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Revenues | 9 Months Ended
--- | ---
Jun. 30, 2021
Revenue from Contract with Customer [Abstract] |
Revenues | 4. Revenues The Company recognizes revenue from the sale of alcoholic beverages, food and merchandise, service and other revenues at the point-of-sale upon receipt of cash, check, or credit card charge, net of discounts and promotional allowances based on consideration specified in implied contracts with customers. Sales and liquor taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying unaudited condensed consolidated statements of operations. The Company recognizes revenue when it satisfies a performance obligation (point in time of sale) by transferring control over a product or service to a customer. Commission revenues, such as ATM commission, are recognized when the basis for such commission has transpired. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention, which normally occurs during our fiscal fourth quarter. Due to the pandemic, the Expo convention, initially scheduled in August 2020, was moved to May 2021, hence, no Expo-related revenue in fiscal 2020. Lease revenue (included in other revenues) is recognized when earned (recognized over time) and is more appropriately covered by guidance under ASC 842, Leases. See Note 13. RCI HOSPITALITY HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 11), are shown below (in thousands): Schedule of Disaggregation of Segment Revenues
|  | Three Months Ended June 30, 2021 |  |  | Three Months Ended June 30, 2020 |
|  | Nightclubs |  |  | Bombshells |  |  | Other |  |  | Total |  |  | Nightclubs |  |  | Bombshells |  |  | Other |  |  | Total |
Sales of alcoholic beverages |  | $ | 16,130 |  |  | $ | 8,962 |  |  | $ | - |  |  | $ | 25,092 |  |  | $ | 1,777 |  |  | $ | 5,846 |  |  | $ | - |  |  | $ | 7,623 |
Sales of food and merchandise |  |  | 5,062 |  |  |  | 6,996 |  |  |  | - |  |  |  | 12,058 |  |  |  | 774 |  |  |  | 2,678 |  |  |  | - |  |  |  | 3,452 |
Service revenues |  |  | 16,772 |  |  |  | 108 |  |  |  | - |  |  |  | 16,880 |  |  |  | 2,906 |  |  |  | 1 |  |  |  | - |  |  |  | 2,907 |
Other revenues |  |  | 3,067 |  |  |  | 11 |  |  |  | 752 |  |  |  | 3,830 |  |  |  | 556 |  |  |  | 6 |  |  |  | 177 |  |  |  | 739 |
|  | $ | 41,031 |  |  | $ | 16,077 |  |  | $ | 752 |  |  | $ | 57,860 |  |  | $ | 6,013 |  |  | $ | 8,531 |  |  | $ | 177 |  |  | $ | 14,721 |
Recognized at a point in time |  | $ | 40,599 |  |  | $ | 16,075 |  |  | $ | 751 |  |  | $ | 57,425 |  |  | $ | 5,781 |  |  | $ | 8,531 |  |  | $ | 175 |  |  | $ | 14,487 |
Recognized over time |  |  | 432 | * |  |  | 2 |  |  |  | 1 |  |  |  | 435 |  |  |  | 232 | * |  |  | - |  |  |  | 2 |  |  |  | 234 |
|  | $ | 41,031 |  |  | $ | 16,077 |  |  | $ | 752 |  |  | $ | 57,860 |  |  | $ | 6,013 |  |  | $ | 8,531 |  |  | $ | 177 |  |  | $ | 14,721 |
|  | Nine Months Ended June 30, 2021 |  |  | Nine Months Ended June 30, 2020 |
|  | Nightclubs |  |  | Bombshells |  |  | Other |  |  | Total |  |  | Nightclubs |  |  | Bombshells |  |  | Other |  |  | Total |
Sales of alcoholic beverages |  | $ | 38,398 |  |  | $ | 24,327 |  |  | $ | - |  |  | $ | 62,725 |  |  | $ | 28,321 |  |  | $ | 16,964 |  |  | $ | - |  |  | $ | 45,285 |
Sales of food and merchandise |  |  | 12,567 |  |  |  | 17,638 |  |  |  | - |  |  |  | 30,205 |  |  |  | 6,837 |  |  |  | 10,541 |  |  |  | - |  |  |  | 17,378 |
Service revenues |  |  | 38,216 |  |  |  | 226 |  |  |  | - |  |  |  | 38,442 |  |  |  | 34,290 |  |  |  | 158 |  |  |  | - |  |  |  | 34,448 |
Other revenues |  |  | 7,834 |  |  |  | 27 |  |  |  | 1,084 |  |  |  | 8,945 |  |  |  | 5,791 |  |  |  | 21 |  |  |  | 618 |  |  |  | 6,430 |
|  | $ | 97,015 |  |  | $ | 42,218 |  |  | $ | 1,084 |  |  | $ | 140,317 |  |  | $ | 75,239 |  |  | $ | 27,684 |  |  | $ | 618 |  |  | $ | 103,541 |
Recognized at a point in time |  | $ | 95,816 |  |  | $ | 42,215 |  |  | $ | 1,080 |  |  | $ | 139,111 |  |  | $ | 74,192 |  |  | $ | 27,684 |  |  | $ | 605 |  |  | $ | 102,481 |
Recognized over time |  |  | 1,199 | * |  |  | 3 |  |  |  | 4 |  |  |  | 1,206 |  |  |  | 1,047 | * |  |  | - |  |  |  | 13 |  |  |  | 1,060 |
|  | $ | 97,015 |  |  | $ | 42,218 |  |  | $ | 1,084 |  |  | $ | 140,317 |  |  | $ | 75,239 |  |  | $ | 27,684 |  |  | $ | 618 |  |  | $ | 103,541 |
* | Lease revenue (included in Other Revenues) is 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): Schedule of Reconciliation of Contract Liabilities with Customers
|  | Balance at September 30, 2020 |  |  | Consideration Received |  |  | Recognized in Revenue |  |  | Balance at June 30, 2021 |
Ad revenue |  | $ | 92 |  |  | $ | 456 |  |  | $ | (477 | ) |  | $ | 71 |
Expo revenue |  |  | 211 |  |  |  | 247 |  |  |  | (448 | ) |  |  | 10 |
Other |  |  | 33 |  |  |  | 123 |  |  |  | (6 | ) |  |  | 150 |
|  | $ | 336 |  |  | $ | 826 |  |  | $ | (931 | ) |  | $ | 231 |
Contract liabilities with customers are included in accrued liabilities as unearned revenues in our unaudited condensed consolidated balance sheets (see also Note 5), while the revenues associated with these contract liabilities are included in other revenues in our unaudited condensed consolidated statements of operations. On December 22, 2020, the Company signed a franchise development agreement with a group of private investors to open three Bombshells locations in San Antonio, Texas over a period of five years, and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, all in Texas. Upon execution of the agreement, the Company collected $75,000 in development fees representing 100% of the initial franchise fee of the first restaurant and 50% of the initial franchise fee of the second restaurant. Revenue from initial franchise fees is recognized as the performance obligations are satisfied over the term of the franchise agreement.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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