Income and Other Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income (Loss) 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)	2019			2018			2017
Domestic	$	(35,100	)	$	(16,752	)	$	10,632
Foreign	(830		)	(1,150		)	(2,248		)
Income (loss) from continuing operations before income taxes	$	(35,930	)	$	(17,902	)	$	8,384

Income Tax (Benefit) Expense

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



Income tax (benefit) expense	For the Fiscal Years Ended September 30,
(in thousands)	2019		2018			2017
Federal:
Current	$	—	$	(502	)	$	135
Deferred	—		—			—
	—		(502		)	135
State:
Current	54		53			28
Deferred	—		—			—
	54		53			28
Foreign:
Current	—		—			—
Deferred	—		—			—
	—		—			—
Total income tax (benefit) expense	$	54	$	(449	)	$	163

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)	2019			2018			2017
Income tax (benefit) expense computed at U.S. federal statutory rate	$	(7,540	)	$	(4,346	)	$	2,841
State tax expense benefit, net of U.S. federal effect	(906		)	(168		)	414
Foreign tax rate differential	(28		)	36			229
Effect due to change in tax rate	(183		)	57,988			2,528
Shortfall (windfall) from stock based compensation	248			681			(150		)
Other	223			216			126
State net operating loss carryforward adjustment	139			(305		)	933
Change in valuation allowance	8,101			(54,551		)	(6,758		)
Income tax expense (benefit)	$	54		$	(449	)	$	163
Effective tax rate	0.2		%	(2.5		)%	1.9		%

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)	2019			2018
Deferred tax assets:
Federal net operating loss carryforwards	$	99,298		$	91,639
Foreign net operating loss carryforwards	1,271			1,301
Income tax credit carryforwards	2,671			2,671
Inventory reserves	3,535			2,065
Accounts receivable reserves	50			123
Accrued warranty reserve	153			144
State net operating loss carryforwards	6,174			4,624
Stock compensation	704			728
Deferred compensation	404			200
Fixed assets and intangibles	(2,693		)	(33		)
Other	2,255			838
Total deferred tax assets	113,822			104,300
Valuation allowance	(113,891		)	(104,300		)
Net deferred tax liabilities	$	(69	)	$	—

Schedule of Change in Unrecognized Gross Tax Benefits

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, 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
Adjustments based on tax positions related to the current year	—
Adjustments based on tax positions of prior years	—
Balance as of September 30, 2019	$	419