Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense (Benefit)

The provision for income tax expense (benefit) consists of:

	Years Ended September 30,
	2017		2016			2015
Current:
Federal	$	2,381,000	$	679,000		$	261,000
State		50,000		31,000			37,000
Total current		2,431,000		710,000			298,000
Deferred:
Federal		1,238,000		1,768,000			(1,871,000	)
State		91,000		(121,000	)		(154,000	)
Total deferred		1,329,000		1,647,000			(2,025,000	)
Income tax expense (benefit)	$	3,760,000	$	2,357,000		$	(1,727,000	)

Reconciliation of the Federal Statutory Tax Rate to the Total Tax Provision

A reconciliation of the federal statutory tax rate to the total tax provision is as follows:

	Years Ended September 30,
	2017			2016			2015
Federal income taxes computed at the statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal benefit		1.2	%		1.5	%		3.3	%
Research & development tax refunds & credits		(2.1	%)		(2.8	%)		5.2	%
Dividend received deduction		(0.9	%)		(2.2	%)		—
Domestic production activities deduction		(2.8	%)		(1.9	%)		—
Domestic international sales corporation benefits		—			—			5.8	%
Other, net		1.5	%		(3.5	%)		0.4	%
Effective income tax rate		30.9	%		25.1	%		48.7	%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following:

	September 30,
	2017			2016
Deferred Tax Assets:
Accrued liabilities and reserves	$	351,000		$	331,000
Allowance for doubtful accounts		73,000			70,000
Inventory		778,000			632,000
R&D tax credits carryforwards		155,000			871,000
Stock-based compensation		95,000			140,000
Net operating losses carryforwards		58,000			73,000
Unrealized loss on investments		—			85,000
Other		48,000			62,000
Gross Deferred Tax Assets		1,558,000			2,264,000
Deferred and Other Tax Liabilities:
Domestic international sales corporation		(839,000	)		(577,000	)
Percentage of completion		(1,114,000	)		(1,158,000	)
Property and equipment		(694,000	)		(683,000	)
Unrealized gain on investments		(332,000	)		—
Unrecognized tax benefits		(150,000	)		(150,000	)
Other		(30,000	)		(12,000	)
Gross Deferred and Other Tax Liabilities		(3,159,000	)		(2,580,000	)
Net Deferred and Other Income Tax Assets (Liabilities)	$	(1,601,000	)	$	(316,000	)