Income Taxes (Tables)
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12 Months Ended |
Sep. 30, 2023 |
Income Tax Disclosure [Abstract] |
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Schedule of Components of Income Taxes |
The components of income before income taxes are (in thousands): | | | | | | | | | | | | | | | | | | | Year ended September 30, | | 2023 | | 2022 | | 2021 | United States | $ | 21,149 | | | $ | 13,220 | | | $ | 5,380 | | International | 3,769 | | | 5,408 | | | 3,619 | | Income before income taxes | $ | 24,918 | | | $ | 18,628 | | | $ | 8,999 | |
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Schedule of Components of Income Tax Provision |
The components of the income tax benefit are (in thousands): | | | | | | | | | | | | | | | | | | | Year ended September 30, | | 2023 | | 2022 | | 2021 | Current: | | | | | | Federal | $ | 9,894 | | | $ | 281 | | | $ | 1,388 | | State | 1,955 | | | 766 | | | 242 | | Foreign | 598 | | | 1,277 | | | 1,678 | | Deferred: | | | | | | Federal | (12,131) | | | (2,982) | | | (3,627) | | State | — | | | — | | | (618) | | Foreign | (168) | | | (97) | | | (430) | | Income tax (benefit) expense | $ | 148 | | | $ | (755) | | | $ | (1,367) | |
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Schedule of Net Deferred Tax Asset |
Net deferred tax liability consists of (in thousands): | | | | | | | | | | | | | As of September 30, | | 2023 | | 2022 | | | | | Non-current deferred tax asset | $ | 4,884 | | | $ | — | | | | | | Non-current deferred tax liability | (1,812) | | | (9,666) | | Net deferred tax asset (liability) | $ | 3,072 | | | $ | (9,666) | | | | | | Depreciation and amortization | $ | (3,362) | | | $ | (4,930) | | Lease asset | (2,866) | | | (3,392) | | Lease liability | 3,897 | | | 4,497 | | Inventories | 6,407 | | | 2,586 | | Compensation costs | 5,559 | | | 3,999 | | Other accruals | 9,011 | | | 7,413 | | Tax credit carryforwards | 3,867 | | | 7,445 | | Valuation allowance | (3,254) | | | (2,976) | | Identifiable intangible assets | (25,276) | | | (24,308) | | | | | | Research and development costs | 9,089 | | | — | | Net deferred tax asset (liability) | $ | 3,072 | | | $ | (9,666) | |
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Schedule of Effective Income Tax Rate Reconciliation |
The reconciliation of the statutory federal income tax amount to our income tax benefit is (in thousands): | | | | | | | | | | | | | | | | | | | Year ended September 30, | | 2023 | | 2022 | | 2021 | Statutory income tax amount | $ | 5,233 | | | $ | 3,912 | | | $ | 1,890 | | Increase (decrease) resulting from: | | | | | | State taxes, net of federal benefits | 636 | | | 85 | | | 319 | | | | | | | | | | | | | | Transaction costs | — | | | 2 | | | 60 | | Employee stock purchase plan | 165 | | | 98 | | | 79 | | Foreign operations | 984 | | | 1,552 | | | 556 | | Non-deductible executive compensation | 373 | | | 291 | | | 150 | | Change in valuation allowance | — | | | — | | | (2,187) | | Capital Loss Expiration | — | | | — | | | 2,301 | | Utilization of research and development tax credits | (4,678) | | | (2,780) | | | (3,116) | | | | | | | | Deferred balance sheet remeasure | — | | | — | | | (952) | | ASU 2016-09 excess stock compensation | (1,678) | | | (2,967) | | | (1,131) | | Contingent consideration | — | | | (1,239) | | | 1,212 | | Changes from provision to return | 181 | | | 413 | | | (458) | | Adjustment of tax contingency reserves | 238 | | | 417 | | | 329 | | U.S. deduction for foreign export sales | (1,419) | | | (584) | | | (630) | | | | | | | | | | | | | | Global intangible low-taxed income | — | | | — | | | 33 | | Other, net | 113 | | | 45 | | | 178 | | Income tax (benefit) expense | $ | 148 | | | $ | (755) | | | $ | (1,367) | |
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Schedule of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): | | | | | | | | | | | | | | | | | | | Year ended September 30, | | 2023 | | 2022 | | 2021 | Unrecognized tax benefits at beginning of fiscal year | $ | 3,316 | | | $ | 2,908 | | | $ | 2,600 | | Increases related to: | | | | | | Prior year income tax positions | 100 | | | — | | | 40 | | Current year income tax positions | 858 | | | 524 | | | 507 | | Decreases related to: | | | | | | Prior year income tax positions | (159) | | | (21) | | | (155) | | Settlements | — | | | — | | | — | | Expiration of statute of limitations | (953) | | | (95) | | | (84) | | Unrecognized tax benefits at end of fiscal year | $ | 3,162 | | | $ | 3,316 | | | $ | 2,908 | |
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