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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands):

 Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

						Fair Value at Reporting Date Using
		September 30,				Quoted Prices in Active Markets for Identical Asset				Significant Other Observable Inputs				Significant Unobservable Inputs
Description		2021				(Level 1)				(Level 2)				(Level 3)
Property and equipment		$	2,044			$	-			$	-			$	2,044
Indefinite-lived intangibles			2,008				-				-				2,008
Goodwill			2,096				-				-				2,096
Operating lease right-of-use assets*			491				-				-				491
Operating lease liabilities*			(491	)			-				-				(491	)
Asset held for sale			3,007				-				3,007				-

* Measured at the lease modification dates.

						Fair Value at Reporting Date Using
		September 30,				Quoted Prices in Active Markets for Identical Asset				Significant Other Observable Inputs				Significant Unobservable Inputs
Description		2020				(Level 1)				(Level 2)				(Level 3)
Property and equipment		$	6,042			$	-			$	-			$	6,042
Indefinite-lived intangibles			656				-				-				656
Goodwill			5,883				-				-				5,883
Operating lease right-of-use assets**			27,310				-				-				27,310
Operating lease liabilities**			(28,551	)			-				-				(28,551	)
Other assets (equity securities)			84				84				-				-

** Measured at October 1, 2019, upon the adoption of ASC 842.

RCI HOSPITALITY HOLDINGS, INC.

Notes to Consolidated Financial Statements

2. Summary of Significant Accounting Policies - continued

		Unrealized Gain (Loss/Impairments) Recognized
		Years Ended September 30,
Description		2021				2020				2019
Goodwill		$	(6,307	)		$	(7,944	)		$	(1,638	)
Property and equipment, net (including held for sale)			(2,202	)			(302	)			(4,224	)
Indefinite-lived intangibles			(5,296	)			(2,265	)			(178	)
Operating lease right-of-use assets			-				(104	)			-
Other assets (equity securities)			(84	)			(64	)			(612	)

Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement

The significant unobservable inputs used in our level 3 fair value measurements are as follows:

Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement

Assets		Valuation Techniques		Unobservable Input		Range (Weighted Average)
Property and equipment		Discounted cash flow		EBITDA multiple		8x (8x)
				Revenue/EBITDA growth rate		0% - 2.5% (1%)
				Weighted average cost of capital		13% - 17% (15%)
Goodwill		Discounted cash flow		EBITDA multiple		8x (8x)
				Revenue/EBITDA growth rate		0% - 2.5% (1%)
				Weighted average cost of capital		13% - 17% (15%)
SOB licenses		Multiperiod excess earnings		EBITDA multiple		8x (8x)
				Revenue/EBITDA growth rate		0% - 2.5% (1%)
				Weighted average cost of capital		13% - 17% (15%)
				Contributory asset charges rate		1.4% - 8.0% (4%)
Tradename		Relief-from-royalty method		Revenue growth rate		0% - 2.5% (2.5%)
				Terminal multiple		8x (8x)
				Weighted average cost of capital		15% (15%)
Operating lease right-of-use assets		Discounted cash flow		EBITDA growth rate		0% - 2.5% (1%)
				Weighted average cost of capital		13% - 17% (15%)

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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