Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Summary of Income Tax Benefit (Expense)

During the years ended September 30, 2020, 2019, and 2018, the Company recorded income tax benefit (expense) as follows:

	Years Ended September 30,
	2020			2019			2018
	(in thousands)
Current income tax benefit (expense):
Federal	$	8,491		$	(1,841	)	$	(16,449	)
State		941			(372	)		(2,858	)
Deferred income tax benefit (expense):
Federal		(8,916	)		2,431			(2,245	)
State		(1,665	)		608			387
Income tax (expense) benefit	$	(1,149	)	$	826		$	(21,165	)

Reconciliation of Income Tax Provision at Federal Statutory Income Tax Rate and Effective Tax Rate

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

	Years Ended September 30,
	2020			2019			2018
Federal statutory income tax rate	(21%)				21.0	%		24.5	%
State taxes, net of federal benefit		(2.8	)		1.8			2.6
Change in valuation allowance		52.1			—			—
Federal research and development tax credit		(13.3	)		(12.8	)		(5.2	)
Share-based compensation		2.8			(6.7	)		(2.8	)
Change in deferred tax rate		(10.2	)		—			—
Foreign-derived intangible income		—			(3.2	)		—
Remeasurement of net deferred tax assets		—			—			4.2
Other		(4.3	)		(1.9	)		(0.6	)
Effective income tax rate		3.3	%		(1.8	%)		22.7	%

The negative federal statutory income tax rate during the year ended September 30, 2020 reflects an income tax benefit due to the Company’s ability to carryback the pre-tax loss for the year under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”).

Changes in the valuation allowance for deferred tax assets during the years ended September 30, 2020, 2019 and 2018 are as follows:

Changes in the Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets during the years ended September 30, 2020, 2019 and 2018 are as follows:

	Years Ended September 30,
	2020			2019		2018
	(in thousands)
Valuation allowance, beginning of year	$	—		$	—	$	—
Increase recorded to income tax (expense)		(18,259	)		—		—
Valuation allowance, end of year	$	(18,259	)	$	—	$	—

Net Deferred Tax Assets and Liabilities

Net deferred tax assets as of September 30, 2020 and 2019 consisted of the following:

	September 30,
	2020			2019
	(in thousands)
Deferred tax assets:
Share-based compensation	$	11,071		$	9,901
Tax credit carryforwards		6,574			763
Operating lease liability		2,468			—
Accrued compensation		1,598			821
Net operating loss carryforward		861			—
Accrued expenses		245			150
Other temporary differences		444			915
Total deferred tax assets		23,261			12,550
Valuation allowance		(18,259	)		—
Net deferred tax assets		5,002			12,550
Deferred tax liabilities:
Right of use asset		(2,221	)		—
Depreciation		(1,650	)		(1,027	)
Prepaid expenses		(364	)		(148	)
Unrealized gain		(422	)		(34	)
Total deferred tax liabilities		(4,657	)		(1,209	)
Net deferred income tax assets (liabilities)	$	345		$	11,341

Schedule of Reconciliation of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions is summarized as follows:

	September 30,
	2020			2019
	(in thousands)
Beginning Balance	$	1,650		$	1,679
Additions based on tax positions for the current period		11			156
Reductions for tax positions due to lapse of statute of limitations		(719	)		(87	)
Reductions for tax positions of prior periods		(98	)		(98	)
Ending Balance	$	844		$	1,650