XML 34 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes Income Taxes (Tables)
12 Months Ended
Sep. 30, 2017
Income Taxes [Abstract]  
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
Unrecognized tax benefits activity for the years ended September 30, 2017 and 2016 is summarized below:
 
 
2017
 
2016
Beginning balance
$
45,000

 
$
45,000

Additions (reductions) based on tax
  positions related to prior years
 
 
 

 

Additions (reductions) based on tax
  positions related to the current year
 
 
 

 

Ending balance
$
45,000

 
$
45,000

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
A reconciliation of the U.S. statutory tax rate to the Company’s effective tax rate follows:                                                              
 
 
2017
 
2016
 
 
Amount
 
Percent
 
Amount
 
Percent
U.S. statutory tax
 
$
(2,384,000
)
 
(34.0
)%
 
$
(4,343,000
)
 
(34.0
)%
Increase in valuation allowance
 
2,280,000

 
32.5

 
2,318,000

 
18.1

Goodwill writedown
 

 

 
2,046,000

 
16.0

Foreign tax rate differences
 
238,000

 
3.4

 

 

Permanent differences
 
18,000

 
0.3

 
45,000

 
0.4

State tax, net of federal benefit
 
(126,000
)
 
(1.8
)
 
(119,000
)
 
(0.9
)
Other, net
 
(26,000
)
 
(0.4
)
 
53,000

 
0.4

Effective tax rate
 
$

 
 %
 
$

 
 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
The tax effects of temporary differences that give rise to deferred tax assets and liabilities at September 30, 2017 and 2016 are presented below:
 
 
2017
 
2016
Deferred tax assets:
 
 
 
 
Inventories
 
$
1,543,000

 
$
1,558,000

Accrued compensation
 
539,000

 
528,000

Warranty accrual
 
150,000

 
244,000

Depreciation
 
100,000

 
98,000

Allowance for doubtful accounts receivable
 
320,000

 
337,000

Unearned revenue
 
237,000

 
205,000

U.S. net operating loss carryforwards
 
8,794,000

 
7,223,000

Foreign net operating loss carryforwards
 
1,916,000

 
1,575,000

Tax credits
 
989,000

 
989,000

Other
 
1,181,000

 
724,000

Gross deferred tax assets
 
15,769,000

 
13,481,000

Deferred tax liabilities:
 
 
 
 
Other
 
64,000

 
56,000

Gross deferred tax liabilities
 
64,000

 
56,000

Total deferred tax assets and liabilities
 
15,705,000

 
13,425,000

Less valuation allowance
 
(15,705,000
)
 
(13,425,000
)
Net deferred tax assets and liabilities
 
$

 
$