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13. INCOME TAXES (Tables)

12 Months Ended

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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