Income and Other Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of (Loss) Income from Operations before Income Taxes

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

	Year Ended September 30,
(in thousands)	2022		2021
Domestic	$	(22,510)	$	25,744
Foreign	(1,962)		471
(Loss) income before income taxes	$	(24,472)	$	26,215

Schedule of Income Tax (Benefit) Expense

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

	Year Ended September 30,
(in thousands)	2022		2021
Federal:
Current	$	(125)	$	—
Deferred	12		—
	(113)		—
State:
Current	(37)		990
Deferred	11		—
	(26)		990
Foreign:
Current	—		(418)
Deferred	—		—
	—		(418)
Total income tax (benefit) expense	$	(139)	$	572

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 (loss) income before provision for income taxes is as follows:

	Year Ended September 30,
(in thousands)	2022			2021
Income tax expense (benefit) computed at U.S. federal statutory rate	$	(5,139)		$	5,506
State tax expense (benefit), net of U.S. federal effect	(27)			990
Foreign tax rate differential	(73)			24
Effect due to change in tax rate	—			—
Shortfall from stock based compensation	141			(122)
Other	84			103
Federal benefit on PPP loan forgiveness	—			(1,363)
Change in uncertain tax positions	—			(419)
Net operating loss carryforward expiration	11,924			454
Change in valuation allowance	(7,049)			(4,601)
Income tax (benefit) expense	$	(139)		$	572
Effective tax rate	(0.6)		%	2.2		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets are as follows:

	September 30,
(in thousands)	2022		2021
Federal net operating loss carryforwards	$	89,236	$	96,289
Foreign net operating loss carryforwards	1,448		1,372
Income tax credit carryforwards	592		2,510
Inventory reserves	2,397		2,229
Accounts receivable reserves	57		62
Accrued warranty reserve	264		269
State net operating loss carryforwards	6,822		6,356
Stock compensation	1,352		979
Deferred compensation	465		476
Fixed assets and intangibles	202		(497)
ROU lease liability	5,862		3,289
ROU lease assets	(5,724)		(3,195)
Other	2,443		1,372
Total deferred tax assets	105,416		111,511
Valuation allowance	(105,439)		(111,511)
Net deferred tax liabilities	$	(23)	$	—

Schedule of Change in Unrecognized Gross Tax Benefits

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

	September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	—	$	419
Adjustments based on tax positions related to the current year	—		—
Adjustments based on tax positions of prior years	—		(419)
Balance at end of period	$	—	$	—