XML 32 R21.htm IDEA: XBRL DOCUMENT v3.21.2
INCOME TAXES
 9 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE N – INCOME TAXES

The Company records income taxes using the asset and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns; (ii) are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases; and (iii) are measured using enacted tax rates expected to apply in the years when those temporary differences are expected to be recovered or settled.

Where applicable, deferred tax assets are reduced by a valuation allowance for any portions determined not likely to be realized. The valuation allowance is assessed by management on a quarterly basis and adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances warrant. In assessing whether it is more likely than not that some portion or all of the deferred tax assets will not be realized, management considers projections of future taxable income, the projected periods in which current temporary differences will be deductible, the availability of carry forwards, feasible and permissible tax planning strategies and existing tax laws and regulations. The Company did not have a valuation allowance against its net deferred tax assets at June 30, 2021 or September 30, 2020.

A reconciliation of income tax between the amounts calculated based upon pre-tax income at the Company’s federal statutory rate and the amounts reflected in the consolidated statements of operations are as follows:

For the Three Months

For the Nine Months

Ended June 30,

Ended June 30,

2021

2020

2021

2020

(In thousands)

 

Income tax expense at the statutory federal tax rate of 21% for the three and nine months ended June 30, 2021 and 2020

$

492

$

186

$

1,346

$

407

State tax expense

194

39

588

202

Other

(10

)

(11

)

(36

)

(37

)

Income tax expense

$

676

$

214

$

1,898

$

572

On September 29, 2020, the State of New Jersey extended its temporary 2.5% surtax rate through December 31, 2023. Accordingly, the Company is using an 11.5% State tax rate for the calculation of its State income tax expense for the three and nine months ended June 30, 2021.