rate [Member] | One-Year Bank Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Prime Rate [Member] | One-Year Bank Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 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 Instrument, Periodic Payment | $ 12,256 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||||||||||||||||||||||||||||||||||||||||||||
Silver City [Member] | Prime Plus [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Notes [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 11 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 53,110 | ||||||||||||||||||||||||||||||||||||||||||||||
Scarlett's Acquisition [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 3,000,000 | $ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
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 Instrument, Interest Rate, Stated Percentage | 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 Instrument, Periodic Payment | $ 168,343 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 15,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Kappa, Illinois [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 20,276 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt amortization period, description | five-year | ||||||||||||||||||||||||||||||||||||||||||||||
Kappa, Illinois [Member] | Seller Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Chicago Club [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | May 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Chicago Club [Member] | Bank Lender [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Related Party Debt | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Chicago Club [Member] | Seller Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | $ 4,500,000 | $ 4,500,000 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 6 years | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% |
Schedule of Income Tax Expense
Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 4,598 | $ 215 | $ 1,886 |
State and local | 644 | 560 | 1,037 |
Total current income tax expense | 5,242 | 775 | 2,923 |
Federal | (161) | (1,248) | 913 |
State and local | (1,092) | (20) | (92) |
Total deferred income tax expense (benefit) | (1,253) | (1,268) | 821 |
Total income tax expense (benefit) | $ 3,989 | $ (493) | $ 3,744 |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax expense (benefit) | $ 7,169 | $ (1,429) | $ 5,080 |
State income taxes, net of federal benefit | 716 | 253 | 672 |
Permanent differences | (434) | 395 | 45 |
Change in state tax rate | (804) | ||
Change in valuation allowance | (632) | 1,273 | |
Tax credits | (1,207) | (945) | (900) |
Other | (819) | (40) | (1,153) |
Total income tax expense (benefit) | $ 3,989 | $ (493) | $ 3,744 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Income Tax Disclosure [Abstract] | |||
Patron tax | $ 349 | ||
Capital loss carryforwards | 899 | 1,263 | |
Net operating loss carryforwards | 664 | ||
Other | 247 | 2,046 | |
Valuation allowance | (641) | $ (462,000) | (1,273) |
 Net deferred tax assets | 1,169 | 2,385 | |
Intangibles | (12,174) | (14,106) | |
Property and equipment | (8,132) | (8,669) | |
 Deferred tax liabilities | (20,306) | (22,775) | |
Net deferred tax liability | $ (19,137) | $ (20,390) |
Schedule of Uncertain Tax Posit
Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 165 | ||
Additions for tax positions of prior years | |||
Decrease related to settlements with taxing authorities | |||
Reduction due to lapse from closed examination | (165) | ||
Balance at end of year |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | May 08, 2020 | Mar. 27, 2020 | Dec. 14, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Deferred Tax Liabilities, Net | $ 17,100,000 | $ 14,900,000 | ||||
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. | |||||
Interest Expense, Debt | $ 0 | $ 156,000 | $ 597,000 | |||
Ten PPP Loans [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Debt Instrument, Description | All of the notices received forgave 100% of each of the 11 PPP loans totaling the amount of $5.3 million | |||||
PPP Loan [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Debt Instrument, Decrease, Forgiveness | $ 124,000 | |||||
Interest Expense, Debt | 85,000 | |||||
Paycheck Protection Program Loan [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Interest Expense, Debt | $ 85,000 | |||||
