Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense

The provision for income tax expense consists of:

	Year Ended September 30,
	2020			2019
Current:
Federal	$	3,430,000		$	2,297,000
State		346,000			148,000
Total current		3,776,000			2,445,000
Deferred:
Federal		(2,436,000	)		52,000
State		(190,000	)		131,000
Total deferred		(2,626,000	)		183,000
Income tax expense	$	1,150,000		$	2,628,000

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:

	Year Ended September 30,
	2020			2019
Federal income taxes computed at the statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		1.3	%		1.6	%
Research & development tax refunds & credits		(6.3	%)		(1.9	%)
Dividend received deduction		(1.2	%)		(0.6	%)
263A Section 481(a) adjustment		1.5	%		—
Other, net		0.9	%		0.4	%
Effective income tax rate		17.2	%		20.5	%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following:

	September 30,
	2020			2019
Deferred Tax Assets:
Accrued liabilities and reserves	$	340,000		$	344,000
Allowance for doubtful accounts		98,000			104,000
Inventory		369,000			98,000
Stock-based compensation		81,000			82,000
Net operating losses carryforwards		5,000			7,000
Gross Deferred Income Tax Assets		893,000			635,000
Deferred and Other Tax Liabilities:
Domestic international sales corporation		(329,000	)		(464,000	)
Percentage of completion		—			(2,048,000	)
Property and equipment		(1,158,000	)		(1,080,000	)
Unrealized gain on investments		(2,000	)		(265,000	)
Unrecognized tax benefits		(150,000	)		(150,000	)
Gross Deferred and Other Income Tax Liabilities		(1,639,000	)		(4,007,000	)
Net Deferred and Other Income Tax Assets (Liabilities)	$	(746,000	)	$	(3,372,000	)