Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

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,
	2023		2022		2021
Current:
Federal	$	18,129	$	557	$	911
State	4,036		403		472
Foreign	107		7		73
	22,272		967		1,456
Deferred:
Federal	(7,458)		(154)		(1,062)
State	(1,499)		(41)		(30)
Foreign	1,110		(4,666)		97
	(7,847)		(4,861)		(995)
Total income tax provision (benefit)	$	14,425	$	(3,894)	$	461

Schedule of Income Before Income Taxes

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

	Year Ended September 30,
	2023		2022		2021
U.S.	$	56,923	$	3,175	$	3,076
Foreign	12,027		6,668		(1,984)
Income before income taxes	$	68,950	$	9,843	$	1,092

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 (benefit) in each of the three years presented in the Consolidated Statements of Operations, was as follows:

	Year Ended September 30,
	2023		2022		2021
Statutory rate	21	%	21	%	21	%
State income taxes, net of federal benefit	3		3		25
Research and development credit	(2)		(14)		(101)
Foreign rate differential	—		1		10
Foreign taxes	—		—		10
Valuation allowance	(3)		(62)		62
Deferred tax rate differential	—		(1)		(19)
Non-deductible expenses	1		9		30
Impact of U.S. global intangible taxes and benefits	1		3		—
Other	—		—		4
Effective rate	21	%	(40)	%	42	%

Schedule of Deferred Tax Assets and Liabilities

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

	September 30,
	2023		2022
Gross assets	$	20,522	$	17,941
Gross liabilities and valuation allowance	(3,458)		(8,780)
Net deferred income tax asset	$	17,064	$	9,161

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,
	2023		2022
Deferred Tax Assets:
Net operating loss	$	7,432	$	10,186
Depreciation and amortization	4,573		—
Deferred compensation	2,274		1,897
Stock-based compensation	1,555		1,083
Credit carryforwards	1,378		1,332
Uniform capitalization and inventory	1,253		1,506
Reserve for accrued employee benefits	988		872
Warranty accrual	752		559
Other(1)	317		506
Deferred tax assets	$	20,522	$	17,941
Deferred Tax Liabilities:
Depreciation and amortization	$	—	$	(3,764)
Retention and other	(1,491)		(1,229)
Deferred tax liabilities	$	(1,491)	$	(4,993)
Less: valuation allowance	(1,967)		(3,787)
Net deferred tax asset	$	17,064	$	9,161
(1) Certain prior year amounts have been reclassified for consistency with the current year presentation.

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,
	2023		2022		2021
Balance at beginning of period	$	1,377	$	1,409	$	1,252
Increases related to tax positions taken during the current period	400		240		251
Increases related to tax positions taken during a prior period	112		92		75
Decreases related to expiration of statute of limitations	—		(327)		—
Decreases related to settlement with taxing authorities	—		(37)		(169)
Balance at end of period	$	1,889	$	1,377	$	1,409