XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Income Taxes | 12 Months Ended
--- | ---
Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 6 - INCOME TAXES The provision for income tax expense (benefit) consists of:
|  | Year Ended September 30, |
|  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 1,680,000 |  |  | $ | 992,000 |
State |  |  | 317,000 |  |  |  | 189,000 |
Total current |  |  | 1,997,000 |  |  |  | 1,181,000 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (2,701,000 | ) |  |  | (269,000 | )
State |  |  | (617,000 | ) |  |  | (83,000 | )
Total deferred |  |  | (3,318,000 | ) |  |  | (352,000 | )
Income tax expense (benefit) |  | $ | (1,321,000 | ) |  | $ | 829,000 |
A reconciliation of the federal statutory tax rate to the total tax provision (benefit) is as follows:
|  | Year Ended September 30, |
|  | 2022 |  |  | 2021 |
Federal income taxes computed at the statutory rate |  |  | (21.0 | % ) |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | (11.8 | % ) |  |  | 1.6 | %
Research & development tax refunds & credits |  |  | (28.8 | %) |  |  | (5.1 | %)
Dividend received deduction |  |  | (6.4 | %) |  |  | (1.9 | %)
Other, net |  |  | (10.0 | %) |  |  | (3.1 | %)
Effective income tax rate |  |  | (78.0 | % ) |  |  | 12.5 | %
Deferred income tax assets and liabilities consist of the following:
|  | September 30, |
|  | 2022 |  |  | 2021 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Accrued liabilities and reserves |  | $ | 155,000 |  |  | $ | 276,000 |
Allowance for doubtful accounts |  |  | 83,000 |  |  |  | 72,000 |
Inventory |  |  | 3,197,000 |  |  |  | 1,783,000 |
Stock-based compensation |  |  | — |  |  |  | 79,000 |
Unrealized loss on investments |  |  | 1,272,000 |  |  |  | — |
Net operating losses carryforwards |  |  | 352,000 |  |  |  | 20,000 |
Gross Deferred Income Tax Assets |  |  | 5,059,000 |  |  |  | 2,230,000 |
Deferred and Other Tax Liabilities: |  |  |  |  |  |  |  |
Domestic international sales corporation |  |  | (136,000 | ) |  |  | (236,000 | )
Property and equipment |  |  | (1,868,000 | ) |  |  | (1,943,000 | )
Unrealized gain on investments |  |  | — |  |  |  | (295,000 | )
Unrecognized tax benefits |  |  | (131,000 | ) |  |  | (150,000 | )
Gross Deferred and Other Income Tax Liabilities |  |  | (2,135,000 | ) |  |  | (2,624,000 | )
Net Deferred and Other Income Tax Assets (Liabilities) |  | $ | 2,924,000 |  |  | $ | (394,000 | )
Total income taxes paid in fiscal 2022 and 2021 were $2,839,000 and $1,963,000, respectively. GAAP prescribes a comprehensive model for the financial recognition, measurement, classification, and disclosure of uncertain tax positions. GAAP contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, based on the technical merits of the position. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Significant judgment is required in evaluating the Company’s uncertain tax position and determining the Company’s provision for taxes. Although the Company believes the reserves of unrecognized tax benefits (“UTB’s”) are reasonable, no assurance can be given that the final outcome of these matters will not be different from that which is reflected in the Company’s historical income tax provision and accruals. The Company adjusts these reserves in light of changing facts and circumstances. As of September 30, 2022 and 2021, the Company had UTB’s of $ 131,000 and $ 150,000 , respectively. In the fiscal year ended September 30, 2022, the Company used all $150,000 of accrued UTB’s and accrued an additional $131,000 of UTB’s. There were no additional accruals of UTB’s during the fiscal year ended September 30, 2021. The Company recognizes interest and penalties accrued related to UTB’s as a component of income tax expense. There were no additional accruals of interest expense nor penalties of significance during fiscal years ended September 30, 2022 and 2021. It is reasonably possible that the amount of the UTB’s with respect to certain unrecognized tax positions will increase or decrease during the next 12 months. The Company does not expect the change to have a material effect on its results of operations or its financial position. The only expected potential reason for change would be the ultimate results stemming from any examinations by taxing authorities. If recognized, the entire amount of UTB’s would have an impact on the Company’s effective income tax rate. The effective income tax rate for fiscal 2022 was a benefit of ( 78.0% ) versus expense of 12.5% in fiscal 2021. In fiscal 2022, the Company generated $475,000 of federal research and development tax credits (“R&D Credits”), all of which were used in fiscal 2022. In fiscal 2021, the Company generated $335,000 of R&D Credits, all of which were used in fiscal 2021. There were no R&D Credits carryforwards as of September 30, 2022 or September 30, 2021. The Company files U.S. federal income tax returns, as well as Florida and Iowa income tax returns. The Company’s U.S. federal income tax returns filed for tax years prior to fiscal year ended September 30, 2019 are generally no longer subject to examination by taxing authorities due to the expiration of the statute of limitations.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration