INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2015

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

	2015		2014
Deferred tax assets - Current:
Inventory	$	191	$	187
Accrued compensation and vacation		120		246
Accrued expenses and other		457		178
Total current deferred tax assets		768		611

Deferred tax liabilities - Current:
Prepaid expenses		(91)		(72)
Total net current deferred tax assets		677		539

Deferred tax assets - Noncurrent:
Domestic net operating loss carryforwards		4,449		4,828
Stock compensation expense		20		54
AMT credit carryover		75		58
Total noncurrent deferred tax assets		4,544		4,940

Deferred tax liabilities - Noncurrent
Unrealized gain/loss - warrant liability		(376)		(180)
Investment in subsidiary		-		(3,173)
Basis difference for fixed assets		(352)		(408)
Total noncurrent deferred tax liabilities		(728)		(3,761)

Total net noncurrent deferred tax assets		3,816		1,179

Valuation allowance for net deferred tax assets		(4,493)		(1,718)

Net deferred tax asset (liability)	$	-	$	-

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

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

	2015			2014
Federal statutory income tax rate		34.0	%		34.0	%
Increases (decreases):
State and local income taxes, net of Federal tax benefit, if applicable		0.0	%		-0.1	%
Nondeductible expenses		3.1	%		-15.2	%
Valuation allowance changes		-35.7	%		-19.3	%
Effective income tax rate		1.4	%		-0.6	%

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

	2015		2014
Balance at beginning of year	$	16	$	16
Additions based on tax positions related to the current year				-
Additions for tax positions or prior years		-		-
Reductions for tax positions of prior years				-
Settlements		-		-
Balance at end of year	$	16	$	16