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13. INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Income Taxes | For the years ended September 30, 2024, 2023 and 2022 the Company's loss from continuing operations before provision for income taxes were as follows:
|  | For the year ended September 30, |
($ in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Domestic |  | $ | (142,433 | ) |  | $ | (131,303 | ) |  | $ | (40,089 | )
Foreign |  |  | — |  |  |  | — |  |  |  | — |
Loss before income taxes |  | $ | (142,433 | ) |  | $ | (131,303 | ) |  | $ | (40,089 | )
Components of Provision for Income Tax Expense | The components of the provision for income taxes in the years ended September 30, 2024, 2023 and 2022 were as follows:
|  | For the year ended September 30, |
($ in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | — |  |  |  | — |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,344 |  |  | $ | 2,416 |  |  | $ | — |
State |  |  | — |  |  |  | — |  |  |  | — |
Provision for income taxes |  | $ | 3,344 |  |  | $ | 2,416 |  |  | $ | — |
Statutory U.S federal income tax rate |
|  | For the year ended September 30, |
($ in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Tax benefit at federal statutory rate |  | $ | (29,911 | ) |  | $ | (27,574 | ) |  | $ | (8,417 | )
State taxes (net of federal benefit) |  |  | (3,075 | ) |  |  | 5,820 |  |  |  | (303 | )
162(m) Excess Executive Compensation |  |  | 9,806 |  |  |  | 6,823 |  |  |  | — |
Stock Option (Windfall)/Shortfall |  |  | (2,314 | ) |  |  | — |  |  |  | — |
Return to Provision Adjustments |  |  | 2,301 |  |  |  | 29 |  |  |  | — |
Deferred Only Adjustments |  |  | 15,445 |  |  |  | 745 |  |  |  | 4,408 |
Discontinued Operations |  |  | — |  |  |  | — |  |  |  | (3,750 | )
Change in Valuation Allowance |  |  | 10,299 |  |  |  | 15,871 |  |  |  | 6,232 |
Other |  |  | 793 |  |  |  | 702 |  |  |  | 1,830 |
|  | $ | 3,344 |  |  | $ | 2,416 |  |  | $ | — |
Deferred income taxes are the result of timing differences between GAAP accounting and tax basis of certain assets and liabilities, timing of income and expense recognition of certain items, and tax attributes such at net operating loss carry-forwards. These differences result in deferred tax assets and liabilities, which are recorded in the balance sheet, net of valuation allowance. The Company evaluates the realizability of its deferred tax assets and assesses the need for a valuation allowance on an ongoing basis. In evaluating its deferred tax assets, the Company considers whether it is more likely than not that the deferred income tax assets will be realized. The ultimate realization of deferred tax assets depends upon generating sufficient future taxable income prior to the expiration of the tax attributes. This assessment requires significant judgment.
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company's deferred tax assets and liabilities as of September 30, 2024 and 2023 were as follows:
($ in thousands) |  | September 30, 2024 |  |  | September 30, 2023 |
Deferred Tax Assets: |  |  |  |  |  |
Right of Use - Lease Liability |  | $ | 340 |  |  | $ | (140 | )
Charitable Contributions |  |  | 98 |  |  |  | 64 |
Tax Credits |  |  | 200 |  |  |  | 200 |
Stock Based Compensation |  |  | 113 |  |  |  | 281 |
Interest Expense Carryforwards |  |  | — |  |  |  | 652 |
Intangible Assets |  |  | 2,926 |  |  |  | 3,784 |
Net Operating Loss carryforwards |  |  | 77,788 |  |  |  | 56,708 |
Other |  |  | 1,134 |  |  |  | 4,085 |
Gross Deferred Tax Assets |  | $ | 82,599 |  |  | $ | 65,634 |
Valuation Allowance |  |  | (54,926 | ) |  |  | (44,627 | )
Total deferred tax assets, net of valuation allowance |  | $ | 27,673 |  |  | $ | 21,007 |
Deferred Tax Liabilities |  |  |  |  |  |
Right of Use - Lease Asset |  | $ | (691 | ) |  | $ | 138 |
Prepaid Expenses |  |  | (927 | ) |  |  | (636 | )
Change in Fair Value of Digital Currency |  |  | (22,706 | ) |  |  | — |
Other |  |  | (1,070 | ) |  |  | (1,451 | )
Fixed Assets & Intangible Assets |  |  | (8,040 | ) |  |  | (21,474 | )
Gross Deferred Tax Liabilities |  | $ | (33,434 | ) |  | $ | (23,423 | )
Net Deferred Tax Liabilities |  | $ | (5,761 | ) |  | $ | (2,416 | )
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, 2024 |  |  | September 30, 2023 |
Net Non-current Deferred Tax Liabilities |  | $ | (5,761 | ) |  | $ | (2,416 | )
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, 2024 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, 2024 and September 30, 2023.
|  | As of September 30, |
|  | 2024 |  |  | 2023 |
Valuation Allowance |  | $ | (54,926 | ) |  | $ | (44,627 | )

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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