[custom:DebtInstrumentRemainingUnforgivenFaceAmount-0] | $ 41,000 | $ 41,000 | ||||
Ten Restaurant Subsidiaries [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 4,200,000 | |||||
Ten Restaurant Subsidiaries [Member] | Minimum [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 271,000 | |||||
Ten Restaurant Subsidiaries [Member] | Maximum [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 579,000 | |||||
Shared Services Subsidiary [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 1,100,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Jun. 03, 2021 | Apr. 10, 2014 | Apr. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Loss Contingencies [Line Items] | |||||||||
Patron tax amount agreed to pay | $ 10,000,000 | ||||||||
Monthly installment of settlement loss | $ 119,000 | ||||||||
Patron tax on monthly basis per customer | $ 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 | |||||||
Litigation settlement, expense | $ 1,000,000 | ||||||||
Settlement liabilities, current | $ 813,000 | $ 2,200,000 | |||||||
Loss contingency, damages sought, value | $ 10,000,000 | 1,150,000 | |||||||
Appeal process amount | 690,000 | ||||||||
Settlement fund desposit registry | 705,876 | ||||||||
Remaining amount of wire transfer | $ 294,124 | ||||||||
Payments for legal settlements | 1,300,000 | 174,000 | $ 225,000 | ||||||
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 | ||||||||
Settlement amount net of interest | $ 8,200 | ||||||||
Settlement of Lawsuits [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrued liabilities | $ 378,000 | $ 100,000 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | Oct. 18, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of stock retired, shares | 516,102 | 128,040 | ||||
Number of stock retired, value | $ 9.5 | $ 2.9 | ||||
Dividends per share | $ 0.04 | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.04 | |
Aggregate amount of dividend | $ 1.4 | $ 1.3 | $ 1.3 | |||
Number of common stock purchased | 74,659 | |||||
Number of common shares purchased, value | $ 1.8 | |||||
Subsequent Event [Member] | Common Stock [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of shares an acquisition | 500,000 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Retirement Plan | |||
Percentage of employee's contribution | 3.00% | ||
Expenses related to contributions to plan | $ 209,000 | $ 171,000 | $ 164,000 |
Schedule of Business Insurance
Schedule of Business Insurance Recoveries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Insurance receivable | $ 185 | $ 191 | |
Business interruption | 176 | $ 484 | |
Business interruption | (176) | (484) | |
Net property insurance claims | (1,337) | 596 | (284) |
Proceeds from business interruption insurance claims | 106 | 384 | 100 |
Proceeds from property insurance claims | 1,152 | 945 | 100 |
Accounts Receivable [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Insurance receivable | $ 186 | $ 191 | $ 1,197 |
Insurance Recoveries (Details N
Insurance Recoveries (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unusual or Infrequent Items, or Both [Abstract] | |||
Net property insurance claims | $ 88,000 | $ 728,000 | $ 629,000 |
Schedule of Allocation of Fair
Schedule of Allocation of Fair Values Assigned to Assets at Acquisition (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 05, 2018 | Nov. 01, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 39,379 | $ 45,686 | $ 53,630 | ||
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 | ||||
Goodwill | 9,677 | ||||
Net assets | $ 15,000 |
Schedule of Unaudited Pro Forma
Schedule of Unaudited Pro Forma Combined Results of Operations (Details) | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Business Combination and Asset Acquisition [Abstract] | |
Pro forma revenues | $ 217,996 |
Pro forma net income attributable to RCIHH common stockholders | $ 25,290 |
Pro forma earnings per share - basic and diluted | $ / shares | $ 2.66 |
