Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Reconciliation of Income Tax Expense

Income tax expense for the years ended September 30, 2020 and 2019 is as follows:

 

 

 

Year Ended

 

 

Year Ended

 

 

 

September 30,

2020

 

 

September 30,

2019

 

Current expense:

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

 

State

 

 

887

 

 

 

237

 

 

 

 

887

 

 

 

237

 

Deferred expense:

 

 

 

 

 

 

 

 

Federal

 

 

4,160

 

 

 

(1,024

)

State

 

 

(84

)

 

 

(1,226

)

Change in valuation allowance

 

 

(6

)

 

 

388

 

 

 

 

4,070

 

 

 

(1,862

)

Total income tax expense

 

$

4,957

 

 

$

(1,625

)

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, 2020 and 2019:

 

 

 

Year Ended

 

 

Year Ended

 

 

 

September 30,

2020

 

 

September 30,

2019

 

Federal statutory rates

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal benefit

 

 

3.1

%

 

 

11.3

%

Permanent differences

 

 

1.5

%

 

 

-0.9

%

Bargain gain - purchase accounting

 

 

(2.0

)%

 

 

 

Property & equipment adjustment

 

 

7.4

%

 

 

(0.5

)%

Federal carryforward attributes trued up

 

 

 

 

 

4.8

%

Change in valuation allowance

 

 

 

 

 

-6.9

%

Other

 

 

0.7

%

 

 

 

Effective rate

 

 

31.7

%

 

 

28.8

%

 

Schedule of Deferred Income Tax Assets and Liabilities

At September 30, 2020 and 2019, deferred income tax assets and liabilities were comprised of:

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

2020

 

 

September 30,

2019

 

Deferred income tax assets (liabilities):

 

 

 

 

 

 

 

 

Allowance for bad debts

 

$

247

 

 

$

352

 

Accrued expenses

 

 

 

 

 

223

 

Inventory

 

 

1,201

 

 

 

466

 

Accrued compensation

 

 

120

 

 

 

87

 

Net operating loss

 

 

2,429

 

 

 

5,205

 

Disallowed interest carryforward

 

 

 

 

 

1,049

 

Tax credits

 

 

489

 

 

 

27

 

Stock compensation

 

 

2,290

 

 

 

2,232

 

Intangibles

 

 

(1,753

)

 

 

(1,142

)

Property & equipment

 

 

(5,476

)

 

 

(2,906

)

Right of use assets

 

 

(8,341

)

 

 

 

Lease liabilities

 

 

9,525

 

 

 

 

Payroll protection program loans

 

 

1,335

 

 

 

 

Other

 

 

51

 

 

 

5

 

Less: Valuation allowance

 

 

(1,096

)

 

 

(729

)

Total deferred income tax asset

 

$

1,021

 

 

$

4,869