RCI Hospitality (RICK) 10-Q 9 Aug 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-13992
Entity Registrant Name	RCI HOSPITALITY HOLDINGS, INC.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	76-0458229
Entity Address, Address Line One	10737 Cutten Road
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77066
City Area Code	(281)
Local Phone Number	397-6730
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	RICK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,419,785
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Central Index Key	0000935419

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Current assets
Cash and cash equivalents	$ 23,584	$ 35,980
Accounts receivable, net	7,433	8,510
Current portion of notes receivable	244	230
Inventories	4,571	3,893
Prepaid expenses and other current assets	5,028	1,499
Assets held for sale	0	1,049
Total current assets	40,860	51,161
Property and equipment, net	277,530	224,615
Operating lease right-of-use assets, net	35,683	37,048
Notes receivable, net of current portion	4,507	4,691
Goodwill	78,684	67,767
Intangibles, net	181,262	144,049
Other assets	1,581	1,407
Total assets	620,107	530,738
Current liabilities
Accounts payable	7,762	5,482
Accrued liabilities	17,732	11,328
Current portion of debt obligations, net	23,824	11,896
Current portion of operating lease liabilities	2,923	2,795
Total current liabilities	52,241	31,501
Deferred tax liability, net	30,146	30,562
Debt, net of current portion and debt discount and issuance costs	219,999	190,567
Operating lease liabilities, net of current portion	35,941	36,001
Other long-term liabilities	355	349
Total liabilities	338,682	288,980
Commitments and contingencies (Note 10)
Equity
Preferred stock, $0.10 par value per share; 1,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value per share; 20,000,000 shares authorized; 9,430,225 and 9,231,725 shares issued and outstanding as of June 30, 2023 and September 30, 2022, respectively	94	92
Additional paid-in capital	82,091	67,227
Retained earnings	199,425	173,950
Total RCIHH stockholders’ equity	281,610	241,269
Noncontrolling interests	(185)	489
Total equity	281,425	241,758
Total liabilities and equity	$ 620,107	$ 530,738

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Sep. 30, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares, issued (in shares)	9,430,225	9,231,725
Common stock, shares outstanding (in shares)	9,430,225	9,231,725

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues
Total revenues	$ 77,055	$ 70,714	$ 218,540	$ 196,242
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	10,529	9,182	28,656	26,833
Salaries and wages	20,578	17,387	58,682	50,422
Selling, general and administrative	23,803	19,572	68,561	56,495
Depreciation and amortization	4,041	2,565	11,108	7,636
Other charges, net	2,589	1,501	5,693	1,357
Total operating expenses	61,540	50,207	172,700	142,743
Income from operations	15,515	20,507	45,840	53,499
Other income (expenses)
Interest expense	(4,316)	(3,028)	(11,680)	(8,496)
Interest income	87	103	268	321
Non-operating gains, net	0	127	0	211
Income before income taxes	11,286	17,709	34,428	45,535
Income tax expense	2,269	3,767	7,447	10,056
Net income	9,017	13,942	26,981	35,479
Net loss (income) attributable to noncontrolling interests	68	(40)	74	(50)
Net income attributable to RCIHH common stockholders	$ 9,085	$ 13,902	$ 27,055	$ 35,429
Earnings per share
Basic (in dollars per share)	$ 0.96	$ 1.48	$ 2.91	$ 3.76
Diluted (in dollars per share)	$ 0.96	$ 1.48	$ 2.91	$ 3.76
Weighted average shares used in computing earnings per share
Basic (in shares)	9,430,225	9,389,675	9,308,624	9,428,461
Diluted (in shares)	9,430,225	9,389,675	9,308,624	9,428,461
Dividends per share (in dollars per share)	$ 0.06	$ 0.05	$ 0.17	$ 0.14
Sales of alcoholic beverages
Revenues
Total revenues	$ 34,151	$ 29,738	$ 93,937	$ 83,504
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	6,397	5,177	17,136	14,907
Sales of food and merchandise
Revenues
Total revenues	11,405	11,574	32,757	33,628
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	4,106	3,959	11,429	11,756
Service revenues
Revenues
Total revenues	26,663	25,444	77,916	67,821
Other
Revenues
Total revenues	4,836	3,958	13,930	11,289
Service and other
Cost of goods sold
Total cost of goods sold (exclusive of items shown separately below)	$ 26	$ 46	$ 91	$ 170

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Noncontrolling Interests
Common Stock, Beginning balance (in shares) at Sep. 30, 2021		8,999,910
Beginning balance at Sep. 30, 2021	$ 179,223	$ 90	$ 50,040	$ 129,693	$ 0	$ (600)
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2021					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common shares for business combination (in shares)		500,000
Issuance of common shares for business combination	30,362	$ 5	30,357
Payment of dividends	(380)			(380)
Net income (loss)	10,564			10,575		(11)
Common Stock, Ending balance (in shares) at Dec. 31, 2021		9,499,910
Ending balance at Dec. 31, 2021	219,769	$ 95	80,397	139,888	$ 0	(611)
Treasury Stock, Ending balance (in shares) at Dec. 31, 2021					0
Common Stock, Beginning balance (in shares) at Sep. 30, 2021		8,999,910
Beginning balance at Sep. 30, 2021	179,223	$ 90	50,040	129,693	$ 0	(600)
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2021					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	35,479
Common Stock, Ending balance (in shares) at Jun. 30, 2022		9,286,198
Ending balance at Jun. 30, 2022	231,685	$ 93	68,342	163,800	$ 0	(550)
Treasury Stock, Ending balance (in shares) at Jun. 30, 2022					0
Common Stock, Beginning balance (in shares) at Dec. 31, 2021		9,499,910
Beginning balance at Dec. 31, 2021	219,769	$ 95	80,397	139,888	$ 0	(611)
Treasury Stock, Beginning balance (in shares) at Dec. 31, 2021					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury shares (in shares)					(45,643)
Purchase of treasury shares	(2,845)				$ (2,845)
Canceled treasury shares (in shares)		(45,643)			(45,643)
Canceled treasury shares	0	$ (1)	(2,844)		$ 2,845
Payment of dividends	(474)			(474)
Net income (loss)	10,973			10,952		21
Common Stock, Ending balance (in shares) at Mar. 31, 2022		9,454,267
Ending balance at Mar. 31, 2022	227,423	$ 94	77,553	150,366	$ 0	(590)
Treasury Stock, Ending balance (in shares) at Mar. 31, 2022					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury shares (in shares)					(168,069)
Purchase of treasury shares	(9,212)				$ (9,212)
Canceled treasury shares (in shares)		(168,069)			(168,069)
Canceled treasury shares	0	$ (1)	(9,211)		$ 9,212
Payment of dividends	(468)			(468)
Net income (loss)	13,942			13,902		40
Common Stock, Ending balance (in shares) at Jun. 30, 2022		9,286,198
Ending balance at Jun. 30, 2022	$ 231,685	$ 93	68,342	163,800	$ 0	(550)
Treasury Stock, Ending balance (in shares) at Jun. 30, 2022					0
Common Stock, Beginning balance (in shares) at Sep. 30, 2022	9,231,725	9,231,725
Beginning balance at Sep. 30, 2022	$ 241,758	$ 92	67,227	173,950	$ 0	489
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2022					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury shares (in shares)					(1,500)
Purchase of treasury shares	(98)				$ (98)
Canceled treasury shares (in shares)		(1,500)			(1,500)
Canceled treasury shares	0		(98)		$ 98
Payment of dividends	(462)			(462)
Stock-based compensation	941		941
Share in return of investment by noncontrolling partner	(600)					(600)
Net income (loss)	10,271			10,238		33
Common Stock, Ending balance (in shares) at Dec. 31, 2022		9,230,225
Ending balance at Dec. 31, 2022	$ 251,810	$ 92	68,070	183,726	$ 0	(78)
Treasury Stock, Ending balance (in shares) at Dec. 31, 2022					0
Common Stock, Beginning balance (in shares) at Sep. 30, 2022	9,231,725	9,231,725
Beginning balance at Sep. 30, 2022	$ 241,758	$ 92	67,227	173,950	$ 0	489
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2022					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 26,981
Common Stock, Ending balance (in shares) at Jun. 30, 2023	9,430,225	9,430,225
Ending balance at Jun. 30, 2023	$ 281,425	$ 94	82,091	199,425	$ 0	(185)
Treasury Stock, Ending balance (in shares) at Jun. 30, 2023					0
Common Stock, Beginning balance (in shares) at Dec. 31, 2022		9,230,225
Beginning balance at Dec. 31, 2022	251,810	$ 92	68,070	183,726	$ 0	(78)
Treasury Stock, Beginning balance (in shares) at Dec. 31, 2022					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common shares for business combination (in shares)		200,000
Issuance of common shares for business combination	16,308	$ 2	16,306
Payment of dividends	(553)			(553)
Stock-based compensation	706		706
Net income (loss)	7,693			7,732		(39)
Common Stock, Ending balance (in shares) at Mar. 31, 2023		9,430,225
Ending balance at Mar. 31, 2023	275,964	$ 94	85,082	190,905	$ 0	(117)
Treasury Stock, Ending balance (in shares) at Mar. 31, 2023					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment in fair value of common shares issued for business combination	(3,461)		(3,461)
Payment of dividends	(565)			(565)
Stock-based compensation	470		470
Net income (loss)	$ 9,017			9,085		(68)
Common Stock, Ending balance (in shares) at Jun. 30, 2023	9,430,225	9,430,225
Ending balance at Jun. 30, 2023	$ 281,425	$ 94	$ 82,091	$ 199,425	$ 0	$ (185)
Treasury Stock, Ending balance (in shares) at Jun. 30, 2023					0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 26,981	$ 35,479
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,108	7,636
Impairment of assets	3,293	1,722
Deferred income tax benefit	(790)	(409)
Stock-based compensation	2,117	0
Gain on sale of businesses and assets	(872)	(1,282)
Unrealized loss on equity securities	0	1
Amortization of debt discount and issuance costs	453	199
Gain on debt extinguishment	0	(83)
Noncash lease expense	2,226	1,725
Gain on insurance	(91)	(408)
Doubtful accounts expense on notes receivable	0	753
Changes in operating assets and liabilities:
Accounts receivable	1,480	3,411
Inventories	79	(492)
Prepaid expenses, other current and other assets	(3,602)	(3,271)
Accounts payable, accrued and other liabilities	4,622	1,773
Net cash provided by operating activities	47,004	46,754
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets	2,811	4,611
Proceeds from insurance	91	515
Proceeds from notes receivable	170	127
Payments for property and equipment and intangible assets	(29,919)	(17,173)
Acquisition of businesses, net of cash acquired	(30,200)	(44,302)
Net cash used in investing activities	(57,047)	(56,222)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations, including related party proceeds of $0 and $650, respectively	11,595	35,820
Payments on debt obligations	(11,431)	(10,714)
Purchase of treasury stock	(98)	(12,057)
Payment of dividends	(1,580)	(1,322)
Payment of loan origination costs	(239)	(445)
Share in return of investment by noncontrolling partner	(600)	0
Net cash provided by (used in) financing activities	(2,353)	11,282
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(12,396)	1,814
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	35,980	35,686
CASH AND CASH EQUIVALENTS AT END OF PERIOD	23,584	37,500
CASH PAID DURING PERIOD FOR:
Interest	11,070	7,915
Income taxes	8,931	8,990
Noncash investing and financing transactions:
Debt incurred in connection with acquisition of businesses	32,405	33,200
Debt incurred in connection with purchase of property and equipment	8,476	4,820
Note receivable from sale of property	0	2,700
Issuance of shares of common stock for acquisition of businesses:
Number of shares	200	500
Fair value	12,847	30,362
Adjustment to operating lease right-of-use assets related to new and renewed leases	1,864	21,247
Adjustment to operating lease liabilities related to new and renewed leases	2,163	21,247
Unpaid liabilities on capital expenditures	$ 2,758	$ 1,325

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Cash Flows [Abstract]
Proceeds from related party debt	$ 0	$ 650

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of RCI Hospitality Holdings, Inc. (the “Company,” “RCIHH,” “we,” or “us”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all information and footnotes required by GAAP for complete financial statements. The September 30, 2022 consolidated balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended September 30, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on December 14, 2022. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023. We made certain reclassification adjustments to segment disclosures related to prepaid insurance and goodwill. These assets were acquired by the registrant and presented in Corporate segment but mostly benefit subsidiaries belonging to other reportable segments. Prior year disclosures were also made to conform to current year presentation. There is no impact in consolidated total assets, results of operations, and cash flows in all periods presented. See Note 11 .

