Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Taxes

Schedule of Income (loss) before the provision (benefit)

Income (loss) before the provision (benefit) for income taxes consists of the following:

	2019		2018
Domestic	$	(513,000)	$	(67,000)
Foreign		303,000		49,000
Total	$	(210,000)	$	(18,000)

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes in the accompanying consolidated financial statements consists of the following:

	2019		2018
Current
Federal	$	(74,000)	$	124,000
State		14,000		15,000
Foreign		(40,000)		(32,000)
Total current	$	(100,000)	$	107,000
Deferred
Federal	$	169,000	$	(183,000)
State		120,000		(1,508,000)
Foreign		(7,000)		(24,000)
Total deferred		282,000		(1,715,000)
Total provision (benefit)	$	182,000	$	(1,608,000)

Schedule of reconciliation of the federal statutory rate

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

	2019		2018
Federal statutory rate	21.00	%	24.28	%
State rate, net of federal benefit	(36.16)	%	(9.29)	%
Permanent differences	(45.18)		**
Change in valuation allowance	(66.33)		**
Foreign rate differential and other	27.80		**
Federal impact under TCJA	34.29		**
Tax credits genereated in foreign jurisdictions	60.23		**
Non-deductible related de-registration costs	(82.62)		**
Effective tax rate	(86.97)	%	8703.64	%

**These values are not meaningful. Please see the subsequent paragraphs of this note for more detailed explanations.

Schedule of Net deferred tax assets (liabilities)

Net deferred tax assets (liabilities) consisted of the following at September 30, 2019:

Deferred tax assets	Domestic		Foreign		Worldwide
Credits	$	3,501,000	$	—	$	3,501,000
NOLs		2,974,000		24,000		2,998,000
Stock compensation		202,000		—		202,000
Accruals		310,000		—		310,000
Other		126,000		—		126,000
Gross deferred tax assets		7,113,000		24,000		7,137,000
Valuation allowance		(1,916,000)		—		(1,916,000)
Net deferred tax assets		5,197,000		24,000		5,221,000
Deferred tax liabilities
Depreciation		(1,194,000)		(157,000)		(1,351,000)
Intangibles		41,000		(52,000)		(11,000)
Other		—		—		—
Gross deferred tax liabilities		(1,153,000)		(209,000)		(1,362,000)
Net deferred tax asset (liability)	$	4,044,000	$	(185,000)	$	3,859,000

Net deferred tax assets (liabilities) consisted of the following at September 30, 2018:

Deferred tax assets	Domestic		Foreign		Worldwide
Credits	$	3,530,000	$	—	$	3,530,000
NOLs		3,235,000		25,000		3,260,000
Stock compensation		203,000		—		203,000
Accruals		209,000		—		209,000
Other		109,000		—		109,000
Gross deferred tax assets		7,286,000		25,000		7,311,000
Valuation allowance		(1,777,000)		—		(1,777,000)
Net deferred tax assets		5,509,000		25,000		5,534,000
Deferred tax liabilities
Depreciation		(1,168,000)		(164,000)		(1,332,000)
Intangibles		(7,000)		(66,000)		(73,000)
Gross deferred tax liabilities		(1,175,000)		(230,000)		(1,405,000)
Net deferred tax asset (liability)	$	4,334,000	$	(205,000)	$	4,129,000