Pro forma weighted average number of common shares outstanding - basic and diluted | shares | 9,500 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Details Narrative) | Nov. 08, 2021USD ($) | Nov. 08, 2021USD ($) | May 07, 2021USD ($) | Apr. 07, 2021USD ($) | Mar. 10, 2021USD ($)ft² | Jan. 25, 2021USD ($) | Aug. 06, 2020USD ($) | May 22, 2020USD ($) | May 01, 2020USD ($) | Apr. 01, 2020USD ($) | Jul. 23, 2019USD ($) | Mar. 21, 2019USD ($) | Jan. 24, 2019USD ($) | Nov. 05, 2018USD ($) | Nov. 01, 2018USD ($) | Sep. 25, 2018USD ($) | Sep. 17, 2018 | Sep. 06, 2018USD ($) | Aug. 15, 2018 | Apr. 24, 2018 | Dec. 14, 2017USD ($) | Oct. 05, 2016USD ($) | Oct. 18, 2021USD ($)shares | Sep. 21, 2021USD ($) | Mar. 22, 2021USD ($) | Jan. 26, 2021USD ($) | Dec. 28, 2020USD ($) | Oct. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Oct. 31, 2018USD ($) | Sep. 30, 2022USD ($) | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Nov. 02, 2018USD ($) | Feb. 15, 2018 |
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Notes payable | $ 13,669 | $ 13,669 | $ 13,232 | $ 1,740,000 | $ 625,000 | ||||||||||||||||||||||||||||||||||
Debt interest rate | 4.00% | 4.00% | 3.99% | 12.00% | 9.00% | 9.00% | 5.25% | ||||||||||||||||||||||||||||||||
Revenues | $ 217,996 | ||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | five years | due on May 1, 2020 | extensions to November 1, 2021 | ||||||||||||||||||||||||||||||||||||
Total sales price | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||
Acquisition cash paid | 375,000 | ||||||||||||||||||||||||||||||||||||||
Balloon payment | 250,000 | ||||||||||||||||||||||||||||||||||||||
Installment amount | $ 250,000 | $ 118,817 | $ 11,905 | 5,078 | |||||||||||||||||||||||||||||||||||
Operating lease payments | $ 36,000 | 3,325,000 | $ 3,244,000 | ||||||||||||||||||||||||||||||||||||
Operating lease term | 10 years | ||||||||||||||||||||||||||||||||||||||
Operating lease amount | $ 48,000 | 4,623,000 | 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 | $ 475,000 | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||
Gain on sale transaction | $ 879,000 | ||||||||||||||||||||||||||||||||||||||
Debt principal amount | $ 1,000,000 | $ 1,000,000 | $ 2,175,000 | $ 1,690,000 | $ 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 | $ 2,250,000 | $ 690,000 | |||||||||||||||||||||||||||||||||||
Gain loss on sale of property | 26,000 | 16,000 | 54,000 | 9,000 | |||||||||||||||||||||||||||||||||||
Repayments of debt | $ 160,500 | $ 217,000 | $ 1,200,000 | 666,000 | |||||||||||||||||||||||||||||||||||
Preliminary gain on the sale transaction | $ 383,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 7 years | 20 years | 3 years | 24 months | 5 years | ||||||||||||||||||||||||||||||||||
Area of Land | ft² | 57,000 | ||||||||||||||||||||||||||||||||||||||
Carrying value of assets | 239,151,000 | 240,328,000 | |||||||||||||||||||||||||||||||||||||
Interest expense | $ 9,992,000 | $ 9,811,000 | 10,209,000 | ||||||||||||||||||||||||||||||||||||
Common stock issued as partial consideration | shares | 500,000 | ||||||||||||||||||||||||||||||||||||||
Forecast [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Acquisition-related expenses included in pro forma net income and pro forma earnings per share | $ 173,000 | ||||||||||||||||||||||||||||||||||||||
Pittsburgh [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 15,000,000 | ||||||||||||||||||||||||||||||||||||||
Notes payable | 7,500,000 | ||||||||||||||||||||||||||||||||||||||
Proceeds from short term note payable | 2,000,000 | ||||||||||||||||||||||||||||||||||||||
Acquisition-related expenses | 134,000 | ||||||||||||||||||||||||||||||||||||||
Revenues | $ 4,600,000 | ||||||||||||||||||||||||||||||||||||||
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] | |||||||||||||||||||||||||||||||||||||||
Notes payable | $ 1,150,000 | ||||||||||||||||||||||||||||||||||||||
Debt interest rate | 8.00% | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Centerville [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Operating lease amount | $ 48,000 | ||||||||||||||||||||||||||||||||||||||
Payment to acquire property | $ 500,000 | ||||||||||||||||||||||||||||||||||||||
Arlington [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Payment to acquire property | $ 2,900,000 | ||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 754,000 | ||||||||||||||||||||||||||||||||||||||
Bombshells Houston [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Payment to acquire property | $ 1,040,000 | ||||||||||||||||||||||||||||||||||||||
Bombshells Pearland [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Payment to acquire property | $ 1,275,000 | ||||||||||||||||||||||||||||||||||||||