Recent Accounting Standards and

Recent Accounting Standards and Pronouncements	9 Months Ended
	Jun. 30, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Standards and Pronouncements	Recent Accounting Standards and Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU amends ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are still evaluating the impact of this ASU but we do not expect it to have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments of this ASU clarify that an entity should measure the fair value of an equity security subject to contractual sale restriction the same way it measures an identical equity security that is not subject to such a restriction. The FASB said the contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not affect its fair value. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. We are still evaluating the impact of this ASU on our consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control. The ASU requires all companies to amortize leasehold improvements associated with common control leases over the asset's useful life to the common control group regardless of the lease term. It also allows private and certain not-for-profit entities to use the written terms and conditions of an agreement to account for common control leases without further assessing the legal enforceability of those terms. The guidance is effective for all entities in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. We are still evaluating the impact of this ASU on our consolidated financial statements.

Current Operating Environment

Current Operating Environment	9 Months Ended
	Jun. 30, 2023
Current Operating Environment [Abstract]
Current Operating Environment	Current Operating Environment Our fiscal 2020 was the period hardest hit by the COVID-19 pandemic caused by 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. In fiscal 2021, our businesses started to recover from the initial effects of the pandemic when government restrictions eased. Stimulus money also flowed to the economy at that time which prompted increased discretionary spending. In fiscal 2022, several coronavirus variants threatened to bring back tight restrictions. Along with the pandemic, geopolitical and macroeconomic events started to affect the U.S. economy in general, with global inflation and supply chain disruption impacting our businesses the most. Toward the end of fiscal 2022 and continuing to the current fiscal year, geopolitical and macroeconomic events have impacted our operating results and cash flows by causing inflation on wages and other operating expenses. In the event global inflation leads to a major economic downturn, our business operations and cash flows could be significantly affected.

Acquisitions and Dispositions

Acquisitions and Dispositions	9 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions and Dispositions	Acquisitions and Dispositions Lubbock Property On October 10, 2022, the Company purchased real estate in Lubbock, Texas amounting to $3.4 million for a future Bombshells location. The Company paid $1.2 million in cash at closing and obtained bank financing for the $2.3 million remainder (see Note 7 ). The site includes extra land that will be listed for sale once the Bombshells unit is completed. Heartbreakers Gentlemen's Club On October 26, 2022, the Company completed the acquisition of a club in Dickinson, Texas for a total agreed acquisition price of $9.0 million (with a total consideration preliminary fair value of $8.9 million based on certain legal contingencies that existed pre-acquisition). The acquisition included (1) $2.5 million for the adult entertainment business covered in a stock purchase agreement paid fully in cash at closing and (2) $6.5 million for the real estate property covered in a real estate purchase agreement paid $1.5 million in cash at closing and $5.0 million under a 6% 15-year promissory note (see Note 7 ). In the stock purchase agreement, the Company acquired 100% of the capital stock of the company which owned the adult entertainment business. The acquisition gives the Company its first adult club in the Galveston, Texas area market. The following is our preliminary allocation of the fair value of the acquisition price (in thousands) as of October 26, 2022: Current assets $ 64 Property and equipment 4,884 Licenses 1,170 Tradename 340 Accrued liability (95) Deferred tax liability (374) Total net assets acquired 5,989 Goodwill 2,916 Acquisition price fair value $ 8,905 We believe that in this acquisition goodwill represents the existing customer base of the club in the area and the added synergy profitability expansion when we implement the Company's processes into the club. Goodwill, licenses, and tradename will not be amortized but will be tested at least annually for impairment. Approximately $1.5 million of the recognized goodwill will be deductible for tax purposes. In connection with this acquisition, we incurred approximately $0 and $23,000 in acquisition-related expenses during the three and nine months ended June 30, 2023, respectively, which is included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income. From the date of acquisition until June 30, 2023, the club contributed revenues of $580,000 and $1.5 million and income from operations of $93,000 and $253,000 during the three and nine months ended June 30, 2023, respectively, which are included in our unaudited condensed consolidated statements of income. The seller has not maintained historical U.S. GAAP financial data and it is impracticable to prepare them, therefore, we could not provide supplemental pro forma information of the combined entities. Aurora CO Property On November 8, 2022, the Company purchased real estate in Aurora, Colorado amounting to $850,000 in cash for a future Bombshells location. Central City CO Casino Properties On December 5, 2022, the Company purchased real estate in Central City, Colorado amounting to $2.5 million in cash for the development of a Rick's Cabaret Steakhouse and Casino business. On February 6, 2023, the Company purchased real estate in Central City, Colorado amounting to $2.2 million in cash for the development of another casino business. Mark IV Property On December 16, 2022, the Company purchased real estate in Fort Worth, Texas amounting to $2.4 million in cash. The property has two buildings, one of which the Company is leasing out to an existing tenant and the other building the Company is remodeling for future adult club operations. Grange Food Hall On December 20, 2022, the Company purchased a food hall property in Greenwood Village, Colorado for $5.3 million, including direct transaction costs and net of certain accrued taxes amounting to $102,000. The purchase price was paid $1.9 million in cash at closing and $3.3 million under a 6.67% five-year promissory note (see Note 7 ). The Company allocated $2.1 million to land, $2.6 million to building improvements, $98,000 to furniture, fixtures and equipment, and $565,000 to in-place leases based on their relative fair values. Tomball Parkway Property Sale On December 28, 2022, the Company sold a property classified as held-for-sale with a carrying value of $1.0 million for $1.7 million in cash. The Company used $1.2 million of the proceeds to pay off a loan related to the property. Bombshells San Antonio On February 7, 2023, the Company completed the acquisition of a previously franchised Bombshells location in San Antonio, Texas for a total acquisition price of $3.2 million. The transaction was effected through a membership interest purchase agreement under which a subsidiary of the Company purchased 100% of the issued and outstanding membership interests of the target limited liability company that owns and operates the Bombshells location from the six previous owners of the entity (the "Sellers"). At acquisition date, the Sellers were paid $1.2 million in cash and were issued six seller-financed promissory notes totaling $2.0 million (see Note 7 ). The Company allocated the acquisition price $61,000 to inventory, $2.7 million to property and equipment, and $480,000 to favorable lease intangible and right-of-use assets, net of lease liability. Baby Dolls-Chicas Locas On March 16, 2023, the Company and certain of its subsidiaries completed the acquisition of five gentlemen's clubs, five related real estate properties, associated intellectual properties, and certain automated teller machines for a total agreed acquisition price of $66.5 million, payable with a total of $25.0 million in cash, a total of $25.5 million in 10-year 7% seller financing promissory notes, and 200,000 restricted shares of common stock based on an $80 per share price, subject to lock-up, leak out restrictions. The five clubs, which are all located in Texas, were purchased through four different asset purchase agreements and one stock purchase agreement, under each of which a newly formed wholly-owned subsidiary of the Company acquired from each club-owning entity all of the tangible and intangible assets and personal property used in the business of that club, except for certain excluded assets. The fair value of the common stock consideration was discounted due to lack of marketability during the lock-up period. The cash consideration at closing was partially funded by the $10.0 million line of credit secured by the Company on March 9, 2023 (see Note 7 ). The preliminary fair value of the consideration transferred is as follows: Cash $ 25,000 Notes payable 25,500 Common stock 12,847 Total consideration fair value $ 63,347 We recognized the assets and liabilities for this acquisition based on our estimates of their acquisition date fair values, all in our Nightclub reportable segment. We have not finalized our valuation of the tangible and identifiable intangible assets acquired in this transaction. As of the release of this report, the fair value of the acquired tangible and identifiable intangible assets are provisional pending completion of the final valuations for those assets. Based on the allocation of the preliminary fair value of the acquisition price, measurement period adjustments, and subject to any working capital adjustments, the amount of goodwill is estimated at $9.9 million. Goodwill represents the excess of the acquisition price fair value over the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, which is essentially the forward earnings potential of the acquired entities. This acquisition also gives the Company a bigger market share in the Hispanic demographic in the Texas metropolitan areas. Goodwill will not be amortized but will be tested at least annually for impairment. Approximately $9.9 million of the recognized goodwill will be deductible for tax purposes. The following is our preliminary allocation of the fair value of the acquisition price (in thousands) as of March 16, 2023: Current assets $ 632 Property and equipment 16,570 Licenses 27,440 Tradename 9,484 Accounts payable (632) Total net assets acquired 53,494 Goodwill 9,853 Acquisition price fair value $ 63,347 Licenses and tradenames will not be amortized but will be tested at least annually for impairment. In connection with this acquisition, we incurred approximately $0 and $292,000 in acquisition-related expenses during the three and nine months ended June 30, 2023, respectively, which is included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income. From the date of acquisition until June 30, 2023, the clubs contributed revenues of $7.0 million and $8.2 million and income from operations of $2.0 million and $2.4 million during the three and nine months ended June 30, 2023, respectively, which are included in our unaudited condensed consolidated statements of income. The following table presents the unaudited pro forma combined results of operations of the Company and the five acquired clubs and related assets as though the acquisition occurred at the beginning of fiscal 2022 (in thousands, except per share amount and number of shares): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Pro forma revenues $ 77,055 $ 76,733 $ 231,479 $ 213,762 Pro forma net income attributable to RCIHH common stockholders $ 9,085 $ 15,824 $ 26,129 $ 40,503 Pro forma earnings per share - basic and diluted $ 0.96 $ 1.65 $ 2.77 $ 4.21 Pro forma weighted average shares used in computing earnings per share - basic and diluted 9,430,225 9,589,675 9,430,236 9,628,461 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 2022. 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 the acquired clubs have been integrated with the Company for the entire three months ended June 30, 2023, the results presented for the said period are historical and not pro forma. Since we do not yet have a final valuation of the assets that we acquired and the liabilities that we assumed, the unaudited pro forma financial information only includes preliminary 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 the impact of acquisition-related expenses and interest expense related to the $10.0 million line-of-credit facility (see Note 7 ) and the nine seller-financed notes in the acquisition as if they were incurred as of the first day of fiscal 2022. Pro forma weighted average number of common shares outstanding includes the impact of 200,000 shares of our common stock issued as partial consideration for the acquisition. Arapahoe Street, Denver CO Property On June 20, 2023, the Company purchased a restaurant parcel located in a condominium building in Denver, Colorado amounting to $4.6 million for a future Bombshells location. The purchase price was paid $1.7 million in cash and $2.9 million under a 7.12% five-year promissory note (see Note 7 ). Pearland Property Sale On June 29, 2023, the Company sold a property with a carrying value of $1.1 million for $1.5 million in cash. The Company used $904,000 of the proceeds to pay off a loan related to the property. Non-Income-Producing Properties • On October 11, 2022, the Company purchased a hangar in Arcola, Texas amounting to $754,000 in cash. • On February 6, 2023, in view of the increasing business presence of the Company in the Denver, Colorado area, the Company acquired a non-income-producing corporate property for $458,000 in cash, to be used for office space and employee housing.

