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Income taxes

12 Months Ended

Sep. 30, 2025

Income taxes

Income taxes

13.Income taxes

The Company’s US and foreign income before taxes were as follows:

​

​	​	​	​	​	​	​
​	​ ​ ​	Year Ended		​ ​ ​	Year Ended
​	​	September 30,		​	September 30,
​	​	2025		​	2024
US	​	$	(6,453)	​	$	(1,770)
Foreign	​	​	(4,007)	​	​	(4,884)
​	​	$	(10,460)	​	$	(6,654)

​

The details of the Company’s income tax provision (benefit) are set forth below:

​

​	​	​	​	​	​	​
​	​ ​ ​	Year Ended		​ ​ ​	Year Ended
​	​	September 30,		​	September 30,
​	​	2025		​	2024
Current provision (benefit):	​	​	​	​	​	​
Federal	​	$	—	​	$	—
Foreign	​	​	—	​	​	—
State	​	​	156	​	​	(233)
​	​	​	156	​	​	(233)
Deferred provision (benefit):	​	​	​	​	​	​
Federal	​	​	8	​	​	369
Foreign	​	​	—	​	​	—
State	​	​	77	​	​	(27)
​	​	​	85	​	​	342
Provision for income taxes	​	$	241	​	$	109

​

The reconciliation of the Company’s income taxes calculated at the US federal statutory rate to its effective tax rate is set forth below:

​

​	​	​	​	​	​	​
​	​ ​ ​	Year Ended	​	​ ​ ​	Year Ended	​
​	​	September 30,	​	​	September 30,	​
​	​	2025	​	​	2024	​
US federal statutory rate	​	21.0	%	​	21.0	%
State taxes, net of federal benefit	​	(1.9)	​	​	3.2	​
Statutory rate differential attributable to foreign operations	​	2.3	​	​	1.6	​
Executive compensation	​	—	​	​	(3.4)	​
Stock-based compensation	​	(10.1)	​	​	3.2	​
Change in valuation allowance	​	(8.5)	​	​	(24.1)	​
Other permanent differences	​	(5.1)	​	​	(3.1)	​
Effective income tax rate	​	(2.3)	%	​	(1.6)	%

​

The Company prepared the income tax rate reconciliation using the income tax rate of US, determined using management’s judgment that the primary economic environment in which it will derive its revenues and expenses incurred to generate those revenues is the US. The statutory rate differential attributable to foreign operations is derived from local country taxes levied on the Company’s operations in Canada.

The change in valuation allowance relates to the Company’s deferred tax assets that it generated or utilized during the current year as well as changes in the Company’s assessment regarding its likelihood of using its deferred tax assets. The Company considered all the positive and negative evidence available to determine whether it is more likely than not that tax benefit from utilization of the deferred

tax assets will ultimately be realized. Based upon that evidence, the Company determined that only a portion of its deferred tax assets will be utilized in the future to offset taxable income generated by the reversal of its deferred tax liabilities.

Deferred tax

The Company’s deferred tax assets (liabilities) are comprised of the following:

​

​	​	​	​	​	​	​
​	​ ​ ​	Year Ended		​ ​ ​	Year Ended
​	​	September 30,		​	September 30,
​	​	2025		​	2024
Deferred tax assets:	​	​	​	​	​	​
Net and capital operating loss carryforwards	​	$	19,474	​	$	16,469
Goodwill	​	​	9,984	​	​	11,551
Lease liabilities	​	​	4,494	​	​	4,777
Interest expense	​	​	3,707	​	​	2,459
Accrued and stock-based compensation	​	​	2,733	​	​	3,146
Accounts receivable	​	​	1,075	​	​	2,074
Share issuance costs	​	​	349	​	​	540
Other	​	​	456	​	​	964
Total deferred tax assets	​	​	42,272	​	​	41,980
Deferred tax assets valuation allowances	​	​	(19,792)	​	​	(19,089)
Deferred tax asset, net	​	$	22,480	​	$	22,891
Deferred tax liabilities:	​	​	​	​	​	​
Property, equipment, and right of use assets, net	​	$	(9,985)	​	$	(9,080)
Intangible assets, net	​	​	(12,782)	​	​	(14,013)
Total deferred tax liabilities	​	$	(22,767)	​	$	(23,093)
Net deferred tax assets (liabilities)	​	$	(287)	​	$	(202)

​

The activity of the Company’s valuation allowance is as follows:

​

​	​	​	​	​	​	​	​
​	​ ​ ​	Year Ended		​ ​ ​	Year Ended
​	​	September 30,			September 30,
​	​	2025			2024
Balance at beginning of year	​	$	(19,089)	​	$	(17,667)	​
Increases	​	​	(703)	​	​	(1,422)	​
Balance at end of year	​	$	(19,792)	​	$	(19,089)	​

​

The US loss carryforwards of approximately $18,000,000 expire in 2029 through 2038 whereas the remaining US loss of approximately $28,000,000 can be carried forward indefinitely.

The Canadian non-capital loss carryforwards of approximately $28,000,000 have various expiry dates starting in 2027 through 2045. The net capital losses of approximately $1,000,000 can be carried forward indefinitely.

The Company does not have unrecognized tax benefits due to uncertain tax positions. Management has determined that it is more likely than not that all tax positions that the Company has recorded in its income tax provision and tax returns would be sustained upon examination by the taxing authorities. There are no audits currently in progress.

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The entire disclosure for income tax.

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