Properties Held For Sale [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 3,100,000 | ||||||||||||||||||||||||||||||||||||||
Gain loss on sale of property | 657,000 | ||||||||||||||||||||||||||||||||||||||
Repayments of debt | 2,000,000 | ||||||||||||||||||||||||||||||||||||||
Carrying value of assets | $ 2,300,000 | ||||||||||||||||||||||||||||||||||||||
Newburgh [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Payment to acquire property | 3,500,000 | ||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||
Bank Lender [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 5.95% | ||||||||||||||||||||||||||||||||||||||
Installment amount | $ 11,138 | ||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,550,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 12 years | 10 years | |||||||||||||||||||||||||||||||||||||
Employee [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 375,000 | ||||||||||||||||||||||||||||||||||||||
Gain loss on sale of property | $ 20,000 | ||||||||||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||||||||||
Twenty Year Promissory Note [Member] | Arlington [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 3.99% | ||||||||||||||||||||||||||||||||||||||
Proceeds from loan | $ 2,175,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 20 years | ||||||||||||||||||||||||||||||||||||||
28 Private Lender Group Notes and 4 Seller Financed Notes [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Interest expense | $ 3,300,000 | ||||||||||||||||||||||||||||||||||||||
Seven Year Promissory Note [Member] | Newburgh [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Debt interest rate | 4.00% | 4.00% | |||||||||||||||||||||||||||||||||||||
Installment amount | $ 13,669 | ||||||||||||||||||||||||||||||||||||||
Proceeds from loan | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 7 years | ||||||||||||||||||||||||||||||||||||||
Chicago Club [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 10,500,000 | ||||||||||||||||||||||||||||||||||||||
Notes payable | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | ||||||||||||||||||||||||||||||||||||||
Acquisition-related expenses | 37,000 | ||||||||||||||||||||||||||||||||||||||
Revenues | 5,000,000 | ||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | May 2019 | ||||||||||||||||||||||||||||||||||||||
Business acquisition, description | Noncompete is amortized on a straight-line basis over five years from acquisition date. | ||||||||||||||||||||||||||||||||||||||
Chicago Club [Member] | Bank Lender [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Proceeds from related party debt | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||
Chicago Club [Member] | 6-Year Seller Financed Note [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Proceeds from short term note payable | $ 4,500,000 | ||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7.00% | ||||||||||||||||||||||||||||||||||||||
Philadelphia, Nightclub [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Eleven Gentlemens Clubs [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Pro forma acquisition costs | $ 174,000 | ||||||||||||||||||||||||||||||||||||||
Eleven Gentlemens Clubs [Member] | Selling, General and Administrative Expenses [Member] | Forecast [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Acquisition-related expenses included in pro forma net income and pro forma earnings per share | $ 173,000 | ||||||||||||||||||||||||||||||||||||||
Eleven Gentlemens Clubs [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 88,000,000 | ||||||||||||||||||||||||||||||||||||||
Acquisition-related expenses | 347,000 | ||||||||||||||||||||||||||||||||||||||
Payments to acquired business | 36,800,000 | ||||||||||||||||||||||||||||||||||||||
Total consideration fair value | $ 88,400,000 | ||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 500,000 | ||||||||||||||||||||||||||||||||||||||
Eleven Gentlemens Clubs [Member] | Seller-Finanaced Notes [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 21,200,000 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 7 Months Ended | 12 Months Ended | 19 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||