Revenues

Revenues	9 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 11 ), are shown below (in thousands): Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 26,144 $ 8,007 $ — $ 34,151 $ 21,061 $ 8,677 $ — $ 29,738 Sales of food and merchandise 5,288 6,117 — 11,405 4,639 6,935 — 11,574 Service revenues 26,497 166 — 26,663 25,287 157 — 25,444 Other revenues 4,520 107 209 4,836 3,697 20 241 3,958 $ 62,449 $ 14,397 $ 209 $ 77,055 $ 54,684 $ 15,789 $ 241 $ 70,714 Recognized at a point in time $ 61,986 $ 14,396 $ 209 $ 76,591 $ 54,320 $ 15,777 $ 241 $ 70,338 Recognized over time 463 * 1 — 464 364 * 12 — 376 $ 62,449 $ 14,397 $ 209 $ 77,055 $ 54,684 $ 15,789 $ 241 $ 70,714 Nine Months Ended June 30, 2023 Nine Months Ended June 30, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 70,433 $ 23,504 $ — $ 93,937 $ 57,901 $ 25,603 $ — $ 83,504 Sales of food and merchandise 14,705 18,052 — 32,757 13,726 19,902 — 33,628 Service revenues 77,716 200 — 77,916 67,472 349 — 67,821 Other revenues 12,951 387 592 13,930 10,540 39 710 11,289 $ 175,805 $ 42,143 $ 592 $ 218,540 $ 149,639 $ 45,893 $ 710 $ 196,242 Recognized at a point in time $ 174,481 $ 42,098 $ 547 $ 217,126 $ 148,386 $ 45,879 $ 709 $ 194,974 Recognized over time 1,324 * 45 45 1,414 1,253 * 14 1 1,268 $ 175,805 $ 42,143 $ 592 $ 218,540 $ 149,639 $ 45,893 $ 710 $ 196,242 * Lease revenue (included in Other Revenues) as covered by ASC 842. All other revenues are covered by ASC 606. The Company does not have contract assets with customers. The Company’s unconditional right to consideration for goods and services transferred to the customer is included in accounts receivable, net in our unaudited condensed consolidated balance sheet. A reconciliation of contract liabilities with customers is presented below (in thousands): Balance at September 30, 2022 Net Consideration Recognized in Balance at June 30, 2023 Ad revenue $ 82 $ 375 $ (370) $ 87 Expo revenue 8 456 — 464 Franchise fees and other 144 (25) (46) 73 $ 234 $ 806 $ (416) $ 624 Contract liabilities with customers are included in accrued liabilities as unearned revenues in our unaudited condensed consolidated balance sheets (see also Note 6 ), while the revenues associated with these contract liabilities are included in other revenues in our unaudited condensed consolidated statements of income.

Selected Account Information

Selected Account Information	9 Months Ended
	Jun. 30, 2023
Selected Account Information [Abstract]
Selected Account Information	Selected Account Information The components of accounts receivable, net are as follows (in thousands): June 30, 2023 September 30, 2022 Credit card receivables $ 2,342 $ 2,687 Income tax refundable 2,040 2,979 ATM in-transit 891 819 Other (net of allowance for doubtful accounts of $55 and $30, respectively) 2,160 2,025 Total accounts receivable, net $ 7,433 $ 8,510 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): June 30, 2023 September 30, 2022 Prepaid insurance $ 2,746 $ 191 Prepaid legal 231 61 Prepaid taxes and licenses 727 391 Prepaid rent 401 296 Other 923 560 Total prepaid expenses and other current assets $ 5,028 $ 1,499 A reconciliation of goodwill as of June 30, 2023 and September 30, 2022, which is substantially all in Nightclubs segment, is as follows (in thousands): Gross Accumulated Impairment Net Balance at September 30, 2022 $ 88,921 $ 21,154 $ 67,767 Acquisitions (see Note 4 ) 12,769 — 12,769 Impairment — 1,852 (1,852) Balance at June 30, 2023 $ 101,690 $ 23,006 $ 78,684 The components of intangible assets, net are as follows (in thousands): June 30, 2023 September 30, 2022 Indefinite-lived: Licenses $ 132,202 $ 103,972 Trademarks 22,943 13,119 Domain names 23 23 Definite-lived: Licenses 24,187 25,962 Leases acquired in-place 157 117 Noncompete agreements 13 55 Favorable leases 828 78 Software 909 723 Total intangible assets, net $ 181,262 $ 144,049 The components of accrued liabilities are as follows (in thousands): June 30, 2023 September 30, 2022 Insurance $ 2,394 $ 30 Sales and liquor taxes 2,305 2,227 Payroll and related costs 4,032 3,186 Property taxes 2,081 2,618 Interest 656 499 Patron tax 600 467 Unearned revenues 624 234 Lawsuit settlement 1,903 246 Other 3,137 1,821 Total accrued liabilities $ 17,732 $ 11,328 The components of selling, general and administrative expenses are as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Taxes and permits $ 2,969 $ 2,418 $ 8,392 $ 7,015 Advertising and marketing 3,284 2,460 8,685 7,091 Supplies and services 2,865 2,068 7,946 6,223 Insurance 2,718 2,481 7,538 7,357 Legal 754 328 3,035 2,286 Lease 1,836 1,736 5,363 4,948 Charge card fees 1,792 1,829 5,372 4,626 Utilities 1,443 1,151 4,067 3,194 Security 1,523 1,081 3,995 3,218 Stock-based compensation 470 — 2,117 — Accounting and professional fees 1,050 818 3,225 2,786 Repairs and maintenance 1,367 960 3,738 2,588 Other 1,732 2,242 5,088 5,163 Total selling, general and administrative expenses $ 23,803 $ 19,572 $ 68,561 $ 56,495 The components of other charges, net are as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Impairment of assets $ 2,631 $ 1,722 $ 3,293 $ 1,722 Settlement of lawsuits 63 132 3,183 709 Gain on disposal of businesses and assets (105) (266) (692) (666) Gain on insurance — (87) (91) (408) Other charges, net $ 2,589 $ 1,501 $ 5,693 $ 1,357 During the second quarter ended March 31, 2023, the Company recorded $662,000 in goodwill impairment related to one club, and during the third quarter ended June 30, 2023, the Company recorded $1.2 million in goodwill impairment related to one club and $380,000 in SOB license impairment, $58,000 in property and equipment impairment and $1.0 million in operating lease right-of-use asset impairment related to one club that was closed. During the third quarter ended June 2022, the Company recorded $293,000 in SOB license impairment, $400,000 in goodwill impairment, and $1.0 million in property and equipment impairment related to two clubs and one Bombshells unit.

Debt

Debt	9 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt On October 10, 2022, in relation to a real estate purchase (see Note 4 ), the Company borrowed $2.3 million from a bank lender. The 18-month promissory note bears an initial interest rate of 6% per annum adjusted daily to a rate equal to the Wall Street Journal prime rate plus 0.5% with a floor of 6%. The promissory note is payable in 17 monthly interest-only installments with the full principal and accrued interest payable at maturity. The Company paid approximately $26,000 in debt issuance cost at closing. This promissory note is secured by the purchased real estate property. On October 26, 2022, in relation to a club acquisition (see Note 4 ), the Company executed a promissory note for $5.0 million with the seller. The 6% 15-year promissory note is payable in 180 equal monthly payments of $42,193 in principal and interest. This promissory note is secured by the purchased real estate property. On November 18, 2022, in relation to a real estate purchase on September 12, 2022, the Company borrowed $1.5 million from a bank lender. The 18-month promissory note bears an initial interest rate of 6% per annum to be adjusted daily to a rate equal to the Wall Street Journal prime rate plus 0.5% with a floor of 6%. The promissory note is payable in 17 monthly interest-only installments with the full principal and accrued interest payable at maturity. This promissory note is secured by the purchased real estate property. On December 20, 2022, the Company executed a promissory note for $3.3 million with a bank lender in relation to a purchase of a food hall property (see Note 4 ). The 6.67% five-year promissory note is payable in 59 equal monthly installments of $22,805 in principal and interest, with the balance of principal and accrued interest payable at maturity. There are certain financial covenants with which the Company is to be in compliance related to this loan. On February 7, 2023, in relation to the acquisition of a franchised Bombshells location in San Antonio, Texas (see Note 4 ), the Company entered into six separate seller-financing promissory notes totaling $2.0 million. Each of the promissory notes has an interest rate of 7% per annum, has a term of 24 months, and is payable in monthly installments totaling $39,602 of principal and interest for the first 23 months based on a 60-month amortization schedule with the remaining unpaid principal and interest paid at maturity. On March 9, 2023, the Company closed a $10.0 million line-of-credit facility with a lender bank evidenced by a revolving promissory note, with an initial draw of $10.0 million at closing. The facility has an initial term of 24 months with a variable interest rate equal to the Wall Street Journal prime rate plus 1%. On such date that the principal balance is repaid to an amount less than $5.0 million, the facility's revolver feature is activated where the Company may draw from the remaining availability up to a maximum of $5.0 million. The Company shall also pay a non-usage fee of 0.5% based on the amount by which the average outstanding balance for the prior twelve months was less than $3.0 million or the amount by which the total aggregate advances during the prior twelve months totaled less than $3.0 million. The Company paid $115,000 in debt issuance costs, which is recorded as deferred charges to be amortized on a straight-line basis over 24 months. There are certain financial covenants with which the Company is to be in compliance related to this loan, including a compensating balance requirement of $3.0 million and a minimum tangible net worth requirement of $20.0 million. The compensating balance requirement does not contractually or legally restrict the withdrawal or use of cash. On March 16, 2023, in relation to the acquisition of five clubs with associated real estate, automated teller machines, and intellectual property (see Note 4 ), the Company executed nine secured promissory notes with a total principal amount of $25.5 million. Each of the nine promissory notes have an interest rate of 7% per annum with a term of 10 years, payable in arrears in 120 equal monthly payments of principal and interest amounting to $296,077 per month in the aggregate. The holder of the $5.0 million promissory note related to the real estate properties may call due from the Company a principal payment of $1.0 million once in every calendar year. On June 18, 2023, in relation to a purchase of a retail parcel in a condominium property (see Note 4 ), the Company executed a promissory note for $2.9 million with a bank lender. The 7.12% five-year promissory note is payable in monthly installments of $20,654 in principal and interest, with the balance of principal and accrued interest payable at maturity. Future maturities of long-term debt as of June 30, 2023 are as follows: $24.4 million, $39.1 million, $12.3 million, $13.1 million, $22.6 million and $135.5 million for the twelve months ending June 30, 2023, 2024, 2025, 2026, 2027, and thereafter, respectively. Of the maturity schedule mentioned above, $7.5 million, $26.8 million, $0.0 million, $0, $8.7 million and $70.6 million, respectively, relate to scheduled balloon payments. Unamortized debt discount and issuance costs amounted to $3.1 million and $3.4 million as of June 30, 2023 and September 30, 2022, respectively.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based CompensationOn February 7, 2022, our board of directors approved the 2022 Stock Option Plan (the “2022 Plan”). The board’s adoption of the 2022 Plan was approved by the shareholders during the annual stockholders' meeting on August 23, 2022. The 2022 Plan provides that the maximum aggregate number of shares of common stock underlying options that may be granted under the 2022 Plan is 300,000. The options granted under the 2022 Plan may be either incentive stock options or non-qualified options. The 2022 Plan is administered by the compensation committee of the board of directors. The compensation committee has the exclusive power to select individuals to receive grants, to establish the terms of the options granted to each participant, provided that all options granted shall be granted at an exercise price not less than the fair market value of the common stock covered by the option on the grant date, and to make all determinations necessary or advisable under the 2022 Plan. On February 9, 2022, the board of directors approved a grant of 50,000 stock options to each of six members of management subject to the approval of the 2022 Plan. Stock-based compensation for the three and nine months ended June 30, 2023, which is included in corporate segment selling, general and administrative expenses, amounted to $470,000 and $2.1 million, respectively. No stock-based compensation expense was recognized during the three and nine months ended June 30, 2022. As of June 30, 2023, we had unrecognized compensation cost amounting to $4.9 million related to stock-based compensation awards granted, which is expected to be recognized over a weighted average period of 2.6 years. The February 9, 2022 stock options vest over four years with the first 20% having vested on the approval of the 2022 Plan at the 2022 annual stockholders' meeting on August 23, 2022, and 20% vesting on February 9 of each year thereafter, provided however that the options will be subject to earlier vesting under certain events set forth in the Plan, including without limitation a change in control. All of the options will expire, if not exercised, at the end of five years. The weighted average grant-date fair value of the stock options was $31.37 per share. No stock options were exercised during the three and nine months ended June 30, 2023. As of June 30, 2023, 120,000 stock options were vested and exercisable. For the three and nine months ended June 30, 2023, we excluded 300,000 stock options from the calculation of diluted earnings per share because their effect was anti-dilutive. There were no stock options outstanding during the three and nine months ended June 30, 2022. Aside from the outstanding stock options, there were no other potentially dilutive securities for inclusion in the calculation of diluted earnings per share.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense was $2.3 million and $7.4 million during the three and nine months ended June 30, 2023, respectively, compared to $3.8 million and $10.1 million during the three and nine months ended June 30, 2022, respectively. The effective income tax expense rate was 20.1% and 21.6% for the three and nine months ended June 30, 2023, respectively, compared to 21.3% and 22.1% for the three and nine months ended June 30, 2022, respectively. Our effective income tax rate is affected by state taxes, permanent differences, and tax credits, including the FICA tip credit, for both years, as presented below. For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Federal statutory income tax expense 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 % 2.9 % 3.4 % 2.9 % Permanent differences 0.5 % 0.4 % 0.5 % 0.4 % Tax credits (3.7) % (3.2) % (3.4) % (2.8) % Other 0.1 % 0.1 % 0.1 % 0.5 % Total income tax expense 20.1 % 21.3 % 21.6 % 22.1 %

