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Note 13 - Income Taxes
 3 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

13. INCOME TAXES

 

For the three months ended December 31, 2022, the Company did not record an income tax expense benefit for the tax loss as the benefits are not expected to be realized during the current fiscal year through ordinary income generated during the second through fourth quarters or in a future year through recognition of a deferred tax asset. For the three months ended December 31, 2021, the Company recorded an income tax benefit of $291 reflecting an effective tax rate of 28.8%.

 

The Company expects to utilize its deferred tax asset in the future, except for those related to federal R&D tax credit carryforwards and net operating loss carryforwards, R&D credits, and foreign tax credits related to Genasys Spain and Genasys Canada, and continues to maintain a partial allowance.

 

 

ASC 740, Income Taxes, requires the Company to recognize in its consolidated financial statements uncertainties in tax positions taken that may not be sustained upon examination by the taxing authorities. If interest or penalties are assessed, the Company would recognize these charges as income tax expense. The Company has not recorded any income tax expense or benefit for uncertain tax positions.