Revenues

9 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenues

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 June 30, 2022									Three Months Ended June 30, 2021
	Nightclubs			Bombshells		Other		Total		Nightclubs			Bombshells		Other		Total
Sales of alcoholic beverages	$	21,061		$	8,677	$	—	$	29,738	$	16,130		$	8,962	$	—	$	25,092
Sales of food and merchandise	4,639			6,935		—		11,574		5,062			6,996		—		12,058
Service revenues	25,287			157		—		25,444		16,772			108		—		16,880
Other revenues	3,697			20		241		3,958		3,067			11		752		3,830
	$	54,684		$	15,789	$	241	$	70,714	$	41,031		$	16,077	$	752	$	57,860
Recognized at a point in time	$	54,320		$	15,777	$	241	$	70,338	$	40,599		$	16,075	$	751	$	57,425
Recognized over time	364		*	12		—		376		432		*	2		1		435
	$	54,684		$	15,789	$	241	$	70,714	$	41,031		$	16,077	$	752	$	57,860
	Nine Months Ended June 30, 2022									Nine Months Ended June 30, 2021
	Nightclubs			Bombshells		Other		Total		Nightclubs			Bombshells		Other		Total
Sales of alcoholic beverages	$	57,901		$	25,603	$	—	$	83,504	$	38,398		$	24,327	$	—	$	62,725
Sales of food and merchandise	13,726			19,902		—		33,628		12,567			17,638		—		30,205
Service revenues	67,472			349		—		67,821		38,216			226		—		38,442
Other revenues	10,540			39		710		11,289		7,834			27		1,084		8,945
	$	149,639		$	45,893	$	710	$	196,242	$	97,015		$	42,218	$	1,084	$	140,317
Recognized at a point in time	$	148,386		$	45,879	$	709	$	194,974	$	95,816		$	42,215	$	1,080	$	139,111
Recognized over time	1,253		*	14		1		1,268		1,199		*	3		4		1,206
	$	149,639		$	45,893	$	710	$	196,242	$	97,015		$	42,218	$	1,084	$	140,317

* 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 June 30, 2022
Ad revenue	$	84	$	530	$	(480)	$	134
Expo revenue	151		306		—		457
Other (including franchise fees)	119		16		(5)		130
	$	354	$	852	$	(485)	$	721

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.

On May 2, 2022, the Company signed a franchise development agreement with a private investor to open three Bombshells locations in the state of Alabama over a period of five years. Upon execution of the agreement, the Company received $50,000 in development fees representing 100% of the initial franchise fee of the first restaurant.