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters Texas Patron Tax A declaratory judgment action was brought by five operating subsidiaries of the Company to challenge a Texas Comptroller administrative rule related to the $5 per customer Patron Tax Fee assessed against Sexually Oriented Businesses. An administrative rule attempted to expand the fee to cover venues featuring dancers using latex cover as well as traditional nude entertainment. The administrative rule was challenged on both constitutional and statutory grounds. On November 19, 2018, the Court issued an order that a key aspect of the administrative rule is invalid based on it exceeding the scope of the Comptroller’s authority. On March 6, 2020, the U.S. District Court for the Western District of Texas, Austin Division, ruled that the Texas Patron Tax is unconstitutional as it has been applied and enforced by the Comptroller. The State of Texas appealed to the Fifth Circuit Court of Appeals, who affirmed that the Texas Patron Fee is unconstitutional as applied. The State of Texas next sought review from the Supreme Court, but the high court declined to take the case and in doing so exhausted the State's rights to appeal the judgment. The lawsuit was sent back to the trial court for post-trial proceedings, which resulted in the award of attorneys' fees to the operating subsidiaries. Pursuant to the rulings, the Texas Patron Fee is unconstitutional as applied to clubs featuring dancers using latex cover. 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 had 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 June 30, 2023, we have 1 remaining unresolved claim out of the original 71 claims. Shareholder Derivative Action On January 21, 2022, Shiva Stein and Kevin McCarty filed a shareholder derivative action in the Southern District of Texas, Houston Division against former director Nourdean Anakar, Yura Barabash, former director Steven L. Jenkins, Eric Langan, Luke Lirot, former CFO Phillip K. Marshall, Elaine J. Martin, Allan Priaulx, and Travis Reese as defendants, as well as against RCI Hospitality Holdings, Inc. as nominal defendant. The action, styled Stein v. Anakar, et al., No. 4:22-mc-00149 (S.D. Tex.), alleges claims for breach of fiduciary duty based on alleged dissemination of inaccurate information and failure to maintain internal controls. These allegations are substantively similar to claims asserted in a prior securities class action that was settled in August of 2022 and a prior derivative action that was dismissed in June of 2021. On July 24, 2023, the parties reached an agreement in principle to resolve the action. The parties are preparing a settlement agreement and anticipate seeking Court approval of the proposed settlement in the next 30 days. The Company believes that payments under the settlement agreement will be covered by insurance. Other 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 million and its share of punitive damages is $4.0 million. In May 2017, JAI Phoenix filed a motion for judgment as a matter of law or, in the alternative, motion for new trial. The Court denied this motion in August 2017. In September 2017, JAI Phoenix filed a notice of appeal. In June 2018, the matter was heard by the Arizona Court of Appeals. On November 15, 2018 the Court of Appeals vacated the jury’s verdict and remanded the case to the trial court. It is anticipated that a new trial will occur at some point in the future. JAI Phoenix will continue to vigorously defend itself. 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. In March 2023, the New York State Department of Labor assessed a final judgment against one of our subsidiaries in a state unemployment tax matter for the years 2009-2022. The assessment of $2.8 million, which was recorded by the Company during the quarter ended March 31, 2023, was issued in final notice by the NY DOL after several appeals were denied by the Supreme Court of the State of New York, Appellate Division, Third Department. General In the regular course of business affairs and operations, we are subject to possible loss contingencies arising from third-party litigation and federal, state, and local environmental, labor, health and safety laws and regulations. We assess the probability that we could incur liability in connection with certain of these lawsuits. Our assessments are made in accordance with generally accepted accounting principles, as codified in ASC 450-20, and is not an admission of any liability on the part of the Company or any of its subsidiaries. In certain cases that are in the early stages and in light of the uncertainties surrounding them, we do not currently possess sufficient information to determine a range of reasonably possible liability. In matters where there is insurance coverage, in the event we incur any liability, we believe it is unlikely we would incur losses in connection with these claims in excess of our insurance coverage. Settlements of lawsuits for the three and nine months ended June 30, 2023 amount to $0.1 million and $3.2 million, respectively, and for the three and nine months ended June 30, 2022 amount to approximately $132,000 and $709,000, respectively. As of June 30, 2023 and September 30, 2022, the Company has accrued $1.9 million and $246,000 in accrued liabilities, respectively, related to settlement of lawsuits.

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Information	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 unaudited condensed consolidated financial statements. Below is the financial information related to the Company’s segments (in thousands): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Revenues (from external customers) Nightclubs $ 62,449 $ 54,684 $ 175,805 $ 149,639 Bombshells 14,397 15,789 42,143 45,893 Other 209 241 592 710 $ 77,055 $ 70,714 $ 218,540 $ 196,242 Income (loss) from operations Nightclubs $ 20,392 $ 22,459 $ 61,127 $ 60,321 Bombshells 1,701 3,065 5,323 9,335 Other (300) (82) (653) (159) Corporate (6,278) (4,935) (19,957) (15,998) $ 15,515 $ 20,507 $ 45,840 $ 53,499 Depreciation and amortization Nightclubs $ 2,915 $ 1,880 $ 7,864 $ 5,633 Bombshells 611 449 2,000 1,332 Other 212 6 338 19 Corporate 303 230 906 652 $ 4,041 $ 2,565 $ 11,108 $ 7,636 Capital expenditures Nightclubs $ 5,915 $ 1,678 $ 14,598 $ 12,568 Bombshells 1,438 1,188 11,940 3,393 Other 165 145 243 693 Corporate 1,511 172 3,138 519 $ 9,029 $ 3,183 $ 29,919 $ 17,173 June 30, 2023 September 30, 2022 Total assets Nightclubs $ 495,412 $ 437,096 Bombshells 84,207 62,021 Other 2,635 2,635 Corporate 37,853 28,986 $ 620,107 $ 530,738 Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the three months ended June 30, 2023 amounting to $4.3 million and $32,000, respectively, and for the nine months ended June 30, 2023 amounting to $11.9 million and $294,000, respectively; and intercompany sales of Robust Energy Drink included in Other segment for the three and nine months ended June 30, 2023 amounting to $73,000 and $188,000, respectively. Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the three months ended June 30, 2022 amounting to $3.4 million and $32,000, and for the nine months ended June 30, 2022 amounting to $9.9 million and $231,000, respectively; and intercompany sales of Robust Energy Drink included in Other segment for the three and nine months ended June 30, 2022 amounting to $42,000 and $164,000, respectively. These intercompany revenue amounts are eliminated upon consolidation. 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. As of September 30, 2022, we reclassified $9.0 million of goodwill from Corporate to Nightclubs to conform to current year presentation. See Note 1 .

Related Party Transactions

Related Party Transactions	9 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Presently, our Chairman and President, Eric Langan, personally guarantees all of the commercial bank indebtedness of the Company. Mr. Langan receives no compensation or other direct financial benefit for any of the guarantees. The balance of our commercial bank indebtedness, net of debt discount and issuance costs, as of June 30, 2023 and September 30, 2022, was $120.2 million and $115.1 million, respectively. Included in the $17.0 million borrowing on October 12, 2021 are 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 $150,000 (from a brother of Company CFO, Bradley Chhay) in which the terms of the notes are the same as the rest of the lender group. 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 $0 and $188,285 during the three and nine months ended June 30, 2023, respectively, and $42,093 and $69,242 during the three and nine months ended June 30, 2022, respectively. As of June 30, 2023 and September 30, 2022, we owed Nottingham Creations and Sherwood Forest $17,386 and $92,808, respectively, in unpaid billings. TW Mechanical LLC 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 2023 and 2022. 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 $171,435 and $235,738 for the three and nine months ended June 30, 2023, respectively, and $0 and

Leases

Leases	9 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Leases Total lease expense included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income for the three and nine months ended June 30, 2023 and 2022 is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Operating lease expense – fixed payments $ 1,327 $ 1,215 $ 3,874 $ 3,482 Variable lease expense 406 404 1,192 971 Short-term and other lease expense (includes $116 and $53 recorded in advertising and marketing for the three months ended June 30, 2023 and 2022, respectively, and $243 and $183 for the nine months ended June 30, 2023 and 2022, respectively; and $145 and $120 recorded in repairs and maintenance for the three months ended June 30, 2023 and 2022, respectively, and $410 and $310 for the nine months ended June 30, 2023 and 2022, respectively; see Note 6 ) 364 290 950 988 Sublease income — (1) — (4) Total lease expense, net $ 2,097 $ 1,908 $ 6,016 $ 5,437 Other information: Operating cash outflows from operating leases $ 2,055 $ 1,855 $ 5,885 $ 5,294 Weighted average remaining lease term – operating leases 10.7 years 11.0 years Weighted average discount rate – operating leases 5.8 % 5.6 % Future maturities of operating lease liabilities as of June 30, 2023 are as follows (in thousands): Principal Payments Interest Payments Total Payments July 2023 - June 2024 $ 2,923 $ 2,098 $ 5,021 July 2024 - June 2025 3,161 1,926 5,087 July 2025 - June 2026 3,445 1,740 5,185 July 2026 - June 2027 3,580 1,538 5,118 July 2027 - June 2028 3,081 1,344 4,425 Thereafter 22,674 4,939 27,613 $ 38,864 $ 13,585 $ 52,449

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 3, 2023, the Company purchased real estate in Central City, Colorado amounting to $2.9 million in cash for future business development. Subsequent to the balance sheet date through August 4, 2023, we repurchased 10,440 shares of our common stock at an average price of $69.48.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe accompanying unaudited condensed consolidated financial statements of RCI Hospitality Holdings, Inc. (the “Company,” “RCIHH,” “we,” or “us”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all information and footnotes required by GAAP for complete financial statements. The September 30, 2022 consolidated balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended September 30, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on December 14, 2022. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023.
Recent Accounting Standards and Pronouncements	Recent Accounting Standards and Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU amends ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are still evaluating the impact of this ASU but we do not expect it to have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments of this ASU clarify that an entity should measure the fair value of an equity security subject to contractual sale restriction the same way it measures an identical equity security that is not subject to such a restriction. The FASB said the contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not affect its fair value. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. We are still evaluating the impact of this ASU on our consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control. The ASU requires all companies to amortize leasehold improvements associated with common control leases over the asset's useful life to the common control group regardless of the lease term. It also allows private and certain not-for-profit entities to use the written terms and conditions of an agreement to account for common control leases without further assessing the legal enforceability of those terms. The guidance is effective for all entities in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. We are still evaluating the impact of this ASU on our consolidated financial statements.

