Note 9 - Income Taxes	6 Months Ended
Mar. 31, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9. Income Taxes For the three and six months ended March 31, 2018, the Company recorded a benefit for income taxes of $101,000 and $304,000, respectively, reflecting an effective tax rate of 24.9% and negative 91.1%, respectively. The Tax Cut and Jobs Act of 2017 (the “Tax Reform Act”) was enacted on December 22, 2017. The Tax Reform Act reduced certain federal corporate income tax rates effective January 1, 2018 and changed certain other provisions. The effective tax rate for the six months ended March 31, 2018 is a blended rate reflecting the anticipated benefit of three quarters of federal tax rate reductions for fiscal 2018. Our six months tax benefit reflects a lower tax rate and a one -time benefit of $384,000 related to the favorable impact of a revaluation of our net deferred tax liability that decreased the income tax provision for the six months ended March 31, 2018 and reduced long-term deferred tax liabilities during the six months ended March 31, 2018. The final impact of the Tax Reform Act may differ due to and among other things, changes in interpretations, assumptions made by the Company, the issuance of additional guidance, and actions the Company may take as a result of the Tax Reform Act. Additionally, differences between the effective tax rate and the statutory tax rate are related to nondeductible meals and entertainment, expenses related to equity award compensation, favorable domestic manufacturing deduction and research and development credits. For the three and six months ended March 31, 2017, the Company recorded a provision for income taxes of $433,000 and $800,000, respectively, reflecting an effective tax rate of 32.3% and 31.0%, respectively. The primary difference between the effective tax rate and the statutory tax rate is related to nondeductible meals and entertainment, favorable domestic manufacturing deduction and research and development credits, expenses related to equity award compensation and favorable discrete items for the three and six months ended March 31, 2017 from tax benefits related to stock-based compensation awards. As of March 31, 2018 and September 30, 2017, the Company had a remaining valuation allowance of approximately $191,000 and $159,000, respectively, related to state net operating loss carry forwards the Company does not expect to utilize. As a result of recording the impact of the Tax Reform Act on its deferred assets and liabilities, the Company recorded an increase in its valuation allowance against state net operating losses carried forward of approximately $32,000 in the six months ended March 31, 2018. Based on the Company’s analysis and review of long-term forecasts and all available evidence, the Company determined that there should be no further change in the valuation allowance for the quarter ended March 31, 2018. Deferred taxes recognize the impact of temporary differences between the amounts of the assets and liabilities recorded for financial statement purposes and these amounts measured in accordance with tax laws. The Company’s realization of deferred tax temporary differences is contingent upon future taxable earnings. The Company reviewed its deferred tax assets for expected utilization using a “more likely than not” criteria by assessing the available positive and negative factors surrounding its recoverability. As of March 31, 2018, we do not have any unrecognized tax benefits. It is the Company’s practice to recognize interest and penalties accrued on any unrecognize d tax benefits as a component of income tax expense. The Company does not expect any material changes in its unrecognized tax positions over the next 12 months. We are currently under examination by the U.S. Internal Revenue Service for fiscal year 2016. We are not under examination by any other taxing jurisdiction. In the event of any future tax assessments, we have elected to record the income taxes and any related interest and penalties as income tax expense on our Statements of Operations.

Note

Income Taxes

For the

three

and

six

months ended

March 31, 2018,

the Company recorded a benefit for income taxes of

$101,000

and

$304,000,

respectively, reflecting an effective tax rate of

24.9%

and negative

91.1%,

respectively.

The Tax Cut and Jobs Act of

2017

(the “Tax Reform Act”) was enacted on

December

22,

2017.

The Tax Reform Act reduced certain federal corporate income tax rates effective

January 1, 2018

and changed certain other provisions. The effective tax rate for the

six

months ended

March 31, 2018

is a blended rate reflecting the anticipated benefit of

three

quarters of federal tax rate reductions for fiscal

2018.

Our

six

months tax benefit reflects a lower tax rate and a

one

-time benefit of

$384,000

related to the favorable impact of a revaluation of our net deferred tax liability that decreased the income tax provision for the

six

months ended

March 31, 2018

and reduced long-term deferred tax liabilities during the

six

months ended

March 31, 2018.

The final impact of the Tax Reform Act

may

differ due to and among other things, changes in interpretations, assumptions made by the Company, the issuance of additional guidance, and actions the Company

may

take as a result of the Tax Reform Act. Additionally, differences between the effective tax rate and the statutory tax rate are related to nondeductible meals and entertainment,

expenses related to equity award compensation,

favorable domestic manufacturing deduction and research and development credits.

For the

three

and

six

months ended

March 31, 2017,

the Company recorded a provision for income taxes of

$433,000

and

$800,000,

respectively, reflecting an effective tax rate of

32.3%

and

31.0%,

respectively. The primary difference between the effective tax rate and the statutory tax rate is related to nondeductible meals and entertainment, favorable domestic manufacturing deduction and research and development credits, expenses related to equity award compensation and favorable discrete items for the

three

and

six

months ended

March 31, 2017

from tax benefits related to stock-based compensation awards.

As of

March 31, 2018

and

September 30, 2017,

the Company had a remaining valuation allowance of approximately

$191,000

and

$159,000,

respectively, related to state net operating loss carry forwards the Company does

not

expect to utilize. As a result of recording the impact of the Tax Reform Act on its deferred assets and liabilities, the Company recorded an increase in its valuation allowance against state net operating losses carried forward of approximately

$32,000

in the

six

months ended

March 31, 2018.

Based on the Company’s analysis and review of long-term forecasts and all available evidence, the Company determined that there should be

further change in the valuation allowance for the quarter ended

March 31, 2018.

Deferred taxes recognize the impact of temporary differences between the amounts of the assets and liabilities recorded for financial statement purposes and these amounts measured in accordance with tax laws. The Company’s realization of deferred tax temporary differences is contingent upon future taxable earnings. The Company reviewed its deferred tax assets for expected utilization using a “more likely than

not”

criteria by assessing the available positive and negative factors surrounding its recoverability.

As of

March 31, 2018,

we do

not

have any unrecognized tax benefits. It is the Company’s practice to recognize interest and penalties accrued on any unrecognize

d tax benefits as a component of income tax expense. The Company does

not

expect any material changes in its unrecognized tax positions over the next

months.

We are currently under examination by the U.S. Internal Revenue Service for fiscal year

2016.

We are

not

under examination by any other taxing jurisdiction. In the event of any future tax assessments, we have elected to record the income taxes and any related interest and penalties as income tax expense on our Statements of Operations.