Revenues | $ 54,941,000 | [1] | $ 57,860,000 | [1] | $ 44,059,000 | [1] | $ 38,398,000 | [1] | $ 28,786,000 | [2] | $ 14,721,000 | [2] | $ 40,426,000 | [2] | $ 48,394,000 | [2] | $ 45,183,000 | $ 47,027,000 | $ 44,826,000 | $ 44,023,000 | $ 195,258,000 | $ 132,327,000 | $ 181,059,000 | ||||||
Income from operations | 3,617,000 | [1] | 18,507,000 | [1] | 9,841,000 | [1] | 6,583,000 | [1] | 192,000 | [2] | (4,657,000) | [2] | (2,475,000) | [2] | 9,686,000 | [2] | 2,429,000 | [3] | 9,974,000 | [3] | 11,166,000 | [3] | 11,132,000 | [3] | 38,548,000 | 2,746,000 | 34,701,000 | ||
Net income attributable to RCIHH shareholders | $ 2,300,000 | [1] | $ 12,302,000 | [1] | $ 6,091,000 | [1] | $ 9,643,000 | [1] | $ (2,793,000) | [2] | $ (5,474,000) | [2] | $ (3,452,000) | [2] | $ 5,634,000 | [2] | $ 458,000 | [3] | $ 5,638,000 | [3] | $ 6,735,000 | [3] | $ 7,463,000 | [3] | $ 30,336,000 | $ (6,085,000) | $ 20,294,000 | ||
Earnings per share: Basic and diluted | $ 0.26 | [1] | $ 1.37 | [1] | $ 0.68 | [1] | $ 1.07 | [1] | $ (0.31) | [2] | $ (0.60) | [2] | $ (0.37) | [2] | $ 0.60 | [2] | $ 0.05 | [3] | $ 0.59 | [3] | $ 0.70 | [3] | $ 0.77 | [3] | $ 3.37 | $ (0.66) | $ 2.10 | ||
Weighted average number of common shares outstanding: Basic and diluted | 9,000 | 9,000 | 9,000 | 9,019 | 9,124 | 9,125 | 9,225 | 9,322 | 9,616 | 9,620 | 9,679 | 9,713 | 9,005 | 9,199 | 9,657 | ||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 380,000,000 | $ 4,900,000 | $ 5,298,000 | ||||||||||||||||||||||||||
Asset impairment charge | $ 11,900,000 | $ 271,000,000 | 1,400,000 | $ 1,400,000 | $ 982,000 | $ 8,200,000 | $ 13,600,000 | 6,000,000 | $ 10,600,000 | ||||||||||||||||||||
Net gain loss on insurance | 1,000,000 | $ 12,000,000 | 197,000,000 | 1,300,000 | $ 800,000 | ||||||||||||||||||||||||
Deferred tax valuation allowance | $ 641,000 | $ 462,000,000 | $ 1,273,000 | $ 641,000 | $ 1,273,000 | $ 1,273,000 | |||||||||||||||||||||||
[1] | Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($ | ||||||||||||||||||||||||||||
[2] | 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% | ||||||||||||||||||||||||||||
[3] | 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)% |
Schedule of Quarterly Financi_2
Schedule of Quarterly Financial Information (Details) (Parenthetical) - USD ($) | 3 Months Ended | 7 Months Ended | 12 Months Ended | 19 Months Ended | |||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 380,000,000 | $ 4,900,000 | $ 5,298,000 | ||||||||||||||
Effective Income Tax Rate Reconciliation, Percent | (210.40%) | 24.40% | 24.30% | (4.20%) | 36.30% | (20.50%) | (28.90%) | 22.00% | (371.70%) | 24.10% | 22.30% | 8.40% | |||||
Asset impairment charge | $ 11,900,000 | $ 271,000,000 | $ 1,400,000 | $ 1,400,000 | $ 982,000 | $ 8,200,000 | $ 13,600,000 | 6,000,000 | $ 10,600,000 | ||||||||
Valuation allowance | $ 1,300,000 | 1,300,000 | $ 1,300,000 | ||||||||||||||
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 | 714,000 | 777,000 | 2,966,000 | ||||||||||
Net gain loss on insurance | $ 1,000,000 | $ 12,000,000 | $ 197,000,000 | 1,300,000 | 800,000 | ||||||||||||
Gain (Loss) Related to Litigation Settlement | $ 900,000 | $ 100,000 | $ 1,337,000 | $ (596,000) | $ 288,000 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | [1] | Mar. 31, 2021 | [1] | Dec. 31, 2020 | [1] | Sep. 30, 2020 | Jun. 30, 2020 | [2] | Mar. 31, 2020 | [2] | Dec. 31, 2019 | [2] | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||
Total revenues | $ 54,941,000 | [1] | $ 57,860,000 | $ 44,059,000 | $ 38,398,000 | $ 28,786,000 | [2] | $ 14,721,000 | $ 40,426,000 | $ 48,394,000 | $ 45,183,000 | $ 47,027,000 | $ 44,826,000 | $ 44,023,000 | $ 195,258,000 | $ 132,327,000 | $ 181,059,000 | |||||||||||
Income (loss) from operations | 3,617,000 | [1] | $ 18,507,000 | $ 9,841,000 | $ 6,583,000 | 192,000 | [2] | $ (4,657,000) | $ (2,475,000) | $ 9,686,000 | $ 2,429,000 | [3] | $ 9,974,000 | [3] | $ 11,166,000 | [3] | $ 11,132,000 | [3] | 38,548,000 | 2,746,000 | 34,701,000 | |||||||
Capital expenditures | 13,511,000 | 5,736,000 | 20,708,000 | |||||||||||||||||||||||||
Depreciation and amortization | 8,238,000 | 8,836,000 | 9,072,000 | |||||||||||||||||||||||||
Total assets | 364,619,000 | 360,933,000 | 364,619,000 | 360,933,000 | $ 354,756,000 | |||||||||||||||||||||||
Nightclubs [Member] | ||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||
Total revenues | 137,348,000 | 88,373,000 | 148,606,000 | |||||||||||||||||||||||||
