Income and Other Taxes (Tables)

12 Months Ended

Sep. 30, 2018

(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)	2018			2017			2016
Domestic	$	(16,752	)	$	10,632		$	1,735
Foreign	(1,150		)	(2,248		)	898
Income (loss) from continuing operations before income taxes	$	(17,902	)	$	8,384		$	2,633

Schedule of Components of Income Tax Expense (Benefit)

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



Income tax (benefit) expense	For the Fiscal Years Ended September 30,
(in thousands)	2018			2017		2016
Federal:
Current	$	(502	)	$	135	$	—
Deferred	—			—		—
	(502		)	135		—
State:
Current	53			28		(117		)
Deferred	—			—		—
	53			28		(117		)
Foreign:
Current	—			—		131
Deferred	—			—		—
	—			—		131
Total income tax (benefit) expense	$	(449	)	$	163	$	14

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)	2018			2017			2016
Income tax benefit computed at U.S. federal statutory rate	$	(4,346	)	$	2,841		$	896
State tax expense benefit, net of U.S. federal effect	(168		)	414			(41		)
Foreign tax rate differential	36			229			(94		)
Effect due to change in tax rate	57,988			2,528			626
Shortfall (windfall) from stock based compensation	681			(150		)	—
Other	216			126			(57		)
State net operating loss carryforward adjustment	(305		)	933			685
Change in valuation allowance	(54,551		)	(6,758		)	(2,001		)
Income tax (benefit) expense	$	(449	)	$	163		$	14
Effective tax rate	(2.5		)%	1.9		%	0.5		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets are as follows:



Deferred Tax Assets	As of September 30
(in thousands)	2018			2017
Deferred tax assets:
Federal net operating loss carryforwards	$	91,639		$	144,455
Foreign net operating loss carryforwards	1,301			587
Income tax credit carryforwards	2,671			3,211
Inventory reserves	2,065			2,037
Accounts receivable reserves	123			8
Accrued warranty reserve	144			249
State net operating loss carryforwards	4,624			4,525
Stock compensation	728			2,367
Deferred compensation	200			349
Fixed assets and intangibles	(33		)	136
Other	838			927
Total deferred tax assets	104,300			158,851
Valuation allowance	(104,300		)	(158,851		)
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, 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
Adjustments based on tax positions related to the current year	—
Adjustments based on tax positions of prior years	—
Balance as of September 30, 2018	$	419