Income and other Taxes (Tables)

12 Months Ended

Sep. 30, 2017

(Loss) Income from Continuing Operations before Income Taxes

The Company's income (loss) from continuing operations before income taxes consisted of the following:



Income (loss) from continuing operations before income taxes	For the Fiscal Years Ended September 30,
(in thousands)	2017			2016		2015
Domestic	$	10,632		$	1,735	$	(5,713	)
Foreign	(2,248		)	898		1,250
Income (loss) from continuing operations before income taxes	$	8,384		$	2,633	$	(4,463	)

Schedule of Components of Income Tax Expense (Benefit)

The Company's income tax expense (benefit) consisted of the following:



Income tax expense (benefit)	For the Fiscal Years Ended September 30,
(in thousands)	2017		2016			2015
Federal:
Current	$	135	$	—		$	—
Deferred	—		—			(1,835		)
	135		—			(1,835		)
State:
Current	28		(117		)	—
Deferred	—		—			(356		)
	28		(117		)	(356		)
Foreign:
Current	—		131			—
Deferred	—		—			—
	—		131			—
Total income tax expense (benefit)	$	163	$	14		$	(2,191	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes, with the amount computed by applying the statutory U.S. federal and state income tax rates to continuing operations income before provision for income taxes is as follows:



Provision for Income Taxes	For the Fiscal Years Ended September 30,
(in thousands)	2017			2016			2015
Income tax benefit computed at U.S. federal statutory rate	$	2,841		$	896		$	(1,518	)
State tax expense benefit, net of U.S. federal effect	414			(41		)	(356		)
Foreign tax rate differential	229			(94		)	(269		)
Effect due to change in tax rate	2,528			626			—
Windfall from stock based compensation	(150		)	—			—
Other	126			(57		)	108
State net operating loss carryforward adjustment	933			685			—
Change in valuation allowance	(6,758		)	(2,001		)	(156		)
Income tax expense (benefit)	$	163		$	14		$	(2,191	)
Effective tax rate	1.9		%	0.5		%	49.1		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets are as follows:



Deferred Tax Assets	As of September 30, 2017			As of September 30, 2016
(in thousands)	As of September 30, 2017			As of September 30, 2016
Deferred tax assets:
Federal net operating loss carryforwards	$	144,455		$	147,449
Foreign net operating loss carryforwards	587			51
Income tax credit carryforwards	3,211			3,062
Inventory reserves	2,037			2,614
Accounts receivable reserves	8			14
Accrued warranty reserve	249			328
State net operating loss carryforwards	4,525			7,009
Stock compensation	2,367			3,334
Deferred compensation	349			896
Fixed assets and intangibles	136			124
Other	927			728
Total deferred tax assets	158,851			165,609
Valuation allowance	(158,851		)	(165,609		)
Net deferred tax assets	$	—		$	—

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized gross tax benefits is as follows:



Unrecognized Gross Tax Benefit (in thousands)
Balance as of September 30, 2015	$	413
Adjustments based on tax positions related to the current year	—
Adjustments based on tax positions of prior years	(125		)
Balance as of September 30, 2016	288
Adjustments based on tax positions related to the current year	131
Adjustments based on tax positions of prior years	—
Balance as of September 30, 2017	$	419