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INCOME TAXES: | 12 Months Ended
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Sep. 30, 2013
Income Tax Disclosure [Abstract] |
INCOME TAXES: | INCOME TAXES: DLH accounts for income taxes in accordance with the "liability" method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. After an assessment of all available evidence (including historical and forecasted operating results), management has concluded that realization of the Company's net operating loss carryforwards (which included those amounts acquired in previous years' business combinations, collectively "NOLs"), tax credits and other deferred tax assets, could not be considered more likely than not. Accordingly, for the fiscal years ended September 30, 2013 and 2012, the Company did not record a tax benefit for NOLs and other deferred tax assets. Based on similar assessments, the Company increased the valuation allowance established on deferred tax assets by approximately $0.01 million and $0.8 million in 2013 and 2012, respectively. The increase in the valuation allowance is primarily due to increased Federal and state NOLs for the fiscal years ended September 30, 2013 and September 30, 2012. In prospective periods, there may be reductions to the valuation allowance to the extent that the Company concludes that it is more likely than not that all or a portion of the deferred tax assets can be utilized (subject to annual limitations and prior to the expiration of such NOLs), to offset future periods' taxable income. In the fiscal years ended September 30, 2013 and 2012, the Company did not recognize a tax expense or benefit. At September 30, 2013 the Company had net operating losses of approximately $41.5 million and $29.5 million for U.S. and state tax return purposes, respectively, and unutilized tax credits of approximately $1.1 million. As a result of previous business combinations and changes in its ownership, there is a substantial amount of NOLs that are subject to annual limitations on utilization. The U.S. NOLs begin to expire in 2021 and continue to expire through 2033. An analysis of DLH's deferred tax asset and liability is as follows (amounts in thousands):
|  | Years Ended September 30,
|  | 2013 |  | 2012
Deferred income tax asset (liability): |  |  |  |
Net operating loss carry forwards and tax credits |  | $ | 16,944 |  |  | $ | 16,459 |
Prepaid workers' compensation |  | 108 |  |  | 111 |
Deferred rent |  | 9 |  |  | 3 |
Accrued liabilities |  | 431 |  |  | 474 |
Stock based compensation |  | 500 |  |  | 424 |
Fixed and intangible assets |  | (1,989 | ) |  | (1,460 | )
Other items, net |  | 34 |  |  | 12 |
Valuation allowance |  | (16,037 | ) |  | (16,023 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows:
|  | Years Ended September 30,
(amounts in thousands) |  | 2013 |  | 2012
Current expense (benefit) |  | $ | — |  |  | $ | — |
Deferred expense (benefit) |  | — |  |  | — |
Total expense (benefit) |  | $ | — |  |  | $ | — |
The following table indicates the significant differences between the Federal statutory rate and DLH's effective tax rate for continuing operations:
|  | Years Ended September 30,
(amounts in thousands) |  | 2013 |  | 2012
Federal statutory rate |  | $ | (54 | ) |  | $ | (689 | )
State taxes, net |  | — |  |  | — |
Other permanent items |  | 3 |  |  | 13 |
Valuation allowance |  | 51 |  |  | 676 |
|  | $ | — |  |  | $ | — |

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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