Income Taxes (Tables)

12 Months Ended

Sep. 30, 2024

The components of the provision for income taxes is as follows:
	Year Ended September 30,
	2024			2023
Current expense (benefit):
Federal	$	-		$	-
State		(124	)		343
Total current expense (benefit):	$	(124	)	$	343

Deferred expense (benefit):
Federal	$	(3,038	)	$	347
State		(313	)		(358	)
Total deferred expense (benefit):	$	(3,351	)	$	(11	)

Change in valuation allowance:
Federal	$	-		$	(6,615	)
State		920			(966	)
Total change in valuation allowance:	$	2,087		$	(7,581	)

Provision for income tax expense (benefit)	$	(2,555	)	$	(7,249	)

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,
	2024			2023
Income at US statutory rate	$	(5,598	)	$	455
State taxes, net of federal benefit		(411	)		(1,053	)
Tax credits		(67	)		(111	)
Stock compensation		24			37
Goodwill impairment		2,377			-
Valuation allowance		920			(6,615	)
Other		200			38
	$	(2,555	)	$	(7,249	)

The net deferred income tax asset balance related to the following:

	September 30, 2024			September 30, 2023
Net operating loss carryforwards	$	5,950		$	4,368
Stock options		1,770			1,795
Allowance for credit losses		165			174
Accrued and prepaid expenses		446			417
Tax credit carryforwards		1,212			1,145
Right-of-use liabilities		781			916
Interest		3,088			3,338
Depreciation		23
Other		6			7
Total deferred tax assets	$	13,441		$	12,160

Intangible assets	$	(2,312	)	$	(4,262	)
Right-of-use assets		(714	)		(827	)
Depreciation		-			(7	)
Total deferred tax liabilities	$	(3,026	)	$	(5,096	)

Deferred tax assets	$	10,415		$	7,064
Valuation allowance		(920	)		-
Deferred tax assets, net	$	9,495		$	7,064