SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jun. 30, 2011

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

3. SIGNIFICANT ACCOUNTING POLICIES

Following are certain accounting principles and disclosures which are new since September 30, 2010.

Marketable Securities

Marketable securities at June 30, 2011 consist of bond funds. ASC 320, Investments in Debt and Equity Securities , requires certain investments be recorded at fair value or amortized cost. The appropriate classification of the investments in marketable equity is determined at the time of purchase and re-evaluated at each balance sheet date. As of June 30, 2011, the Company’s marketable securities were classified as available-for-sale, which are carried at fair value, with unrealized gains and losses reported as accumulated other comprehensive loss within the permanent stockholders’ equity section of the accompanying consolidated balance sheets. The cost of marketable securities sold is determined on a specific identification basis. The fair value of marketable securities is based on quoted market prices based on Level 1 inputs — quoted prices (unadjusted) for identical assets or liabilities in active markets. There have been no realized gains or losses related to marketable securities for the nine month periods ended June 30, 2011 or 2010.  Marketable securities held at June 30, 2011 have a cost basis of approximately $505,056.

Fair Value of Financial Instruments

The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments.  Marketable securities are adjusted to fair market value at each balance sheet date.  The estimated fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of short and long-term debt also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes.

Discontinued Operations

In March 2011, the Company made the decision to sell its Las Vegas location and, in April 2011, sharply reduced its operations in order to eliminate losses as it seeks a buyer for the property.  The Company believes that it has done everything possible to make this location viable since its acquisition in 2008 and now believes it is in its shareholders’ best interests not to continue these efforts.  The club was shuttered and the landlord took over the property in June 2011.  Therefore, this club is recognized as a discontinued operation in the accompanying consolidated financial statements and has recognized a loss upon the closure of the club of $2.0 million in discontinued operations.

The Company has plans to sell a portion of the membership interest in the entity that previously operated its Rick’s Cabaret in Austin, Texas.  When the sale is closed, the Company will deconsolidate the subsidiary and carry it as an equity-method investment.  Accordingly, the club is recognized as a discontinued operation in the accompanying consolidated financial statements.