Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense (Benefit)

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

	Year Ended September 30,
	2022			2021
Current:
Federal	$	1,680,000		$	992,000
State		317,000			189,000
Total current		1,997,000			1,181,000
Deferred:
Federal		(2,701,000	)		(269,000	)
State		(617,000	)		(83,000	)
Total deferred		(3,318,000	)		(352,000	)
Income tax expense (benefit)	$	(1,321,000	)	$	829,000

Reconciliation of the Federal Statutory Tax Rate to the Total Tax Provision (Benefit)

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

	Year Ended September 30,
	2022			2021
Federal income taxes computed at the statutory rate		(21.0	%)		21.0	%
State income taxes, net of federal benefit		(11.8	%)		1.6	%
Research & development tax refunds & credits		(28.8	%)		(5.1	%)
Dividend received deduction		(6.4	%)		(1.9	%)
Other, net		(10.0	%)		(3.1	%)
Effective income tax rate		(78.0	%)		12.5	%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following:

	September 30,
	2022			2021
Deferred Tax Assets:
Accrued liabilities and reserves	$	155,000		$	276,000
Allowance for doubtful accounts		83,000			72,000
Inventory		3,197,000			1,783,000
Stock-based compensation		—			79,000
Unrealized loss on investments		1,272,000			—
Net operating losses carryforwards		352,000			20,000
Gross Deferred Income Tax Assets		5,059,000			2,230,000
Deferred and Other Tax Liabilities:
Domestic international sales corporation		(136,000	)		(236,000	)
Property and equipment		(1,868,000	)		(1,943,000	)
Unrealized gain on investments		—			(295,000	)
Unrecognized tax benefits		(131,000	)		(150,000	)
Gross Deferred and Other Income Tax Liabilities		(2,135,000	)		(2,624,000	)
Net Deferred and Other Income Tax Assets (Liabilities)	$	2,924,000		$	(394,000	)