INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2023

Schedule of Income Tax Benefit (Provision)

Income before income taxes for the twelve months ended September 30, 2023, 2022, and 2021 is comprised of the following (amounts in thousands):


	2023		2022		2021
Domestic	$	23,836	$	11,483	$	10,966
Foreign	(13,495)		(7,881)		(2,164)
Total	$	10,341	$	3,602	$	8,802

For the twelve months ended September 30, 2023, 2022, and 2021 the income tax benefit (provision) was as follows (amounts in thousands):


	2023		2022		2021
Current:
Federal	$	(4,414)	$	(233)	$	—
State	(1,215)		(325)		(78)
Foreign	(1,023)		(1,800)		(1,119)
Total current provision for income taxes	(6,652)		(2,358)		(1,197)
Deferred:
Federal	(659)		(1,400)		(1,387)
State	819		513		457
Foreign	4,178		3,337		1,303
Total deferred provision for income taxes	4,338		2,450		373
Total tax benefit (expense)	$	(2,314)	$	92	$	(824)

Schedule of Significant Components of Net Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2023 and 2022 are as follows (amounts in thousands):


	2023		2022
Deferred tax assets:
Stock-based compensation	$	2,357	$	1,793
Net operating loss carryforwards	11,548		6,656
Research credit carryforwards	4,336		7,747
Lease liability	1,185		859
Intangibles	4,606		—
Other, net	852		1,117
Total deferred assets	24,884		18,172
Deferred tax liabilities:

Right of use asset	(1,032)		(633)
Intangibles	(15,914)		(14,139)

Total deferred liabilities	(16,946)		(14,772)
Valuation allowance for net deferred tax assets	(2,769)		(2,868)
Net deferred tax asset	$	5,169	$	532

Schedule of Income Taxes Computed Using Federal Income Tax Rate

The difference between the income tax benefit (provision) and income taxes computed using the U.S. federal income tax rate was as follows for the twelve months ended September 30, 2023, 2022, and 2021 (amounts shown in thousands):


	2023		2022		2021
Amount computed using statutory rate	$	(2,172)	$	(756)	$	(1,849)
Net change in valuation allowance for net deferred tax assets	292		(1,702)		(19)
Other	(477)		1,605		—
Foreign rate differential	504		268		13
Non-deductible items	(14)		(64)		(141)
Transaction costs	—		(411)		—
State income tax	(100)		251		(276)


Research and development credits	791		1,166		1,248
Foreign income tax	—		—		(15)

Contingent consideration	(432)		285		—
Uncertain tax positions	(184)		(318)		—
Stock compensation, net	(522)		(232)		215
Income tax (provision) benefit	$	(2,314)	$	92	$	(824)

Schedule of Reconciliation of Unrecognized Tax Benefits

The following table reconciles the beginning and ending amount of unrecognized tax benefits for the twelve months ended September 30, 2023, 2022, and 2021 (amounts shown in thousands):


	2023		2022		2021
Gross unrecognized tax benefits at the beginning of the year	$	2,664	$	2,114	$	1,810
Additions from tax positions taken in the current year	330		484		268
Additions from tax positions taken in prior years	—		66		36
Reductions from tax positions taken in prior years	(9)		—		—

Gross unrecognized tax benefits at end of the year	$	2,985	$	2,664	$	2,114