Annual report pursuant to Section 13 and 15(d)

Income Tax (Tables)

Income Tax (Tables)

12 Months Ended

Sep. 30, 2018

Provision for income taxe

The components of the provision for income taxes is as follows:
		Year Ended September 30,
		2018				2017
Current benefit:
Federal		$	-				-
State			(15	)			126
Total current benefit:		$	(15	)			126

Deferred benefit:
Federal		$	(898	)			(5,549	)
State			54				(595	)
Total deferred benefit:		$	(844	)			(6,144	)

Total income tax benefit:		$	(859	)			(6,018	)

Reconciliation of income tax rate

A reconciliation of the Company’s statutory income tax rate to the Company’s effective income tax rate is as follows:

		Year Ended September 30,
		2018				2017
Income at US Statutory Rate		$	(2,064	)		$	(2,853	)
State Taxes, net of Federal benefit			(76	)			(633	)
Tax Credits			(176	)			(99	)
Acquisition Related Costs			(108	)			476
Statutory Rate Changes			41				(571	)
Valuation Allowance			1,167				(2,370	)
Other			357				32
		$	(859	)		$	(6,018	)

Net deferred income tax

The net deferred income tax asset balance related to the following:
		Year Ended September 30,
		2018				2017

Net Operating Losses		$	6,710			$	8,177
Stock Options			969				881
Allowance for Doubtful Accounts			140				958
Accrued & Prepaid Expenses			469				911
Tax Credit Carryforwards			404				171
Other			4				-
Total Deferred tax assets		$	8,696			$	11,098
Intangibles		$	(6,006	)		$	(10,308	)
Depreciation			(31	)			(110	)
Total deferred tax liability		$	(6,037	)		$	(10,418	)
Deferred tax asset		$	2,659			$	680
Valuation allowance			(2,805	)			(1,638	)
Net deferred tax liability		$	(146	)		$	(958	)