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INCOME TAXES
12 Months Ended
Sep. 30, 2023
INCOME TAXES [Abstract]  
INCOME TAXES
12.
INCOME TAXES

The reconciliation of income tax computed at the Federal statutory rate to the provision for income taxes from operations is as follows (in thousands):
 
   
Year Ended September 30,
 
   
2023
   
2022
 
Federal taxes at statutory rates
 
$
110
   
$
11
 
Permanent differences
   
250
     
1,477
 
State and local taxes, net of Federal benefit
   
(273
)
   
702
 
Other
   
(285
)
   
 

 
$
(198
)
 
$
2,190
 

 The provisions of income taxes are summarized as follows (in thousands):
 
   
Year Ended September 30,
 
   
2023
   
2022
 
Current
 
$
1,048
   
$
1,948
 
Deferred
   
(1,246
)
   
242
 

 
$
(198
)
 
$
2,190
 

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands):
 
   
2023
   
2022
 
Deferred tax assets - net state operating loss carryforwards
 
$
52
   
$
 
Lease liability
   
1,814
     
1,755
 
Other
   
768
     
690
Stock based compensation
   
374
     
406
 
Total deferred tax assets
   
3,008
     
2,851
 
Valuation allowance
   
     
 
Total deferred tax assets net of valuation allowance
   
3,008
     
2,851
 
Deferred tax liabilities - depreciation and amortization
   
2,564
     
3,648
 
Prepaid expenses
   
30
     
38
 
Right of use assets
   
1,755
     
1,706
 
Total deferred tax liabilities
   
4,349
     
5,392
 
Net deferred tax liability
 
$
(1,341
)
 
$
(2,541
)
 
The Company has no Federal net operating loss carryforwards for income tax purposes as of September 30, 2023.
 
The Company will recognize interest and penalties related to uncertain tax positions as a component of income tax expense.
 
As of September 30, 2023, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s statement of operations. Income tax returns for tax years from 2019 through 2022 remain subject to examination by the taxing jurisdictions.

On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States. Among other provisions, the IRA includes a 15% corporate minimum tax rate applied to certain large corporations and a 1% excise tax on corporate stock repurchases made after December 31, 2022.