Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Schedule of Income Taxes from Continuing Operations

Income taxes from continuing operations in the accompanying consolidated statements of operations for the years ended September 30 are as follows (in thousands):

	2019			2018			2017
Current provision (benefit):
U.S. Federal	$	1,355		$	(890	)	$	2,125
U.S. State		192			51			(72	)
International		41			41			54
Total current provision (benefit)		1,588			(798	)		2,107
Deferred provision (benefit):
U.S. Federal		(1,505	)		(2,006	)		1,085
U.S. State		(117	)		(271	)		(85	)
International		—			—			—
Total deferred (benefit) provision (1)		(1,622	)		(2,277	)		1,000
Total (benefit) provision	$	(34	)	$	(3,075	)	$	3,107

Schedule of Reconciliation Difference of Income Taxes

The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 21%, 24.5% and 35% for fiscal 2019, 2018 and 2017, respectively, and the Company’s effective tax rate from continuing operations is as follows (in thousands):

	2019			2018			2017
Amount at statutory U.S. federal income tax rate	$	1,587		$	(1,845	)	$	2,461
Change because of the following items:
State income taxes, net of federal benefit		(452	)		(724	)		(13	)
U.S. Federal and foreign research and development credits		(2,464	)		(1,710	)		(706	)
Foreign and state rate differential		156			371			948
Valuation allowance change		671			960			665
Stock-based compensation (1)		(163	)		(2,063	)		330
Contingent consideration (gain) expense and related foreign currency revaluation		(61	)		142			125
U.S. Federal and state rate change		44			1,582			—
Tax reserve change		770			158			(52	)
Foreign-derived income deduction		(150	)		—			—
Federal manufacturing deduction		—			—			(313	)
Other		28			54			(338	)
Income tax provision	$	(34	)	$	(3,075	)	$	3,107

Schedule of Deferred Income Taxes

The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands):

	2019			2018
Depreciable assets	$	(905	)	$	(1,019	)
Deferred revenue		1,554			—
Accruals and reserves		585			1,308
Stock-based compensation		2,213			1,798
Impaired strategic investments		1,666			1,687
NOL carryforwards		3,308			4,637
U.S. Federal and state R&D credits		2,394			1,896
Other		689			538
Valuation allowance		(5,328	)		(4,541	)
Total deferred tax assets	$	6,176		$	6,304

Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

	2019			2018			2017
Beginning of fiscal year	$	1,559		$	1,481		$	1,508
Increases in tax positions for prior years		278			61			8
Decreases in tax positions for prior years		(2	)		—			(35	)
Increases in tax positions for current year		735			735			216
Settlements with taxing authorities		—			(613	)		—
Lapse of the statute of limitations		(247	)		(105	)		(216	)
End of fiscal year	$	2,323		$	1,559		$	1,481