INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2021

INCOME TAXES

Schedule of deferred tax assets and liabilities

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

	As of September 30,
	2021		2020
Deferred tax assets:
Inventory	$	117	$	85
Accrued compensation and vacation		224		137
Accrued expenses and other		—		172
Domestic net operating loss carryforwards		5,277		3,580
Basis difference for intangible assets		—		457
Goodwill		138		—
Stock compensation expense		501		96
Business Interest Limitation		226		—
Leases		94		108
PPP loan expenses		—		1,276
Total deferred tax assets		6,577		5,911
Deferred tax liabilities:
Prepaid expenses		(126)		(143)
Accrued expenses and other		(926)		—
Basis difference for fixed assets		(2,077)		(211)
Basis difference for intangible assets		(2,841)		—
Goodwill		—		(141)
Total deferred tax liabilities		(5,970)		(495)
Total net deferred tax assets		607		5,416
Valuation allowance for net deferred tax assets		(951)		(5,557)
Net deferred tax liability	$	(344)	$	(141)

Schedule of components of the provision (benefit) for income taxes

Significant components of the provision (benefit) for income taxes are as follows as of the years ended September 30, 2021 and 2020:

	2021		2020
Current:
Federal	$	—	$	(31)
State and local		7		6
Deferred:
Federal		(3,902)		143
State and local		(881)		29
Income tax (income) expense	$	(4,776)	$	147

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:

	2021		2020
Federal statutory income tax rate	21.0	%	21.0	%
Increases (decreases):
State and local income taxes, net of Federal tax benefit, if applicable	0.1	%	(0.1)	%
Other nondeductible expenses	(24.3)	%	1.3	%
Goodwill	3.3	%	(3.1)
Valuation allowance changes from activity	3.3	%	(22.3)	%
Valuation allowance changes from acquisitions	(81.4)		—
Effective income tax rate	(78.0)	%	(3.2)	%