Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Provision (Benefit)

The components of the income tax provision were as follows (in thousands): 

	Year Ended September 30,
	2021		2020		2019
Current:
Federal	$	911	$	945	$	1,350
State	472		1,186		186
Foreign	73		66		88
	1,456		2,197		1,624
Deferred:
Federal	(1,062)		1,045		366
State	(30)		(91)		457
Foreign	97		519		(3)
	(995)		1,473		820
Total income tax provision	$	461	$	3,670	$	2,444

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes was as follows (in thousands): 

	Year Ended September 30,
	2021		2020		2019
U.S.	$	3,076	$	21,243	$	11,859
Foreign	(1,984)		(913)		475
Income before income taxes	$	1,092	$	20,330	$	12,334

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. income tax rate and the effective income tax rate, as computed on earnings before income tax provision in each of the three years presented in the Consolidated Statements of Operations, was as follows:

	Year Ended September 30,
	2021		2020		2019
Statutory rate	21	%	21	%	21	%
State income taxes, net of federal benefit	25		5		4
Research and development credit	(101)		(13)		(7)
Foreign rate differential	10		—		1
Foreign taxes	10		—		1
Valuation allowance	62		4		(2)
Deferred tax rate differential	(19)		—		—
Non-deductible expenses(1)	30		1		2
Other	4		—		—
Effective rate	42	%	18	%	20	%
(1) Certain prior year amounts have been reclassified for consistency with the current year presentation.

Schedule of Deferred Tax Assets and Liabilities

The net deferred income tax asset was comprised of the following (in thousands): 

	September 30,
	2021		2020
Gross assets	$	20,427	$	18,326
Gross liabilities and valuation allowance	(15,788)		(14,682)
Net deferred income tax asset	$	4,639	$	3,644

The tax effect of temporary differences between U.S. GAAP accounting and federal income tax accounting creating deferred income tax assets and liabilities was as follows (in thousands):

	September 30,
	2021		2020
Deferred Tax Assets:
Net operating loss	$	12,682	$	10,823
Credit carryforwards	1,598		1,490
Deferred compensation	2,095		1,681
Uniform capitalization and inventory	1,222		1,067
Stock-based compensation	921		1,079
Reserve for accrued employee benefits	718		929
Warranty accrual	579		655
Accrued legal	130		112
Postretirement benefits liability	156		111
Other	326		379
Deferred tax assets	$	20,427	$	18,326
Deferred Tax Liabilities:
Depreciation and amortization	$	(4,404)	$	(5,035)
Retention and other	(886)		(620)
Deferred tax liabilities	$	(5,290)	$	(5,655)
Less: valuation allowance	(10,498)		(9,027)
Net deferred tax asset	$	4,639	$	3,644

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the unrecognized tax benefits follows (in thousands):

	Year Ended September 30,
	2021		2020		2019
Balance at beginning of period	$	1,252	$	2,703	$	1,854
Increases related to tax positions taken during the current period	251		220		240
Increases related to tax positions taken during a prior period	75		97		609
Decreases related to expiration of statute of limitations	—		(545)		—
Decreases related to settlement with taxing authorities	(169)		(1,223)		—
Balance at end of period	$	1,409	$	1,252	$	2,703