Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

Schedule of Significant Components of the Expense From Continuing Operations

The significant components of provision for income taxes from continuing operations are summarized as follows for the years ending September 30, 2023 and 2022 (in thousands):


	2023		2022
Current expense	$	3,823	$	7,351
Deferred expense	(4,464)		424
Income tax (benefit) expense	$	(641)	$	7,775

Schedule of Significant Differences Between the Income Taxes at Federal Statutory Rate and Effective Tax Rate

The following table presents the significant differences between our income taxes at the federal statutory rate and the Company's effective tax rate for continuing operations for the years ending September 30, 2023 and 2022 (in thousands):


	2023		2022
Income taxes at the federal statutory rate	$	187	$	6,523
State taxes, net	(536)		1,158
Other permanent items	(292)		94
Income tax (benefit) expense	$	(641)	$	7,775

Schedule of Deferred Tax Assets and Liabilities

An analysis of the Company's deferred tax assets and liabilities at September 30, 2023 and 2022 is as follows (in thousands):


	2023		2022
Deferred tax assets:
Net operating loss carry forwards, net	$	855	$	296
Stock based compensation	708		668
Accrued compensation	2,094		2,108
Capitalized transaction costs	973		—
Right of use asset/liability	1,669		—
Interest limitation	2,601		—
Total deferred tax assets	$	8,900	$	3,072
Less: valuation allowance	(847)		(262)
Total deferred tax assets, net	$	8,053	$	2,810
Deferred tax liabilities:
Depreciation on fixed assets	(418)		(458)
Amortization on identified intangibles and goodwill	(4,050)		(3,375)
Accrued expenses	(515)		(407)
Right of use liability	—		(104)
Total deferred tax liabilities	$	(4,983)	$	(4,344)
Net deferred tax assets (liabilities)	$	3,070	$	(1,534)