INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2016

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

	2016		2015
Deferred tax assets:
Inventory	$	209	$	191
Accrued compensation and vacation		90		120
Accrued expenses and other		427		457
Domestic net operating loss carryforwards		5,365		4,449
Stock compensation expense		19		20
AMT credit carryover		55		75
Total deferred tax assets		6,165		5,312

Deferred tax liabilities:
Prepaid expenses		(64)		(91)
Unrealized gain/loss - warrant liability		—		(376)
Basis difference for fixed assets		(412)		(352)
Total deferred tax liabilities		(476)		(819)

Total net deferred tax assets		5,689		4,493

Valuation allowance for net deferred tax assets		(5,689)		(4,493)

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:

	2016			2015
Federal statutory income tax rate		34.0	%		34.0	%
Increases (decreases):
State and local income taxes, net of Federal tax benefit, if applicable		(0.1)	%		0.0	%
Nondeductible goodwill impairment		(10.2)	%		0.0	%
Other nondeductible expenses		(0.8)	%		3.1	%
Valuation allowance changes		(22.5)	%		(35.7)	%
Effective income tax rate		0.4	%		1.4	%

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

	2016		2015
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