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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Benefit (Provision) | Income before income taxes for the twelve months ended September 30, 2023, 2022, and 2021 is comprised of the following (amounts in thousands):
| 2023 |  | 2022 |  | 2021
Domestic | $ | 23,836 |  |  | $ | 11,483 |  |  | $ | 10,966 |
Foreign | (13,495) |  |  | (7,881) |  |  | (2,164) |
Total | $ | 10,341 |  |  | $ | 3,602 |  |  | $ | 8,802 |
For the twelve months ended September 30, 2023, 2022, and 2021 the income tax benefit (provision) was as follows (amounts in thousands):
| 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | (4,414) |  |  | $ | (233) |  |  | $ | — |
State | (1,215) |  |  | (325) |  |  | (78) |
Foreign | (1,023) |  |  | (1,800) |  |  | (1,119) |
Total current provision for income taxes | (6,652) |  |  | (2,358) |  |  | (1,197) |
Deferred: |  |  |  |  |
Federal | (659) |  |  | (1,400) |  |  | (1,387) |
State | 819 |  |  | 513 |  |  | 457 |
Foreign | 4,178 |  |  | 3,337 |  |  | 1,303 |
Total deferred provision for income taxes | 4,338 |  |  | 2,450 |  |  | 373 |
Total tax benefit (expense) | $ | (2,314) |  |  | $ | 92 |  |  | $ | (824) |
Schedule of Significant Components of Net Deferred Tax Assets and Liabilities | Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2023 and 2022 are as follows (amounts in thousands):
| 2023 |  | 2022 |  |
Deferred tax assets: |  |  |  |  |
Stock-based compensation | $ | 2,357 |  |  | $ | 1,793 |  |  |
Net operating loss carryforwards | 11,548 |  |  | 6,656 |  |  |
Research credit carryforwards | 4,336 |  |  | 7,747 |  |  |
Lease liability | 1,185 |  |  | 859 |  |  |
Intangibles | 4,606 |  |  | — |  |  |
Other, net | 852 |  |  | 1,117 |  |  |
Total deferred assets | 24,884 |  |  | 18,172 |  |  |
Deferred tax liabilities: |  |  |  |  |
Right of use asset | (1,032) |  |  | (633) |  |  |
Intangibles | (15,914) |  |  | (14,139) |  |  |
Total deferred liabilities | (16,946) |  |  | (14,772) |  |  |
Valuation allowance for net deferred tax assets | (2,769) |  |  | (2,868) |  |  |
Net deferred tax asset | $ | 5,169 |  |  | $ | 532 |  |  |
Schedule of Income Taxes Computed Using Federal Income Tax Rate | The difference between the income tax benefit (provision) and income taxes computed using the U.S. federal income tax rate was as follows for the twelve months ended September 30, 2023, 2022, and 2021 (amounts shown in thousands):
| 2023 |  | 2022 |  | 2021
Amount computed using statutory rate | $ | (2,172) |  |  | $ | (756) |  |  | $ | (1,849) |
Net change in valuation allowance for net deferred tax assets | 292 |  |  | (1,702) |  |  | (19) |
Other | (477) |  |  | 1,605 |  |  | — |
Foreign rate differential | 504 |  |  | 268 |  |  | 13 |
Non-deductible items | (14) |  |  | (64) |  |  | (141) |
Transaction costs | — |  |  | (411) |  |  | — |
State income tax | (100) |  |  | 251 |  |  | (276) |
Research and development credits | 791 |  |  | 1,166 |  |  | 1,248 |
Foreign income tax | — |  |  | — |  |  | (15) |
Contingent consideration | (432) |  |  | 285 |  |  | — |
Uncertain tax positions | (184) |  |  | (318) |  |  | — |
Stock compensation, net | (522) |  |  | (232) |  |  | 215 |
Income tax (provision) benefit | $ | (2,314) |  |  | $ | 92 |  |  | $ | (824) |
Schedule of Reconciliation of Unrecognized Tax Benefits | The following table reconciles the beginning and ending amount of unrecognized tax benefits for the twelve months ended September 30, 2023, 2022, and 2021 (amounts shown in thousands):
| 2023 |  | 2022 |  | 2021
Gross unrecognized tax benefits at the beginning of the year | $ | 2,664 |  |  | $ | 2,114 |  |  | $ | 1,810 |
Additions from tax positions taken in the current year | 330 |  |  | 484 |  |  | 268 |
Additions from tax positions taken in prior years | — |  |  | 66 |  |  | 36 |
Reductions from tax positions taken in prior years | (9) |  |  | — |  |  | — |
Gross unrecognized tax benefits at end of the year | $ | 2,985 |  |  | $ | 2,664 |  |  | $ | 2,114 |

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