INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2019

INCOME TAXES

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of September 30 are as follows:

	2019		2018
Deferred tax assets:
Inventory	$	102	$	101
Accrued compensation and vacation		162		68
Accrued expenses and other		379		277
Domestic net operating loss carryforwards		3,282		3,328
Basic difference for intangible assets		254		114
Stock compensation expense		2		5
AMT credit carryover		31		62
Total deferred tax assets		4,212		3,955
Deferred tax liabilities:
Prepaid expenses		(121)		(60)
Basis difference for fixed assets		(219)		(280)
Total deferred tax liabilities		(340)		(340)
Total net deferred tax assets		3,872		3,615
Valuation allowance for net deferred tax assets		(3,841)		(3,553)
Net deferred tax asset	$	31	$	62

Schedule of Components of Income Tax Expense (Benefit)

Significant components of the provision (benefit) for income taxes are as follows as of the year ended September 30:

	2019		2018
Current:
Federal	$	(31)	$	(6)
State and local		4		16
Deferred:
Federal		31		(70)
State and local		—		—
Income tax expense (benefit)	$	4	$	(60)

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate on continuing operations varied from the statutory federal income tax rate as follows:

	2019		2018
Federal statutory income tax rate	21.0	%	21.0	%
Increases (decreases):
State and local income taxes, net of Federal tax benefit, if applicable	(0.4)	%	(5.0)	%
Other nondeductible expenses	(11.5)	%	(13.6)	%
Valuation allowance changes	(9.6)	%	21.1	%
Effective income tax rate	(0.5)	%	23.5	%

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2019		2018
Balance at beginning of year	$	—	$	16
Additions for tax positions		—		10
Settlements		—		(26)
Balance at end of year	$	—	$	—