Acquisitions and Dispositions (

Acquisitions and Dispositions (Tables)	9 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following is our preliminary allocation of the fair value of the acquisition price (in thousands) as of October 26, 2022: Current assets $ 64 Property and equipment 4,884 Licenses 1,170 Tradename 340 Accrued liability (95) Deferred tax liability (374) Total net assets acquired 5,989 Goodwill 2,916 Acquisition price fair value $ 8,905 The following is our preliminary allocation of the fair value of the acquisition price (in thousands) as of March 16, 2023: Current assets $ 632 Property and equipment 16,570 Licenses 27,440 Tradename 9,484 Accounts payable (632) Total net assets acquired 53,494 Goodwill 9,853 Acquisition price fair value $ 63,347
Schedule of Preliminary Fair Value of Consideration	The preliminary fair value of the consideration transferred is as follows: Cash $ 25,000 Notes payable 25,500 Common stock 12,847 Total consideration fair value $ 63,347
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 five acquired clubs and related assets as though the acquisition occurred at the beginning of fiscal 2022 (in thousands, except per share amount and number of shares): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Pro forma revenues $ 77,055 $ 76,733 $ 231,479 $ 213,762 Pro forma net income attributable to RCIHH common stockholders $ 9,085 $ 15,824 $ 26,129 $ 40,503 Pro forma earnings per share - basic and diluted $ 0.96 $ 1.65 $ 2.77 $ 4.21 Pro forma weighted average shares used in computing earnings per share - basic and diluted 9,430,225 9,589,675 9,430,236 9,628,461

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Jun. 30, 2023
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 11 ), are shown below (in thousands): Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 26,144 $ 8,007 $ — $ 34,151 $ 21,061 $ 8,677 $ — $ 29,738 Sales of food and merchandise 5,288 6,117 — 11,405 4,639 6,935 — 11,574 Service revenues 26,497 166 — 26,663 25,287 157 — 25,444 Other revenues 4,520 107 209 4,836 3,697 20 241 3,958 $ 62,449 $ 14,397 $ 209 $ 77,055 $ 54,684 $ 15,789 $ 241 $ 70,714 Recognized at a point in time $ 61,986 $ 14,396 $ 209 $ 76,591 $ 54,320 $ 15,777 $ 241 $ 70,338 Recognized over time 463 * 1 — 464 364 * 12 — 376 $ 62,449 $ 14,397 $ 209 $ 77,055 $ 54,684 $ 15,789 $ 241 $ 70,714 Nine Months Ended June 30, 2023 Nine Months Ended June 30, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 70,433 $ 23,504 $ — $ 93,937 $ 57,901 $ 25,603 $ — $ 83,504 Sales of food and merchandise 14,705 18,052 — 32,757 13,726 19,902 — 33,628 Service revenues 77,716 200 — 77,916 67,472 349 — 67,821 Other revenues 12,951 387 592 13,930 10,540 39 710 11,289 $ 175,805 $ 42,143 $ 592 $ 218,540 $ 149,639 $ 45,893 $ 710 $ 196,242 Recognized at a point in time $ 174,481 $ 42,098 $ 547 $ 217,126 $ 148,386 $ 45,879 $ 709 $ 194,974 Recognized over time 1,324 * 45 45 1,414 1,253 * 14 1 1,268 $ 175,805 $ 42,143 $ 592 $ 218,540 $ 149,639 $ 45,893 $ 710 $ 196,242 * Lease revenue (included in Other Revenues) as covered by ASC 842. All other revenues are covered by ASC 606.
Schedule of Reconciliation of Contract Liabilities with Customers	A reconciliation of contract liabilities with customers is presented below (in thousands): Balance at September 30, 2022 Net Consideration Recognized in Balance at June 30, 2023 Ad revenue $ 82 $ 375 $ (370) $ 87 Expo revenue 8 456 — 464 Franchise fees and other 144 (25) (46) 73 $ 234 $ 806 $ (416) $ 624

Selected Account Information (T

Selected Account Information (Tables)	9 Months Ended
	Jun. 30, 2023
Selected Account Information [Abstract]
Schedule of Accounts Receivable, Net	The components of accounts receivable, net are as follows (in thousands): June 30, 2023 September 30, 2022 Credit card receivables $ 2,342 $ 2,687 Income tax refundable 2,040 2,979 ATM in-transit 891 819 Other (net of allowance for doubtful accounts of $55 and $30, respectively) 2,160 2,025 Total accounts receivable, net $ 7,433 $ 8,510
Schedule of Components of Prepaid Expenses and Other Current Assets	The components of prepaid expenses and other current assets are as follows (in thousands): June 30, 2023 September 30, 2022 Prepaid insurance $ 2,746 $ 191 Prepaid legal 231 61 Prepaid taxes and licenses 727 391 Prepaid rent 401 296 Other 923 560 Total prepaid expenses and other current assets $ 5,028 $ 1,499
Schedule of Reconciliation of Goodwill	A reconciliation of goodwill as of June 30, 2023 and September 30, 2022, which is substantially all in Nightclubs segment, is as follows (in thousands): Gross Accumulated Impairment Net Balance at September 30, 2022 $ 88,921 $ 21,154 $ 67,767 Acquisitions (see Note 4 ) 12,769 — 12,769 Impairment — 1,852 (1,852) Balance at June 30, 2023 $ 101,690 $ 23,006 $ 78,684
Schedule of Intangible Assets, Net	The components of intangible assets, net are as follows (in thousands): June 30, 2023 September 30, 2022 Indefinite-lived: Licenses $ 132,202 $ 103,972 Trademarks 22,943 13,119 Domain names 23 23 Definite-lived: Licenses 24,187 25,962 Leases acquired in-place 157 117 Noncompete agreements 13 55 Favorable leases 828 78 Software 909 723 Total intangible assets, net $ 181,262 $ 144,049
Schedule of Accrued Liabilities	The components of accrued liabilities are as follows (in thousands): June 30, 2023 September 30, 2022 Insurance $ 2,394 $ 30 Sales and liquor taxes 2,305 2,227 Payroll and related costs 4,032 3,186 Property taxes 2,081 2,618 Interest 656 499 Patron tax 600 467 Unearned revenues 624 234 Lawsuit settlement 1,903 246 Other 3,137 1,821 Total accrued liabilities $ 17,732 $ 11,328
Schedule of Selling, General and Administrative Expenses	The components of selling, general and administrative expenses are as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Taxes and permits $ 2,969 $ 2,418 $ 8,392 $ 7,015 Advertising and marketing 3,284 2,460 8,685 7,091 Supplies and services 2,865 2,068 7,946 6,223 Insurance 2,718 2,481 7,538 7,357 Legal 754 328 3,035 2,286 Lease 1,836 1,736 5,363 4,948 Charge card fees 1,792 1,829 5,372 4,626 Utilities 1,443 1,151 4,067 3,194 Security 1,523 1,081 3,995 3,218 Stock-based compensation 470 — 2,117 — Accounting and professional fees 1,050 818 3,225 2,786 Repairs and maintenance 1,367 960 3,738 2,588 Other 1,732 2,242 5,088 5,163 Total selling, general and administrative expenses $ 23,803 $ 19,572 $ 68,561 $ 56,495
Schedule of Components of Other Charges (Gains)	The components of other charges, net are as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Impairment of assets $ 2,631 $ 1,722 $ 3,293 $ 1,722 Settlement of lawsuits 63 132 3,183 709 Gain on disposal of businesses and assets (105) (266) (692) (666) Gain on insurance — (87) (91) (408) Other charges, net $ 2,589 $ 1,501 $ 5,693 $ 1,357

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	Our effective income tax rate is affected by state taxes, permanent differences, and tax credits, including the FICA tip credit, for both years, as presented below. For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Federal statutory income tax expense 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 % 2.9 % 3.4 % 2.9 % Permanent differences 0.5 % 0.4 % 0.5 % 0.4 % Tax credits (3.7) % (3.2) % (3.4) % (2.8) % Other 0.1 % 0.1 % 0.1 % 0.5 % Total income tax expense 20.1 % 21.3 % 21.6 % 22.1 %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Below is the financial information related to the Company’s segments (in thousands): For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Revenues (from external customers) Nightclubs $ 62,449 $ 54,684 $ 175,805 $ 149,639 Bombshells 14,397 15,789 42,143 45,893 Other 209 241 592 710 $ 77,055 $ 70,714 $ 218,540 $ 196,242 Income (loss) from operations Nightclubs $ 20,392 $ 22,459 $ 61,127 $ 60,321 Bombshells 1,701 3,065 5,323 9,335 Other (300) (82) (653) (159) Corporate (6,278) (4,935) (19,957) (15,998) $ 15,515 $ 20,507 $ 45,840 $ 53,499 Depreciation and amortization Nightclubs $ 2,915 $ 1,880 $ 7,864 $ 5,633 Bombshells 611 449 2,000 1,332 Other 212 6 338 19 Corporate 303 230 906 652 $ 4,041 $ 2,565 $ 11,108 $ 7,636 Capital expenditures Nightclubs $ 5,915 $ 1,678 $ 14,598 $ 12,568 Bombshells 1,438 1,188 11,940 3,393 Other 165 145 243 693 Corporate 1,511 172 3,138 519 $ 9,029 $ 3,183 $ 29,919 $ 17,173 June 30, 2023 September 30, 2022 Total assets Nightclubs $ 495,412 $ 437,096 Bombshells 84,207 62,021 Other 2,635 2,635 Corporate 37,853 28,986 $ 620,107 $ 530,738

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Lease Expense	Total lease expense included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income for the three and nine months ended June 30, 2023 and 2022 is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Operating lease expense – fixed payments $ 1,327 $ 1,215 $ 3,874 $ 3,482 Variable lease expense 406 404 1,192 971 Short-term and other lease expense (includes $116 and $53 recorded in advertising and marketing for the three months ended June 30, 2023 and 2022, respectively, and $243 and $183 for the nine months ended June 30, 2023 and 2022, respectively; and $145 and $120 recorded in repairs and maintenance for the three months ended June 30, 2023 and 2022, respectively, and $410 and $310 for the nine months ended June 30, 2023 and 2022, respectively; see Note 6 ) 364 290 950 988 Sublease income — (1) — (4) Total lease expense, net $ 2,097 $ 1,908 $ 6,016 $ 5,437 Other information: Operating cash outflows from operating leases $ 2,055 $ 1,855 $ 5,885 $ 5,294 Weighted average remaining lease term – operating leases 10.7 years 11.0 years Weighted average discount rate – operating leases 5.8 % 5.6 %
Schedule of Future Maturities of Operating Lease Liabilities	Future maturities of operating lease liabilities as of June 30, 2023 are as follows (in thousands): Principal Payments Interest Payments Total Payments July 2023 - June 2024 $ 2,923 $ 2,098 $ 5,021 July 2024 - June 2025 3,161 1,926 5,087 July 2025 - June 2026 3,445 1,740 5,185 July 2026 - June 2027 3,580 1,538 5,118 July 2027 - June 2028 3,081 1,344 4,425 Thereafter 22,674 4,939 27,613 $ 38,864 $ 13,585 $ 52,449

