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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income Taxes | Income taxes on the consolidated statements of operations consisted of the following:
|  | Fiscal Year |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Current provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 263 |  |  | $ | (1,570 | ) |  | $ | 1,355 |
U.S. State |  |  | 108 |  |  |  | 42 |  |  |  | 192 |
International |  |  | 87 |  |  |  | 90 |  |  |  | 41 |
Total current provision (benefit) |  |  | 458 |  |  |  | (1,438 | ) |  |  | 1,588 |
Deferred provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | 1,851 |  |  |  | (1,336 | ) |  |  | (1,505 | )
U.S. State |  |  | (62 | ) |  |  | 197 |  |  |  | (117 | )
International |  |  | (138 | ) |  |  | — |  |  |  | — |
Total deferred benefit |  |  | 1,651 |  |  |  | (1,139 | ) |  |  | (1,622 | )
Total income tax provision (benefit) |  | $ | 2,109 |  |  | $ | (2,577 | ) |  | $ | (34 | )
Schedule of Reconciliation Difference of Income Taxes | The difference between amounts calculated at the statutory U.S. federal income tax rate of 21% and the Company’s effective tax rate was as follows:
|  | Fiscal Year |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Amount at statutory U.S. federal income tax rate |  | $ | 1,333 |  |  | $ | (305 | ) |  | $ | 1,587 |
Change because of the following items: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal benefit |  |  | (273 | ) |  |  | (551 | ) |  |  | (452 | )
U.S. federal and foreign R&D credits |  |  | (920 | ) |  |  | (1,571 | ) |  |  | (2,464 | )
Foreign and state rate differential |  |  | 596 |  |  |  | 212 |  |  |  | 156 |
Valuation allowance change |  |  | 1,059 |  |  |  | 825 |  |  |  | 671 |
Stock-based compensation (1) |  |  | (544 | ) |  |  | (81 | ) |  |  | (163 | )
Contingent consideration expense (gain) and related foreign currency revaluation |  |  | 3 |  |  |  | — |  |  |  | (61 | )
U.S. Federal and state rate change |  |  | (35 | ) |  |  | 17 |  |  |  | 44 |
Tax reserve change |  |  | (150 | ) |  |  | 609 |  |  |  | 770 |
Foreign-derived income deduction |  |  | — |  |  |  | (88 | ) |  |  | (150 | )
Impact of CARES Act |  |  | 735 |  |  |  | (1,700 | ) |  |  | — |
Acquisition-related transaction costs |  |  | 187 |  |  |  | — |  |  |  | — |
Other |  |  | 118 |  |  |  | 56 |  |  |  | 28 |
Income tax provision (benefit) |  | $ | 2,109 |  |  | $ | (2,577 | ) |  | $ | (34 | )
| (1) | Includes non-deductible stock-based compensation.
Schedule of Deferred Income Taxes, Net | The components of deferred income taxes, net, consisted of the following and resulted from differences in the recognition of transactions for income tax and financial reporting purposes:
|  | September 30, |
(In thousands) |  | 2021 |  |  | 2020 |
Depreciable assets |  | $ | (5,106 | ) |  | $ | (1,964 | )
Deferred revenue |  |  | 2,130 |  |  |  | 2,029 |
Accruals and reserves |  |  | 1,572 |  |  |  | 1,858 |
Stock-based compensation |  |  | 1,997 |  |  |  | 2,232 |
Impaired strategic investments |  |  | 1,782 |  |  |  | 1,767 |
NOL carryforwards |  |  | 4,319 |  |  |  | 3,526 |
U.S. Federal and state R&D credits |  |  | 3,066 |  |  |  | 3,216 |
Other |  |  | 618 |  |  |  | 897 |
Valuation allowance |  |  | (7,253 | ) |  |  | (6,246 | )
Deferred taxes, net |  | $ | 3,125 |  |  | $ | 7,315 |
Summary of Reconciliation of Changes in Unrecognized Tax Benefits | Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes pursuant to accounting guidance. The following is a reconciliation of the changes in unrecognized tax benefits, excluding interest and penalties:
|  | Fiscal Year |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Unrecognized tax benefits, beginning balance |  | $ | 2,871 |  |  | $ | 2,323 |  |  | $ | 1,559 |
Increases in tax positions for prior years |  |  | 15 |  |  |  | 58 |  |  |  | 278 |
Decreases in tax positions for prior years |  |  | (8 | ) |  |  | (1 | ) |  |  | (2 | )
Increases in tax positions for current year |  |  | 458 |  |  |  | 664 |  |  |  | 735 |
Settlements with taxing authorities |  |  | — |  |  |  | — |  |  |  | — |
Lapse of the statute of limitations |  |  | (449 | ) |  |  | (173 | ) |  |  | (247 | )
Unrecognized tax benefits, ending balance |  | $ | 2,887 |  |  | $ | 2,871 |  |  | $ | 2,323 |

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