Income and Other Taxes (Tables)

12 Months Ended

Sep. 30, 2023

Schedule of (Loss) Income from Operations before Income Taxes

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


	Year Ended September 30,
(in thousands)	2023		2022
Domestic	$	(49,371)	$	(40,608)
Foreign	—		(292)
Loss before income taxes	$	(49,371)	$	(40,900)

Schedule of Income Tax Expense (Benefit)

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


	Year Ended September 30,
(in thousands)	2023		2022
Federal:
Current	$	—	$	(125)
Deferred	(12)		12
	(12)		(113)
State:
Current	65		(37)
Deferred	(11)		11
	54		(26)
Foreign:
Current	—		—
Deferred	—		—

Total income tax expense (benefit)	$	42	$	(139)

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 before provision for income taxes is as follows:



	Year Ended September 30,
(in thousands)	2023			2022
Income tax benefit computed at U.S. federal statutory rate	$	(10,368)		$	(8,589)
State tax expense (benefit), net of U.S. federal effect	54			(27)
Foreign tax rate differential	355			(7)
Shortfall from stock based compensation	1,204			141
Other	20			85
Federal benefit on PPP loan forgiveness	15			—
Net operating loss carryforward expiration	12,839			11,705
Change in valuation allowance	(4,077)			(3,447)
Income tax expense (benefit)	$	42		$	(139)
Effective tax rate	0.1		%	(0.3)		%

Schedule of Deferred Tax Assets and (Liabilities)

Significant components of deferred tax assets (liabilities) are as follows:


	September 30,
(in thousands)	2023		2022
Federal net operating loss carryforwards	$	78,872	$	94,691
Foreign net operating loss carryforwards	—		1,135
Income tax credit carryforwards	355		592
Inventory reserves	1,666		735
Accounts receivable reserves	60		57
Accrued warranty reserve	103		115
State net operating loss carryforwards	7,547		7,888
Stock compensation	1,203		1,352
Deferred compensation	1,022		465
Fixed assets and intangibles	5,276		1,212
ROU lease liability	5,751		5,862
ROU lease assets	(5,195)		(5,724)
Capitalized Research expense	3,385		—
Other	2,935		2,443
Total deferred tax assets	102,981		110,823
Valuation allowance	(102,981)		(110,846)
Net deferred tax liabilities	$	—	$	(23)