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ACQUISITIONS
 6 Months Ended
Mar. 31, 2015
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
9.
ACQUISITIONS
 
2015
 
On October 30, 2014, a 51% owned subsidiary of the Company (“Robust”) acquired certain assets and liabilities of Robust Energy LLC for $200,000 in cash and 200,000 shares of its restricted common stock for a total purchase price of $5.0 million. The Company has also agreed to issue 50,000 shares of RCIHH common stock to the two principals of Robust Energy LLC if Robust has net income of at least $1 million during the 2015 calendar year. The principals entered into a Lock-Up Agreement with the Company in connection with the issuance by the Company of its shares of common stock as explained above, which will provide that none of the shares will be sold for a period of one year after the date of issuance and, thereafter, neither principal will sell more than 1/6th of their respective shares per month that they receive in connection herewith. Robust is an energy drink distributor, targeting the on premises bar and mixer market.
 
The following information summarizes the allocation of fair values assigned to the assets and liabilities at the purchase date.
 
(in thousands)
 
 
 
 
Inventory and accounts receivable
 
$
501
 
Equipment, furniture and fixture
 
 
356
 
Definite-lived intangible
 
 
10,275
 
Accounts payable
 
 
(1,196)
 
Notes payable
 
 
(963)
 
Noncontrolling interest
 
 
(3,888)
 
Net assets
 
$
5,085
 
 
In accordance with GAAP, the Company recorded a gain of approximately $577,000 on the value of its earlier 15% investment in this company.
 
 
On January 13, 2015 a Company subsidiary purchased Down in Texas Saloon gentlemen’s club in an Austin, Texas suburb. As part of the transaction, another subsidiary also purchased the club’s real estate. Total consideration of $6.8 million consisted of $3.5 million for the club business and $3.3 million for its 3.5 acres of real estate. Payment was in the form of $1 million in cash and $1.4 million in seller financing at 6% annual interest, with the balance provided by commercial bank financing at a variable interest rate equal to the prime rate plus 2%, but in no event less than 6.5%.
 
The following information summarizes the allocation of fair values assigned to the assets at the purchase date.
 
(in thousands)
 
Buildings and land
 
$
3,130
 
Furniture and fixtures
 
 
20
 
Inventory
 
 
4
 
SOB license
 
 
3,566
 
Noncompete
 
 
100
 
Net assets
 
$
6,820