Acquisitions and Dispositions -

Acquisitions and Dispositions - Narrative (Details)

3 Months Ended

9 Months Ended

Jun. 29, 2023 USD ($)

Jun. 20, 2023 USD ($)

Jun. 18, 2023 USD ($)

Mar. 16, 2023 USD ($) club property asset_purchase_agreement note stock_purchase_agreement $ / shares shares

Mar. 09, 2023 USD ($)

Feb. 07, 2023 USD ($) note seller

Feb. 06, 2023 USD ($)

Dec. 28, 2022 USD ($)

Dec. 20, 2022 USD ($)

Dec. 16, 2022 USD ($) building

Dec. 05, 2022 USD ($)

Nov. 18, 2022 USD ($)

Nov. 08, 2022 USD ($)

Oct. 26, 2022 USD ($)

Oct. 11, 2022 USD ($)

Oct. 10, 2022 USD ($)

Jun. 30, 2023 USD ($) note

Mar. 31, 2023 shares

Jun. 30, 2022 USD ($)

Dec. 31, 2021 shares

Jun. 30, 2023 USD ($) note shares

Jun. 30, 2022 USD ($)

Sep. 30, 2022 USD ($)

Business Acquisition [Line Items]

Total revenues

$ 77,055,000

$ 70,714,000

$ 218,540,000

$ 196,242,000

Income from operations

15,515,000

$ 20,507,000

45,840,000

$ 53,499,000

Property classified as held for sale

$ 1,100,000

$ 1,000,000

Proceeds from sale of property held-for-sale

1,500,000

1,700,000

Portion of proceeds from sale of property used to pay off the loan related to the property

$ 904,000

$ 1,200,000

Goodwill

78,684,000

78,684,000

$ 67,767,000

Hangar in Arcola, Texas

Business Acquisition [Line Items]

Payments to acquire productive assets

$ 754,000

Non-Income-Producing Corporate Property in Denver, Colorado

Business Acquisition [Line Items]

Payments to acquire productive assets

$ 458,000

Common Stock

Business Acquisition [Line Items]

Issuance of common shares for business combination (in shares) | shares

200,000

500,000

Notes Payable to Banks

Business Acquisition [Line Items]

Debt instrument, term

18 months

18 months

Debt instrument, face amount

$ 1,500,000

$ 2,300,000

Line of Credit | Revolving Credit Facility

Business Acquisition [Line Items]

Debt instrument, term

24 months

Debt instrument, face amount

$ 10,000,000

Six Seller Financed Promissory Note | Notes Payable to Banks

Business Acquisition [Line Items]

Debt instrument, interest rate, stated percentage

7%

Debt instrument, term

24 months

Number of seller-financed notes | note

6

Debt instrument, face amount

$ 2,000,000

Nine Secured Promissory Notes | Notes Payable to Banks

Business Acquisition [Line Items]

Debt instrument, interest rate, stated percentage

7%

Debt instrument, term

10 years

Number of seller-financed notes | note

9

Debt instrument, face amount

$ 25,500,000

Club In Dickinson, Texas

Business Acquisition [Line Items]

Business combination, consideration transferred

$ 9,000,000

Total consideration fair value

$ 8,900,000

Percentage of voting interests acquired

100%

Recognized goodwill deductible for tax purposes

$ 1,500,000

Business combination, acquisition related costs

0

23,000

Total revenues

580,000

1,500,000

Income from operations

93,000

253,000

Property and equipment

4,884,000

Goodwill

2,916,000

Club In Dickinson, Texas - Adult Entertainment Business

Business Acquisition [Line Items]

Business combination, consideration transferred

2,500,000

Cash

1,500,000

Club In Dickinson, Texas - Adult Entertainment Business | 6% Fifteen-Year Promissory Note | Notes Payable to Banks

Business Acquisition [Line Items]

Notes payable

$ 5,000,000

Debt instrument, interest rate, stated percentage

6%

Debt instrument, term

15 years

Debt instrument, face amount

$ 5,000,000

Club In Dickinson, Texas - Real Estate Property

Business Acquisition [Line Items]

Business combination, consideration transferred

$ 6,500,000

Bombshells Location in San Antonio, Texas

Business Acquisition [Line Items]

Business combination, consideration transferred

3,200,000

Cash

$ 1,200,000

Percentage of voting interests acquired

100%

Property and equipment

$ 2,700,000

Number of sellers | seller

6

Number of seller-financed notes | note

6

Inventory

$ 61,000

Lease intangible and right-of-use assets, net of lease liability

480,000

Bombshells Location in San Antonio, Texas | Six Seller Financed Promissory Note | Notes Payable to Banks

Business Acquisition [Line Items]

Debt instrument, face amount

$ 2,000,000

Baby Dolls-Chicas Locas

Business Acquisition [Line Items]

Business combination, consideration transferred

66,500,000

Cash

25,000,000

Total consideration fair value

63,347,000

Notes payable

25,500,000

Recognized goodwill deductible for tax purposes

9,900,000

Business combination, acquisition related costs

0

292,000

Total revenues

7,000,000

8,200,000

Income from operations

2,000,000

$ 2,400,000

Property and equipment

$ 16,570,000

Number of clubs acquired | club

5

Number of real estate properties acquired | property

5

Business acquisition, share price (in dollars per share) | $ / shares

$ 80

Number of asset purchase agreements | asset_purchase_agreement

4

Number of stock purchase agreements | stock_purchase_agreement

1

Goodwill

$ 9,853,000

Baby Dolls-Chicas Locas | Common Stock

Business Acquisition [Line Items]

Issuance of common shares for business combination (in shares) | shares

200,000

Common stock issued as partial consideration | shares

200,000

Baby Dolls-Chicas Locas | Line of Credit

Business Acquisition [Line Items]

Debt instrument, face amount

$ 10,000,000

Baby Dolls-Chicas Locas | Line of Credit | Revolving Credit Facility

Business Acquisition [Line Items]

Debt instrument, face amount

$ 10,000,000

$ 10,000,000

Baby Dolls-Chicas Locas | 7% Seller Financing Promissory Notes

Business Acquisition [Line Items]

Consideration transferred, other

$ 25,500,000

Baby Dolls-Chicas Locas | Nine Secured Promissory Notes | Notes Payable to Banks

Business Acquisition [Line Items]

Number of seller-financed notes | note

9

9

Real Estate in Lubbock, Texas

Business Acquisition [Line Items]

Business combination, consideration transferred

3,400,000

Cash

1,200,000

Consideration transferred, other

$ 2,300,000

Real Estate in Aurora, Colorado

Business Acquisition [Line Items]

Payments to acquire real estate

$ 850,000

Real Estate in Central City, Colorado

Business Acquisition [Line Items]

Payments to acquire real estate

$ 2,200,000

$ 2,500,000

Real Estate In Fort Worth, Texas

Business Acquisition [Line Items]

Payments to acquire real estate

$ 2,400,000

Number of buildings purchased in transaction | building

2

Food Hall Property In Greenwood Village, Colorado

Business Acquisition [Line Items]

Business combination, consideration transferred

$ 5,300,000

Cash

1,900,000

Business combination, acquisition related costs

102,000

Food Hall Property In Greenwood Village, Colorado | Leases acquired in-place

Business Acquisition [Line Items]

Identifiable intangibles

565,000

Food Hall Property In Greenwood Village, Colorado | Land

Business Acquisition [Line Items]

Property and equipment

2,100,000

Food Hall Property In Greenwood Village, Colorado | Building and Building Improvements

Business Acquisition [Line Items]

Property and equipment

2,600,000

Food Hall Property In Greenwood Village, Colorado | Furniture, Fixtures And Equipment

Business Acquisition [Line Items]

Property and equipment

98,000

Food Hall Property In Greenwood Village, Colorado | 6.67% Five-Year Promissory Note | Notes Payable to Banks

Business Acquisition [Line Items]

Notes payable

$ 3,300,000

Debt instrument, interest rate, stated percentage

6.67%

Debt instrument, term

5 years

Debt instrument, face amount

$ 3,300,000

Baby Dolls-Chicas Locas | 7% Seller Financing Promissory Notes | Notes Payable to Banks

Business Acquisition [Line Items]

Debt instrument, interest rate, stated percentage

7%

Debt instrument, term

10 years

Real Estate In Denver, Colorado

Business Acquisition [Line Items]

Business combination, consideration transferred

$ 4,600,000

Cash

1,700,000

Real Estate In Denver, Colorado | 7.12% Five-Year Promissory Note | Notes Payable to Banks

Business Acquisition [Line Items]

Notes payable

$ 2,900,000

Debt instrument, interest rate, stated percentage

7.12%

7.12%

Debt instrument, term

5 years

5 years

Debt instrument, face amount

$ 2,900,000

Acquisitions and Dispositions_2

Acquisitions and Dispositions - Schedule of Allocation of Fair Value of the Acquisition Price (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 16, 2023	Oct. 26, 2022	Sep. 30, 2022
Business Acquisition [Line Items]
Goodwill	$ 78,684			$ 67,767
Club In Dickinson, Texas
Business Acquisition [Line Items]
Current assets			$ 64
Property and equipment			4,884
Accrued liability			(95)
Deferred tax liability			(374)
Total net assets acquired			5,989
Goodwill			2,916
Acquisition price fair value			8,905
Club In Dickinson, Texas | Licenses
Business Acquisition [Line Items]
Indefinite-lived intangible assets			1,170
Club In Dickinson, Texas | Trade Names
Business Acquisition [Line Items]
Indefinite-lived intangible assets			$ 340
Baby Dolls-Chicas Locas
Business Acquisition [Line Items]
Current assets		$ 632
Property and equipment		16,570
Accounts payable		(632)
Total net assets acquired		53,494
Goodwill		9,853
Acquisition price fair value		63,347
Baby Dolls-Chicas Locas | Licenses
Business Acquisition [Line Items]
Indefinite-lived intangible assets		27,440
Baby Dolls-Chicas Locas | Trade Names
Business Acquisition [Line Items]
Indefinite-lived intangible assets		$ 9,484

Acquisitions and Dispositions_3

Acquisitions and Dispositions - Schedule of Preliminary Fair Value of Consideration (Details) - Baby Dolls-Chicas Locas $ in Thousands	Mar. 16, 2023 USD ($)
Business Acquisition [Line Items]
Cash	$ 25,000
Notes payable	25,500
Common stock	12,847
Total consideration fair value	$ 63,347

Acquisitions and Dispositions_4

Acquisitions and Dispositions - Schedule of Unaudited Pro Forma Combined Results of Operations (Details) - Baby Dolls-Chicas Locas - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Pro forma revenues	$ 77,055	$ 76,733	$ 231,479	$ 213,762
Pro forma net income attributable to RCIHH common stockholders	$ 9,085	$ 15,824	$ 26,129	$ 40,503
Pro forma earnings per share – basic (in dollars per share)	$ 0.96	$ 1.65	$ 2.77	$ 4.21
Pro forma earnings per share – diluted (in dollars per share)	$ 0.96	$ 1.65	$ 2.77	$ 4.21
Pro forma weighted average number of common shares outstanding - diluted (in shares)	9,430,225	9,589,675	9,430,236	9,628,461
Pro forma weighted average number of common shares outstanding - basic (in shares)	9,430,225	9,589,675	9,430,236	9,628,461