Income (loss) from operations | 43,815,000 | 13,056,000 | 50,724,000 | |||||||||||||||||||||||||
Capital expenditures | 6,890,000 | 3,477,000 | 6,645,000 | |||||||||||||||||||||||||
Depreciation and amortization | 5,494,000 | 5,799,000 | 6,401,000 | |||||||||||||||||||||||||
Total assets | 280,561,000 | 277,960,000 | 280,561,000 | 277,960,000 | 274,071,000 | |||||||||||||||||||||||
Bombshells [Member] | ||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||
Total revenues | 56,621,000 | 43,215,000 | 30,828,000 | |||||||||||||||||||||||||
Income (loss) from operations | 13,264,000 | 9,237,000 | 2,307,000 | |||||||||||||||||||||||||
Capital expenditures | 5,895,000 | 2,114,000 | 10,457,000 | |||||||||||||||||||||||||
Depreciation and amortization | 1,824,000 | 1,785,000 | 1,374,000 | |||||||||||||||||||||||||
Total assets | 52,073,000 | 48,991,000 | 52,073,000 | 48,991,000 | 44,144,000 | |||||||||||||||||||||||
Other [Member] | ||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||
Total revenues | 1,289,000 | 739,000 | 1,625,000 | |||||||||||||||||||||||||
Income (loss) from operations | 35,000 | (614,000) | (309,000) | |||||||||||||||||||||||||
Capital expenditures | 157,000 | 27,000 | ||||||||||||||||||||||||||
Depreciation and amortization | 87,000 | 415,000 | 416,000 | |||||||||||||||||||||||||
Total assets | 1,573,000 | 1,269,000 | 1,573,000 | 1,269,000 | 1,773,000 | |||||||||||||||||||||||
General Corporate [Member] | ||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||
Income (loss) from operations | (18,566,000) | (18,933,000) | (18,021,000) | |||||||||||||||||||||||||
Capital expenditures | 569,000 | 145,000 | 3,579,000 | |||||||||||||||||||||||||
Depreciation and amortization | 833,000 | 837,000 | $ 881,000 | |||||||||||||||||||||||||
Total assets | $ 30,412,000 | $ 32,713,000 | $ 30,412,000 | $ 32,713,000 | $ 34,768,000 | |||||||||||||||||||||||
[1] | Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($ | |||||||||||||||||||||||||||
[2] | 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% | |||||||||||||||||||||||||||
[3] | 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)% |
Segment Information (Details Na
Segment Information (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2021 | [1] | Jun. 30, 2021 | [1] | Mar. 31, 2021 | [1] | Dec. 31, 2020 | [1] | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [2] | Mar. 31, 2020 | [2] | Dec. 31, 2019 | [2] | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Total revenues | $ 54,941,000 | $ 57,860,000 | $ 44,059,000 | $ 38,398,000 | $ 28,786,000 | $ 14,721,000 | $ 40,426,000 | $ 48,394,000 | $ 45,183,000 | $ 47,027,000 | $ 44,826,000 | $ 44,023,000 | $ 195,258,000 | $ 132,327,000 | $ 181,059,000 | ||||||||
Nightclubs [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Total revenues | 137,348,000 | 88,373,000 | 148,606,000 | ||||||||||||||||||||
Nightclubs [Member] | Intercompany Rental Revenue [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Total revenues | 11,500,000 | 11,100,000 | 10,000,000 | ||||||||||||||||||||
Other Segment [Member] | Intercompany Sales [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Total revenues | $ 141,000 | $ 70,000 | $ 140,000 | ||||||||||||||||||||
[1] | Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($ | ||||||||||||||||||||||
[2] | 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% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Nov. 01, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 08, 2021 | Oct. 12, 2021 | Jan. 25, 2021 | Oct. 31, 2020 | Jul. 31, 2019 |
Related Party Transaction [Line Items] | |||||||||
Indebtedness, net of debt discount and issuance costs | $ 99,700,000 | $ 83,800,000 | |||||||
Due from Related Parties | $ 2,350,000 | ||||||||
Debt Instrument, Face Amount | $ 1,000,000 | $ 2,175,000 | $ 1,690,000 | $ 879,085 | |||||
Note One [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt Instrument, Face Amount | 450,000 | ||||||||
Note Two [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt Instrument, Face Amount | 200,000 | ||||||||
Twenty Eight Investors [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 17,000,000 | ||||||||
Twenty Eight Investors [Member] | Note One [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Notes Payable, Related Parties, Current | 500,000,000,000 | ||||||||
