Income and Other Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income (Loss) from Continuing Operations before Income Taxes

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

	For the Fiscal Year Ended September 30,
(in thousands)	2021		2020		2019
Domestic	$	25,744	$	(7,159)	$	(35,100)
Foreign	471		219		(830)
Loss before income taxes	$	26,215	$	(6,940)	$	(35,930)

Income Tax (Benefit) Expense

The Company’s income tax expense consisted of the following:

	For the Fiscal Year Ended September 30,
(in thousands)	2021		2020		2019
Federal:
Current	$	—	$	30	$	—
Deferred	—		(43)		—
	—		(13)		—
State:
Current	990		98		54
Deferred	—		(25)		—
	990		73		54
Foreign:
Current	(418)		—		—
Deferred	—		—		—
	(418)		—		—
Total income tax expense	$	572	$	60	$	54

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:

	For the Fiscal Year Ended September 30,
(in thousands)	2021			2020			2019
Income tax expense (benefit) computed at U.S. federal statutory rate	$	5,506		$	(1,457)		$	(7,540)
State tax expense (benefit), net of U.S. federal effect	990			(156)			(906)
Foreign tax rate differential	24			13			(28)
Effect due to change in tax rate	—			(137)			(183)
Shortfall from stock based compensation	(122)			432			248
Other	103			94			223
Federal benefit on PPP loan forgiveness	(1,363)			—			—
Change in uncertain tax positions	(419)			—			—
State net operating loss carryforward adjustment	454			533			139
Change in valuation allowance	(4,601)			738			8,101
Income tax expense	$	572		$	60		$	54
Effective tax rate	2.2		%	0.9		%	0.2		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets are as follows:

	As of September 30,
(in thousands)	2021		2020
Federal net operating loss carryforwards	$	96,289	$	100,363
Foreign net operating loss carryforwards	1,372		1,680
Income tax credit carryforwards	2,510		2,671
Inventory reserves	2,229		2,320
Accounts receivable reserves	62		55
Accrued warranty reserve	269		193
State net operating loss carryforwards	6,356		5,970
Stock compensation	979		806
Deferred compensation	476		443
Fixed assets and intangibles	(497)		(348)
ROU lease liability	3,289		3,529
ROU lease assets	(3,195)		(3,467)
Other	1,372		1,322
Total deferred tax assets	111,511		115,537
Valuation allowance	(111,511)		(115,537)
Net deferred tax liabilities	$	—	$	—

Schedule of Change in Unrecognized Gross Tax Benefits

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

(in thousands)	Amount
Balance as of September 30, 2019	$	419
Adjustments based on tax positions related to the current year	—
Adjustments based on tax positions of prior years	—
Balance as of September 30, 2020	419
Adjustments based on tax positions related to the current year	—
Adjustments based on tax positions of prior years	(419)
Balance as of September 30, 2021	$	—