Revenues - Schedule of Disaggre

Revenues - Schedule of Disaggregation of Segment Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 77,055	$ 70,714	$ 218,540	$ 196,242
Recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	76,591	70,338	217,126	194,974
Recognized over time
Disaggregation of Revenue [Line Items]
Total revenues	464	376	1,414	1,268
Sales of alcoholic beverages
Disaggregation of Revenue [Line Items]
Total revenues	34,151	29,738	93,937	83,504
Sales of food and merchandise
Disaggregation of Revenue [Line Items]
Total revenues	11,405	11,574	32,757	33,628
Service revenues
Disaggregation of Revenue [Line Items]
Total revenues	26,663	25,444	77,916	67,821
Other revenues
Disaggregation of Revenue [Line Items]
Total revenues	4,836	3,958	13,930	11,289
Nightclubs
Disaggregation of Revenue [Line Items]
Total revenues	62,449	54,684	175,805	149,639
Nightclubs | Recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	61,986	54,320	174,481	148,386
Nightclubs | Recognized over time
Disaggregation of Revenue [Line Items]
Total revenues	463	364	1,324	1,253
Nightclubs | Sales of alcoholic beverages
Disaggregation of Revenue [Line Items]
Total revenues	26,144	21,061	70,433	57,901
Nightclubs | Sales of food and merchandise
Disaggregation of Revenue [Line Items]
Total revenues	5,288	4,639	14,705	13,726
Nightclubs | Service revenues
Disaggregation of Revenue [Line Items]
Total revenues	26,497	25,287	77,716	67,472
Nightclubs | Other revenues
Disaggregation of Revenue [Line Items]
Total revenues	4,520	3,697	12,951	10,540
Bombshells
Disaggregation of Revenue [Line Items]
Total revenues	14,397	15,789	42,143	45,893
Bombshells | Recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	14,396	15,777	42,098	45,879
Bombshells | Recognized over time
Disaggregation of Revenue [Line Items]
Total revenues	1	12	45	14
Bombshells | Sales of alcoholic beverages
Disaggregation of Revenue [Line Items]
Total revenues	8,007	8,677	23,504	25,603
Bombshells | Sales of food and merchandise
Disaggregation of Revenue [Line Items]
Total revenues	6,117	6,935	18,052	19,902
Bombshells | Service revenues
Disaggregation of Revenue [Line Items]
Total revenues	166	157	200	349
Bombshells | Other revenues
Disaggregation of Revenue [Line Items]
Total revenues	107	20	387	39
Other
Disaggregation of Revenue [Line Items]
Total revenues	209	241	592	710
Other | Recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	209	241	547	709
Other | Recognized over time
Disaggregation of Revenue [Line Items]
Total revenues	0	0	45	1
Other | Sales of alcoholic beverages
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Other | Sales of food and merchandise
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Other | Service revenues
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Other | Other revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ 209	$ 241	$ 592	$ 710

Revenues - Schedule of Reconcil

Revenues - Schedule of Reconciliation of Contract Liabilities with Customers (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2023 USD ($)
Contract With Customer Liability [Roll Forward]
Contract liabilities with customers, beginning	$ 234
Net Consideration Received (Refunded)	806
Recognized in Revenue	(416)
Contract liabilities with customers, ending	624
Ad revenue
Contract With Customer Liability [Roll Forward]
Contract liabilities with customers, beginning	82
Net Consideration Received (Refunded)	375
Recognized in Revenue	(370)
Contract liabilities with customers, ending	87
Expo revenue
Contract With Customer Liability [Roll Forward]
Contract liabilities with customers, beginning	8
Net Consideration Received (Refunded)	456
Recognized in Revenue	0
Contract liabilities with customers, ending	464
Franchise fees and other
Contract With Customer Liability [Roll Forward]
Contract liabilities with customers, beginning	144
Net Consideration Received (Refunded)	(25)
Recognized in Revenue	(46)
Contract liabilities with customers, ending	$ 73

Selected Account Information -

Selected Account Information - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Selected Account Information [Abstract]
Credit card receivables	$ 2,342	$ 2,687
Income tax refundable	2,040	2,979
ATM in-transit	891	819
Allowance for doubtful accounts	55	30
Other (net of allowance for doubtful accounts of $55 and $30, respectively)	2,160	2,025
Total accounts receivable, net	$ 7,433	$ 8,510

Selected Account Information _2

Selected Account Information - Narrative (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2023 USD ($) club	Mar. 31, 2023 USD ($) club	Jun. 30, 2022 USD ($) club unit	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Goodwill impairment	$ 1,200	$ 662	$ 400	$ 1,852
Number of clubs related to goodwill impairment | club	1	1
Impairment of assets	$ 2,631		1,722	$ 3,293	$ 1,722
Operating lease, impairment loss	$ 1,000
Number of clubs related to operating lease impairment | club	1
Property, Plant and Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Impairment of assets	$ 58		$ 1,000
Number of clubs related to asset impairment | club			2
Number of units related to asset impairment | unit			1
SOB Licenses
Financing Receivable, Allowance for Credit Loss [Line Items]
Indefinite-lived intangible assets impairment	$ 380		$ 293
Minimum
Financing Receivable, Allowance for Credit Loss [Line Items]
Receivable percentage	6%			6%
Notes receivable, term				1 year
Maximum
Financing Receivable, Allowance for Credit Loss [Line Items]
Receivable percentage	9%			9%
Notes receivable, term				20 years

Selected Account Information _3

Selected Account Information - Components of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Selected Account Information [Abstract]
Prepaid insurance	$ 2,746	$ 191
Prepaid legal	231	61
Prepaid taxes and licenses	727	391
Prepaid rent	401	296
Other	923	560
Total prepaid expenses and other current assets	$ 5,028	$ 1,499

Selected Account Information _4

Selected Account Information - Reconciliation of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023
Goodwill [Roll Forward]
Beginning balance, Gross				$ 88,921
Beginning balance, Accumulated Impairment				21,154
Beginning balance, Net				67,767
Acquisitions, Gross				12,769
Acquisitions, Accumulated Impairment				0
Acquisitions, Net				12,769
Impairment, Gross				0
Impairment, Accumulated Impairment				1,852
Impairment, Net	$ (1,200)	$ (662)	$ (400)	(1,852)
Ending balance, Gross	101,690			101,690
Ending balance, Accumulated Impairment	23,006			23,006
Ending balance, Net	$ 78,684			$ 78,684

Selected Account Information _5

Selected Account Information - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Indefinite-lived Intangible Assets [Line Items]
Total intangible assets, net	$ 181,262	$ 144,049
Licenses
Indefinite-lived Intangible Assets [Line Items]
Definite-lived:	24,187	25,962
Leases acquired in-place
Indefinite-lived Intangible Assets [Line Items]
Definite-lived:	157	117
Noncompete agreements
Indefinite-lived Intangible Assets [Line Items]
Definite-lived:	13	55
Favorable leases
Indefinite-lived Intangible Assets [Line Items]
Definite-lived:	828	78
Software
Indefinite-lived Intangible Assets [Line Items]
Definite-lived:	909	723
Licenses
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived:	132,202	103,972
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived:	22,943	13,119
Domain names
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived:	$ 23	$ 23

Selected Account Information _6

Selected Account Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Selected Account Information [Abstract]
Insurance	$ 2,394	$ 30
Sales and liquor taxes	2,305	2,227
Payroll and related costs	4,032	3,186
Property taxes	2,081	2,618
Interest	656	499
Patron tax	600	467
Unearned revenues	624	234
Lawsuit settlement	1,903	246
Other	3,137	1,821
Total accrued liabilities	$ 17,732	$ 11,328

Selected Account Information _7

Selected Account Information - Schedule of Selling, General and Administrative Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Selected Account Information [Abstract]
Taxes and permits	$ 2,969,000	$ 2,418,000	$ 8,392,000	$ 7,015,000
Advertising and marketing	3,284,000	2,460,000	8,685,000	7,091,000
Supplies and services	2,865,000	2,068,000	7,946,000	6,223,000
Insurance	2,718,000	2,481,000	7,538,000	7,357,000
Legal	754,000	328,000	3,035,000	2,286,000
Lease	1,836,000	1,736,000	5,363,000	4,948,000
Charge card fees	1,792,000	1,829,000	5,372,000	4,626,000
Utilities	1,443,000	1,151,000	4,067,000	3,194,000
Security	1,523,000	1,081,000	3,995,000	3,218,000
Stock-based compensation	470,000	0	2,117,000	0
Accounting and professional fees	1,050,000	818,000	3,225,000	2,786,000
Repairs and maintenance	1,367,000	960,000	3,738,000	2,588,000
Other	1,732,000	2,242,000	5,088,000	5,163,000
Total selling, general and administrative expenses	$ 23,803,000	$ 19,572,000	$ 68,561,000	$ 56,495,000

Selected Account Information _8

Selected Account Information - Components of Other Charges (Gains) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Selected Account Information [Abstract]
Impairment of assets	$ 2,631	$ 1,722	$ 3,293	$ 1,722
Settlement of lawsuits	63	132	3,183	709
Gain on disposal of businesses and assets	(105)	(266)	(692)	(666)
Gain on insurance	0	(87)	(91)	(408)
Other charges, net	$ 2,589	$ 1,501	$ 5,693	$ 1,357

Debt (Details)

Debt (Details)	Jun. 20, 2023	Jun. 18, 2023 USD ($)	Mar. 16, 2023 USD ($) monthly_installment note property	Mar. 09, 2023 USD ($)	Feb. 07, 2023 USD ($) note	Dec. 20, 2022 USD ($) monthly_installment	Nov. 18, 2022 USD ($) monthly_installment	Oct. 26, 2022 USD ($) monthly_installment	Oct. 10, 2022 USD ($) monthly_installment	Jun. 30, 2023 USD ($) note	Sep. 30, 2022 USD ($)
Debt Instrument [Line Items]
Long-term debt, maturity, year one										$ 24,400,000
Long-term debt, maturity, year two										39,100,000
Long-term debt, maturity, year three										12,300,000
Long-term debt, maturity, year four										13,100,000
Long-term debt, maturity, year five										22,600,000
Long-term debt, maturity, after year five										135,500,000
Debt issuance costs, net										3,100,000	$ 3,400,000
Baby Dolls-Chicas Locas
Debt Instrument [Line Items]
Number of real estate properties acquired | property			5
Scheduled Balloon Payments Of Debt
Debt Instrument [Line Items]
Long-term debt, maturity, year one										7,500,000
Long-term debt, maturity, year two										26,800,000
Long-term debt, maturity, year three										0
Long-term debt, maturity, year four										0
Long-term debt, maturity, year five										8,700,000
Long-term debt, maturity, after year five										$ 70,600,000
Notes Payable to Banks
Debt Instrument [Line Items]
Debt instrument, face amount							$ 1,500,000		$ 2,300,000
Debt instrument, term							18 months		18 months
Number of monthly installments | monthly_installment							17		17
Debt issuance costs									$ 26,000
Notes Payable to Banks | 6% Fifteen-Year Promissory Note | Club In Dickinson, Texas - Adult Entertainment Business
Debt Instrument [Line Items]
Debt instrument, face amount								$ 5,000,000
Debt instrument, term								15 years
Debt instrument, interest rate, stated percentage								6%
Number of monthly installments | monthly_installment								180
Debt instrument, periodic payment								$ 42,193
Notes Payable to Banks | 6.67% Five-Year Promissory Note | Food Hall Property In Greenwood Village, Colorado
Debt Instrument [Line Items]
Debt instrument, face amount						$ 3,300,000
Debt instrument, term						5 years
Debt instrument, interest rate, stated percentage						6.67%
Number of monthly installments | monthly_installment						59
Debt instrument, periodic payment, principal						$ 22,805
Notes Payable to Banks | Six Seller Financed Promissory Note
Debt Instrument [Line Items]
Debt instrument, face amount					$ 2,000,000
Debt instrument, term					24 months
Debt instrument, interest rate, stated percentage					7%
Debt instrument, periodic payment					$ 39,602,000
Number of seller-financed notes | note					6
Period of principal and interest					23 months
Amortization period of interest					60 months
Notes Payable to Banks | Nine Secured Promissory Notes
Debt Instrument [Line Items]
Debt instrument, face amount			$ 25,500,000
Debt instrument, term			10 years
Debt instrument, interest rate, stated percentage			7%
Number of monthly installments | monthly_installment			120
Debt instrument, periodic payment			$ 296,077
Number of seller-financed notes | note			9
Notes Payable to Banks | Nine Secured Promissory Notes | Baby Dolls-Chicas Locas
Debt Instrument [Line Items]
Number of seller-financed notes | note										9
Notes Payable to Banks | Promissory Note Related To Real Estate Properties
Debt Instrument [Line Items]
Debt instrument, face amount			$ 5,000,000
Principal payment			$ 1,000,000
Notes Payable to Banks | 7.12% Five-Year Promissory Note | Real Estate In Denver, Colorado
Debt Instrument [Line Items]
Debt instrument, face amount		$ 2,900,000
Debt instrument, term	5 years	5 years
Debt instrument, interest rate, stated percentage	7.12%	7.12%
Debt instrument, periodic payment, principal		$ 20,654
Notes Payable to Banks | Base Rate
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage							6%		6%
Notes Payable to Banks | Prime Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate							0.50%		0.50%
Notes Payable to Banks | Prime Rate Floor
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate							6%		6%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount				$ 10,000,000
Debt instrument, term				24 months
Debt issuance costs				$ 115,000
Letters of credit outstanding, amount				10,000,000
Principal balance threshold for revolver feature				5,000,000
Maximum borrowing capacity				$ 5,000,000
Unused capacity, commitment fee percentage				0.50%
Average outstanding amount, threshold for non-usage fee (less than)				$ 3,000,000
Aggregate advances amount, threshold for non-usage fee (less than)				$ 3,000,000
Debt issuance costs, amortization period				24 months
Compensating balance				$ 3,000,000
Minimum tangible net worth				20,000,000
Line of Credit | Baby Dolls-Chicas Locas
Debt Instrument [Line Items]
Debt instrument, face amount				$ 10,000,000
Line of Credit | Baby Dolls-Chicas Locas | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount										$ 10,000,000
Line of Credit | Prime Rate | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				1%

