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11. INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Components of Provision for Income Tax Expense

The components of the provision for income taxes in the years ended September 30, 2023 and 2022 were as follows:

($ in thousands)		September 30, 2023				September 30, 2022
Current:
Federal		$	—			$	—
State			—				—
Deferred:
Federal		$	857			$	—
State			—				—
Provision for income taxes		$	857			$	—

Schedule of Income (Loss) before Income Taxes

For the years ended September 30, 2023 and 2022 the Company's loss from continuing operations before provision for income taxes were as follows:

($ in thousands)		September 30, 2023				September 30, 2022
Domestic		$	(131,303	)		$	(40,089	)
Foreign			—				—
Loss before income taxes		$	(131,303	)		$	(40,089	)

Statutory U.S federal income tax rate

($ in thousands)		September 30, 2023				September 30, 2022
Tax benefit at federal statutory rate		$	(27,574	)		$	(8,417	)
State taxes (net of federal benefit)			5,820				(303	)
Meals and entertainment			18				30
Stock based compensation			356				2,061
162(m) Excess Executive Compensation			6,823				—
ISO - Disqualifying Dispositions			(127	)			(58	)
Deferred only adjustment			(13,794	)			4,408
R&D Credits			—				(200	)
Discontinued Operations			—				(3,750	)
Other			485				(3	)
Change in Valuation Allowance			28,850				6,232
		$	857			$	—

Schedule of Deferred Tax Assets and Liabilities

The significant components of the Company's deferred tax assets and liabilities as of September 30, 2023 and 2022 were as follows:

($ in thousands)		September 30, 2023				September 30, 2022
Deferred Tax Assets:
Right of Use - Lease Liability		$	183			$	269
Charitable Contributions			64				7
Section 1231 Loss Carryforwards			983				1,183
Tax Credits			200				401
Stock Based Compensation			4,512				3,740
Interest Expense Carryforwards			653				194
Intangible Assets			6,999				—
Net Operating Loss carryforwards			66,333				93,052
Other			2,078				—
Gross Deferred Tax Assets		$	82,005			$	98,846
Valuation Allowance			(54,608	)			(28,756	)
Total deferred tax assets, net of valuation allowance		$	27,397			$	70,090
Deferred Tax Liabilities
Right of Use - Lease Asset		$	(180	)		$	(265	)
Prepaid Expenses			(636	)			(222	)
Unrealized Gain on Derivative Asset			—				(85	)
Unrealized Gain on Equity Security			—				(63	)
Gain/Loss on Sale of Assets not on TR			—				(26	)
Other			(898	)			—
Fixed Assets & Intangible Assets			(26,540	)			(69,429	)
Net Deferred Tax Liability		$	(857	)		$	—

Schedule of non current deferred tax assets and liabilities table text block

For balance sheet presentation, the Company nets non-current deferred tax assets (net of valuation allowance) and liabilities. The following table summarizes the presentation:

		September 30, 2023				September 30, 2022
Net Non-current Deferred Tax Liabilities		$	(857	)		$	—

In accordance with ASC 740, Accounting for Income Taxes, the Company evaluates its deferred income taxes to determine if valuation allowances are required. Pursuant to U.S. income tax accounting standards, companies assess whether valuation allowances should be established against their deferred tax assets based on the consideration of all available evidence using a “more-likely-than-not” standard. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. The Company considers the scheduled reversal of deferred tax liabilities. To fully utilize the net operating loss (“NOL”) carryforward, the Company will need to generate sufficient future taxable income in each respective jurisdiction. Due primarily to the Company’s history of losses, it is more likely than not that all or a portion of its deferred tax assets as of September 30, 2023 will not be realized.

Schedule of Valuation Allowance

The Company recorded a valuation allowance to offset the DTA that is not considered realizable for the tax year ended September 30, 2023 and September 30, 2022.

		As of September 30,
		2023				2022
Valuation Allowance		$	(54,608	)		$	(28,756	)

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