Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.3
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Reconciliation of Income Tax Expense
Income tax expense for the years ended September 30, 2025 and 2024 is as follows (in $000’s):
Year Ended
September 30,
2025
Year Ended
September 30,
2024
Current expense:
Federal $ 2,411  $ 1,696 
State 361  528 
2,772  2,224 
Deferred expense (benefit):
Federal 2,443  (5,311)
State 445  (1,571)
2,888  (6,882)
Total income tax (benefit) expense
$ 5,660  $ (4,658)
Schedule of 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, 2025 and 2024:
Year Ended
September 30,
2025
Year Ended
September 30,
2024
Federal statutory rates 21.0 % (21.0 %)
State income taxes, net of federal benefit 5.6 % (6.2 %)
Goodwill impairment
— % 8.8 %
Non-taxable income
(2.6 %) — %
Permanent differences 0.2 % 0.1  %
Investments
—  % 4.6 %
Stock compensation 0.5 % — %
Change in tax rates
(0.6 %) 3.6  %
Tax credits
(0.3 %) (0.2) %
Change in valuation allowance 0.4  % (4.4) %
Other (4.3) % (0.4 %)
Effective rate 19.9 % (15.2 %)
Schedule of Deferred Income Tax Assets and Liabilities
At September 30, 2025 and 2024, deferred income tax assets and liabilities were comprised of (in $000’s):
September 30,
2025
September 30,
2024
Deferred income tax assets (liabilities):
Allowance for bad debts $ 149  $ 192 
Accrued expenses/reserves
4  24 
Inventory 2,201  2,594 
Accrued compensation 200  197 
Research and development
496  564 
Net operating loss 2,203  2,320 
Tax credits 581  508 
Stock compensation 144  247 
Intangibles (10,394) (4,972)
Property & equipment (10,997) (12,544)
Right of use assets (14,113) (15,201)
Lease liabilities 15,381  17,192 
Interest carryforwards
7,321  4,827 
Subtotal income tax assets (liabilities)
(6,824) (4,052)
Less: Valuation allowance (2,332) (2,215)
Total deferred income tax liability
$ (9,156) $ (6,267)