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17. Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
Reconciliation of income tax expense |
|  | 2017 |  |  | 2016 (Restated) |
Current expense: |  |  |  |  |  |  |  |
Federal |  | $ | 313,405 |  |  | $ | 103,704 |
State |  |  | 243,841 |  |  |  | 52,745 |
|  |  | 557,246 |  |  |  | 156,449 |
Deferred expense: |  |  |  |  |  |  |  |
Federal |  |  | 3,397,732 |  |  |  | (15,114,529 | )
State |  |  | 126,841 |  |  |  | (609,764 | )
|  |  | 3,524,573 |  |  |  | (15,724,293 | )
Total income tax expense |  | $ | 4,081,819 |  |  | $ | (15,567,844 | )
Reconciliation between effective and statutory income tax rates | A reconciliation of the differences between the effective and statutory income tax rates for years ended September 30:
|  | 2017 |  |  | 2016 (Restated) |
|  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
Federal statutory rates |  | $ | 3,598,424 |  |  |  | 34% |  |  | $ | 1,830,150 |  |  |  | 77% |
State income taxes |  |  | 299,216 |  |  |  | 3% |  |  |  | 161,484 |  |  |  | 7% |
Permanent differences |  |  | 71,908 |  |  |  | 1% |  |  |  | (1,798,450 | ) |  |  | -75% |
Net operating loss adjustment |  |  | – |  |  |  |  |  |  |  | (1,194,004 | ) |  |  | -50% |
Property & equipment adjustment |  |  | – |  |  |  |  |  |  |  | 742,854 |  |  |  | 31% |
Equity compensation adjustment |  |  | – |  |  |  |  |  |  |  | (2,872,210 | ) |  |  | -120% |
Valuation allowance against net deferred tax assets |  |  | – |  |  |  |  |  |  |  | (12,284,278 | ) |  |  | -515% |
Other |  |  | 112,271 |  |  |  | 1% |  |  |  | (153,390 | ) |  |  | -6% |
Effective rate |  | $ | 4,081,819 |  |  |  | 39% |  |  | $ | (15,567,844 | ) |  |  | -652% |
The Company restated the prior year deferred income taxes related to the Marquis acquisition. Certain deferred tax items were not recorded by the Company. The Company has adjusted the deferred taxes associated with property and equipment and stock compensation.
|  | September 30, 2016 |
|  | As previously |  |  |  |  |  |  |
|  | Reported |  |  | Adjustment |  |  | As restated |
Income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal statuary rate |  | $ | 1,830,150 |  |  | $ | – |  |  | $ | 1,830,150 |
State taxes, net of federal benefit |  |  | 161,484 |  |  |  | – |  |  |  | 161,484 |
Permanent difference |  |  | (852,646 | ) |  |  | (945,804 | ) |  |  | (1,798,450 | )
Net operating loss adjustment |  |  | (1,083,866 | ) |  |  | (110,138 | ) |  |  | (1,194,004 | )
Property and equipment adjustment |  |  | – |  |  |  | 742,854 |  |  |  | 742,854 |
Equity compensation adjustment |  |  | – |  |  |  | (2,872,210 | ) |  |  | (2,872,210 | )
Valuation allowance |  |  | (12,284,278 | ) |  |  | – |  |  |  | (12,284,278 | )
Other |  |  | (264,065 | ) |  |  | 110,675 |  |  |  | (153,390 | )
|  | $ | (12,493,221 | ) |  | $ | (3,074,623 | ) |  | $ | (15,567,844 | )
Schedule of deferred income tax assets and liabilities |
|  | 2017 |  |  | 2016 (Restated) |
Deferred income tax asset, current: |  |  |  |  |  |  |  |
Allowance for bad debts |  | $ | 401,867 |  |  | $ | 406,733 |
Accrued expenses |  |  | 31,183 |  |  |  | 241,536 |
Inventory |  |  | 772,657 |  |  |  | 414,575 |
Accrued compensation |  |  | – |  |  |  | – |
Total deferred income tax asset, current |  |  | 1,205,706 |  |  |  | 1,062,844 |
Less: valuation allowance |  |  | – |  |  |  | – |
Deferred income tax asset, current, net |  |  | 1,205,706 |  |  |  | 1,062,844 |
Deferred income tax asset (liability), long-term: |  |  |  |  |  |  |  |
Net operating loss |  |  | 7,804,948 |  |  |  | 9,915,371 |
Tax credits |  |  | 377,776 |  |  |  | – |
Other |  |  | 3,743 |  |  |  | – |
Stock compensation |  |  | 2,982,009 |  |  |  | – |
Intangibles |  |  | 13,126 |  |  |  | 794,455 |
Property & equipment |  |  | (3,387,298 | ) |  |  | 751,912 |
Total deferred income tax asset, long-term |  |  | 7,794,304 |  |  |  | 11,461,738 |
Less: valuation allowance |  |  | – |  |  |  | – |
Deferred income tax asset, net |  |  | 7,794,304 |  |  |  | 11,461,738 |
Total deferred income tax asset |  | $ | 9,000,010 |  |  | $ | 12,524,582 |

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