Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Reconciliation of Income Tax Expense

Income tax expense for the years ended September 30, 2019 and 2018 is as follows:

 

 

 

Year Ended

 

 

Year Ended

 

 

 

September 30,

2019

 

 

September 30,

2018

 

Current expense:

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

(17

)

State

 

 

237

 

 

 

244

 

 

 

 

237

 

 

 

227

 

Deferred expense:

 

 

 

 

 

 

 

 

Federal

 

 

(1,024

)

 

 

3,471

 

State

 

 

(1,226

)

 

 

368

 

Change in valuation allowance

 

 

388

 

 

 

341

 

 

 

 

(1,862

)

 

 

4,180

 

Total income tax expense

 

$

(1,625

)

 

$

4,407

 

Reconciliation between Effective and Statutory Income Tax Rates

A reconciliation of the differences between the effective and statutory income tax rates for years ended September 30, 2019 and 2018:

 

 

 

Year Ended

 

 

Year Ended

 

 

 

September 30,

2019

 

 

September 30,

2018

 

Federal statutory rates

 

 

21.0

%

 

 

24.3

%

State income taxes, net of federal benefit

 

 

11.3

%

 

 

3.3

%

Permanent differences

 

 

(0.9

)%

 

 

0.7

%

Impact of federal rate change from Tax Act

 

 

 

 

 

29.4

%

Bargain gain - purchase accounting

 

 

 

 

 

(14.1

)%

Property & equipment adjustment

 

 

(0.5

)%

 

 

(2.6

)%

Federal carryforward attributes trued up

 

 

4.8

%

 

 

(1.7

)%

Change in valuation allowance

 

 

(6.9

)%

 

 

3.3

%

Other

 

 

 

 

 

0.1

%

Effective rate

 

 

28.8

%

 

 

42.7

%

 

Schedule of Deferred Income Tax Assets and Liabilities

At September 30, 2019 and 2018, deferred income tax assets and liabilities were comprised of:

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

2019

 

 

September 30,

2018

 

Deferred income tax assets (liabilities):

 

 

 

 

 

 

 

 

Allowance for bad debts

 

$

352

 

 

$

229

 

Accrued expenses

 

 

223

 

 

 

22

 

Inventory

 

 

466

 

 

 

(8

)

Accrued compensation

 

 

87

 

 

 

34

 

Net operating loss

 

 

5,205

 

 

 

6,051

 

Disallowed interest carryforward

 

 

1,049

 

 

 

 

Tax credits

 

 

27

 

 

 

259

 

Stock compensation

 

 

2,232

 

 

 

2,252

 

Intangibles

 

 

(1,142

)

 

 

(1,387

)

Property & equipment

 

 

(2,906

)

 

 

(3,890

)

Other

 

 

5

 

 

 

 

Less: Valuation allowance

 

 

(729

)

 

 

(341

)

Total deferred income tax asset

 

$

4,869

 

 

$

3,221