Twenty Eight Investors [Member] | Note Two [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Notes Payable, Related Parties, Current | $ 150,000,000,000 | ||||||||
Ed Anakar and Nourdean Anakar [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Proceeds from Related Party Debt | 500,000 | ||||||||
Allen Chhay and Bradley Chhay [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Proceeds from Related Party Debt | $ 100,000 | ||||||||
Sherwood Forest Creations, LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related Party Transaction, Amounts of Transaction | 118,000 | 59,000 | $ 134,000 | ||||||
Nottingham Creations and Sherwood Forest Creations LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Due from related parties | 12,205 | 0 | |||||||
TW Mechanical LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related Party Transaction, Amounts of Transaction | 425,000 | 62,000 | 47,000 | ||||||
Due from related parties | 7,500 | 5,700 | |||||||
TW Mechanical LLC [Member] | Third-Party General Contractor [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related Party Transaction, Amounts of Transaction | $ 0 | $ 19,000 | $ 452,000 |
Schedule of Future Maturities o
Schedule of Future Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
October 2021 - September 2022 | $ 3,296 |
October 2022 - September 2023 | 3,173 |
October 2023 - September 2024 | 3,177 |
October 2024 - September 2025 | 3,245 |
October 2025 - September 2026 | 3,304 |
Thereafter | 20,571 |
Future maturities of lease liabilities | 36,766 |
Principal Payments [Member] | |
Lessee, Lease, Description [Line Items] | |
October 2021 - September 2022 | 1,780 |
October 2022 - September 2023 | 1,764 |
October 2023 - September 2024 | 1,877 |
October 2024 - September 2025 | 2,062 |
October 2025 - September 2026 | 2,251 |
Thereafter | 16,196 |
Future maturities of lease liabilities | 25,930 |
Interest Payments [Member] | |
Lessee, Lease, Description [Line Items] | |
October 2021 - September 2022 | 1,516 |
October 2022 - September 2023 | 1,409 |
October 2023 - September 2024 | 1,300 |
October 2024 - September 2025 | 1,183 |
October 2025 - September 2026 | 1,053 |
Thereafter | 4,375 |
Future maturities of lease liabilities | $ 10,836 |
Schedule of Lease Expense (Deta
Schedule of Lease Expense (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | |||
Operating lease expense - fixed payments | $ 36,000 | $ 3,325,000 | $ 3,244,000 |
Variable lease expense | 349,000 | 381,000 | |
Short-term equipment and other lease expense (includes $298 and $315 recorded in advertising and marketing for fiscal 2021 and 2020, respectively, and $397 and $372 recorded in repairs and maintenance, respectively; see Note 5) | 955,000 | 1,122,000 | |
Sublease income | (6,000) | (9,000) | |
Total lease expense, net | $ 48,000 | 4,623,000 | 4,738,000 |
Operating cash outflows from operating leases | $ 4,522,000 | $ 4,562,000 | |
Weighted average remaining lease term | 12 years | 13 years | |
Weighted average discount rate | 6.00% | 6.10% |
Schedule of Lease Expense (De_2
Schedule of Lease Expense (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Advertising and marketing | $ 6,676 | $ 5,367 | $ 8,392 |
Repairs and maintenance | 2,767 | 2,289 | $ 2,980 |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Advertising and marketing | 298 | 315 | |
Repairs and maintenance | $ 397 | $ 372 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Lease expense | $ 48,000 | $ 4,623,000 | $ 4,738,000 | |
Lease expense under ASC 840 | $ 3,900,000 | |||
Impairment of operating lease right-of-use assets | $ 0 | 104,000 | 0 | |
Chief Executive Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Lease expense | $ 19,500 | $ 78,000 | ||
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, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Allowance For Doubtful Accounts Receivable [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | $ 261 | $ 101 | ||
Charged to costs and expenses | [1] | 215 | 347 | 241 |
Deductions | [2] | (94) | (187) | (140) |
Balance at end of year | 382 | 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 | 182 | |||
Charged to costs and expenses | [1] | (80) | 602 | |
Deductions | [2] | (420) | ||
Balance at end of year | 102 | 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] | $ 1,273 | ||
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. |