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Revenues
 3 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenues

5. 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 income. The Company recognizes revenue when it satisfies a performance obligation (point in time of sale) by transferring control over a product or service to a customer.

 

Commission revenues, such as ATM commission, are recognized when the basis for such commission has transpired. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention, which normally occurs during our fiscal fourth quarter. Lease revenue (included in other revenues) is recognized when earned (recognized over time) and is more appropriately covered by guidance under ASC 842, Leases. See Note 13.

 

Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 11), are shown below (in thousands):

 

   Three Months Ended December 31, 2021   Three Months Ended December 31, 2020 
   Nightclubs   Bombshells   Other   Total   Nightclubs   Bombshells   Other   Total 
Sales of alcoholic beverages  $18,167   $8,264   $-   $26,431   $9,634   $7,726   $-   $17,360 
Sales of food and merchandise   4,589    6,305    -    10,894    3,423    5,186    -    8,609 
Service revenues   20,684    192    -    20,876    9,998    62    -    10,060 
Other revenues   3,341    10    284    3,635    2,142    32    195    2,369 
   $46,781   $14,771   $284   $61,836   $25,197   $13,006   $195   $38,398 
                                         
Recognized at a point in time  $46,344   $14,770   $283   $61,397   $24,835   $13,006   $193   $38,034 
Recognized over time   437*   1    1    439    362*   -    2    364 
   $46,781   $14,771   $284   $  61,836   $25,197   $13,006   $195   $  38,398 

 

* 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, 2021

  

Consideration

Received

  

Recognized in

Revenue

  

Balance at

December 31,

2021

 
Ad revenue  $      84   $ 280   $(167)  $197 
Expo revenue   151    116    -    267 
Other (including franchise fees)   119    -    (20)   99 
   $354   $396   $(187)  $563 

 

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.

 

 

RCI HOSPITALITY HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)