Stock-based Compensation (Detai

Stock-based Compensation (Details)		3 Months Ended		9 Months Ended
	Feb. 09, 2022 member shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Feb. 07, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation | $		$ 470,000	$ 0	$ 2,117,000	$ 0
Unrecognized stock based compensation expense, stock options | $		$ 4,900,000		$ 4,900,000
Compensation cost not yet recognized, period for recognition				2 years 7 months 6 days
Vesting period	4 years
Expiration period	5 years
Weighted average grant date fair value (in dollars per share) | $ / shares				$ 31.37
Options exercisable (in shares)		120,000		120,000
Share-Based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dilutive share (in shares)		300,000		300,000
Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	20%
Share-Based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	20%
Share-Based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	20%
Share-Based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	20%
Share-Based Payment Arrangement, Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	20%
2022 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	50,000
Number of members of management receiving shares | member	6
2022 Stock Option Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)						300,000

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Current income tax expense	$ 2.3	$ 3.8	$ 7.4	$ 10.1
Effective income tax rate	20.10%	21.30%	21.60%	22.10%

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Federal statutory income tax expense	21%	21%	21%	21%
State income taxes, net of federal benefit	2.10%	2.90%	3.40%	2.90%
Permanent differences	0.50%	0.40%	0.50%	0.40%
Tax credits	(3.70%)	(3.20%)	(3.40%)	(2.80%)
Other	0.10%	0.10%	0.10%	0.50%
Total income tax expense	20.10%	21.30%	21.60%	22.10%

Commitments and Contingencies -

Commitments and Contingencies - Tax Patron Tax (Details)	9 Months Ended
	Jun. 30, 2023 USD ($) plaintiff
Commitments and Contingencies Disclosure [Abstract]
Number of plaintiffs | plaintiff	5
Patron tax on monthly basis per customer | $	$ 5

Commitments and Contingencies_2

Commitments and Contingencies - Indemnity Insurance Corporation (Details) - Indemnity Insurance Corporation - claim		9 Months Ended
	Apr. 10, 2014	Jun. 30, 2023
Loss Contingencies [Line Items]
Percentage of costs of litigation	100%
Number of claims pending		1
Loss contingency, number of claims filed		71

Commitments and Contingencies_3

Commitments and Contingencies - Other (Details) - USD ($) $ in Millions	1 Months Ended
	Mar. 31, 2023	Apr. 30, 2017
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party	$ 2.8
Compensatory Damages | JAI Phoenix
Loss Contingencies [Line Items]
Loss contingency, damages sought, value		$ 1.4
Punitive Damages | JAI Phoenix
Loss Contingencies [Line Items]
Loss contingency, damages sought, value		$ 4

Commitments and Contingencies_4

Commitments and Contingencies - General (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Settlement of lawsuits	$ 63	$ 132	$ 3,183	$ 709
Lawsuit settlement	$ 1,900		$ 1,900		$ 246

Segment Information - Schedule

Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Segment Reporting Information [Line Items]
Revenues (from external customers)	$ 77,055	$ 70,714	$ 218,540	$ 196,242
Income (loss) from operations	15,515	20,507	45,840	53,499
Depreciation and amortization	4,041	2,565	11,108	7,636
Capital expenditures	9,029	3,183	29,919	17,173
Total assets	620,107		620,107		$ 530,738
Nightclubs
Segment Reporting Information [Line Items]
Revenues (from external customers)	62,449	54,684	175,805	149,639
Income (loss) from operations	20,392	22,459	61,127	60,321
Depreciation and amortization	2,915	1,880	7,864	5,633
Capital expenditures	5,915	1,678	14,598	12,568
Total assets	495,412		495,412		437,096
Bombshells
Segment Reporting Information [Line Items]
Revenues (from external customers)	14,397	15,789	42,143	45,893
Income (loss) from operations	1,701	3,065	5,323	9,335
Depreciation and amortization	611	449	2,000	1,332
Capital expenditures	1,438	1,188	11,940	3,393
Total assets	84,207		84,207		62,021
Other
Segment Reporting Information [Line Items]
Revenues (from external customers)	209	241	592	710
Income (loss) from operations	(300)	(82)	(653)	(159)
Depreciation and amortization	212	6	338	19
Capital expenditures	165	145	243	693
Total assets	2,635		2,635		2,635
Corporate
Segment Reporting Information [Line Items]
Income (loss) from operations	(6,278)	(4,935)	(19,957)	(15,998)
Depreciation and amortization	303	230	906	652
Capital expenditures	1,511	$ 172	3,138	$ 519
Total assets	$ 37,853		$ 37,853		$ 28,986

Segment Information - Narrative

Segment Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Segment Reporting Information [Line Items]
Total revenues	$ 77,055	$ 70,714	$ 218,540	$ 196,242
Nightclubs
Segment Reporting Information [Line Items]
Total revenues	62,449	54,684	175,805	149,639
Goodwill transfers					$ 9,000
Nightclubs | Intercompany Rental Revenue
Segment Reporting Information [Line Items]
Total revenues	4,300	3,400	11,900	9,900
Corporate
Segment Reporting Information [Line Items]
Goodwill transfers					$ (9,000)
Corporate | Intercompany Rental Revenue
Segment Reporting Information [Line Items]
Total revenues	32	32	294	231
Other
Segment Reporting Information [Line Items]
Total revenues	209	241	592	710
Other | Intercompany Sales
Segment Reporting Information [Line Items]
Total revenues	$ 73	$ 42	$ 188	$ 164

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)		3 Months Ended		9 Months Ended
	Oct. 12, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Related Party Transaction [Line Items]
Proceeds from related party debt				$ 0	$ 650,000
Accounts payable		$ 7,762,000		7,762,000		$ 5,482,000
Nottingham Creations and Sherwood Forest Creations LLC
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction		0	$ 42,093	188,285	69,242
TW Mechanical LLC
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction		8,823	16,500	9,202	101,200
Related Party | Ed Anakar and Nourdean Anakar
Related Party Transaction [Line Items]
Proceeds from related party debt	$ 500,000
Related Party | Allen Chhay and Bradley Chhay
Related Party Transaction [Line Items]
Proceeds from related party debt	150,000
Related Party | Nottingham Creations and Sherwood Forest Creations LLC
Related Party Transaction [Line Items]
Accounts payable		17,386		17,386		92,808
Related Party | TW Mechanical LLC
Related Party Transaction [Line Items]
Accounts payable		$ 0		$ 0		9,338
Related party, ownership percentage		50%		50%
Related Party | TW Mechanical LLC | Third-Party General Contractor
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction		$ 171,435	$ 0	$ 235,738	$ 3,809
Commercial Bank Indebtedness
Related Party Transaction [Line Items]
Long-term debt		$ 120,200,000		$ 120,200,000		$ 115,100,000
Unsecured Debt
Related Party Transaction [Line Items]
Debt instrument, face amount	$ 17,000,000

Leases - Schedule of Lease Expe

Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Line Items]
Operating lease expense – fixed payments	$ 1,327	$ 1,215	$ 3,874	$ 3,482
Variable lease expense	406	404	1,192	971
Short-term and other lease expense (includes $116 and $53 recorded in advertising and marketing for the three months ended June 30, 2023 and 2022, respectively, and $243 and $183 for the nine months ended June 30, 2023 and 2022, respectively; and $145 and $120 recorded in repairs and maintenance for the three months ended June 30, 2023 and 2022, respectively, and $410 and $310 for the nine months ended June 30, 2023 and 2022, respectively; see Note 6)	364	290	950	988
Sublease income	0	(1)	0	(4)
Total lease expense, net	2,097	1,908	6,016	5,437
Operating cash outflows from operating leases	$ 2,055	$ 1,855	$ 5,885	$ 5,294
Weighted average remaining lease term – operating leases	10 years 8 months 12 days	11 years	10 years 8 months 12 days	11 years
Weighted average discount rate – operating leases	5.80%	5.60%	5.80%	5.60%
Advertising and marketing	$ 3,284	$ 2,460	$ 8,685	$ 7,091
Repairs and maintenance	1,367	960	3,738	2,588
Equipment
Property, Plant and Equipment [Line Items]
Advertising and marketing	116	53	243	183
Repairs and maintenance	$ 145	$ 120	$ 410	$ 310

Leases - Schedule of Future Mat

Leases - Schedule of Future Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
July 2023 - June 2024	$ 5,021
July 2024 - June 2025	5,087
July 2025 - June 2026	5,185
July 2026 - June 2027	5,118
July 2027 - June 2028	4,425
Thereafter	27,613
Future maturities of lease liabilities	52,449
Principal Payments
Lessee, Lease, Description [Line Items]
July 2023 - June 2024	2,923
July 2024 - June 2025	3,161
July 2025 - June 2026	3,445
July 2026 - June 2027	3,580
July 2027 - June 2028	3,081
Thereafter	22,674
Future maturities of lease liabilities	38,864
Interest Payments
Lessee, Lease, Description [Line Items]
July 2023 - June 2024	2,098
July 2024 - June 2025	1,926
July 2025 - June 2026	1,740
July 2026 - June 2027	1,538
July 2027 - June 2028	1,344
Thereafter	4,939
Future maturities of lease liabilities	$ 13,585

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions				1 Months Ended
	Aug. 03, 2023	Feb. 06, 2023	Dec. 05, 2022	Aug. 04, 2023
Real Estate in Central City, Colorado
Subsequent Event [Line Items]
Payments to acquire real estate		$ 2.2	$ 2.5
Subsequent Event
Subsequent Event [Line Items]
Purchase of treasure shares (in shares)				10,440
Shares Acquired, Average Cost Per Share				$ 69.48
Subsequent Event | Real Estate in Central City, Colorado
Subsequent Event [Line Items]
Payments to acquire real estate	$ 2.9