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Income Taxes | 12 Months Ended
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Sep. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 18: Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Income tax expense for the years ended September 30, 2021 and 2020 is as follows:
|  | Year Ended |  |  | Year Ended |
|  | September 30, 2021 |  |  | September 30, 2020 |
Current expense: |  |  |  |  |  |
Federal |  | $ | 3,830 |  |  | $ | — |
State |  |  | 1,015 |  |  |  | 887 |
|  |  | 4,845 |  |  |  | 887 |
Deferred expense: |  |  |  |  |  |
Federal |  |  | 3,474 |  |  |  | 4,160 |
State |  |  | 588 |  |  |  | (84 | )
Change in valuation allowance |  |  | (245 | ) |  |  | (6 | )
|  |  | 3,817 |  |  |  | 4,070 |
Total income tax expense |  | $ | 8,662 |  |  | $ | 4,957 |
A reconciliation of the differences between the effective and statutory income tax rates for years ended September 30, 2021 and 2020:
|  | Year Ended |  |  | Year Ended |
|  | September 30, 2021 |  |  | September 30, 2020 |
Federal statutory rates |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 2.4 | % |  |  | 3.1 | %
Permanent differences |  |  | (0.9 | )% |  |  | 0.2 | %
Nondeductible transaction costs |  |  | — |  |  |  | 1.3 | %
Stock compensation |  |  | 1.7 | % |  |  | 0.0 | %
Bargain gain - purchase accounting |  |  | — |  |  |  | (2.0 | )%
PPP loan forgiveness |  |  | (3.3 | )% |  |  | — |
Property and equipment adjustment |  |  | 0.5 | % |  |  | 7.4 | %
Change in valuation allowance |  |  | (0.6 | )% |  |  | — |
Other |  |  | 1.0 | % |  |  | 0.7 | %
Effective rate |  |  | 21.8 | % |  |  | 31.7 | %
At September 30, 2021 and 2020, deferred income tax assets and liabilities were comprised of:
|  | September 30, 2021 |  |  | September 30, 2020 |
Deferred income tax assets (liabilities): |  |  |  |  |  |
Allowance for bad debts |  | $ | 15 |  |  | $ | 247 |
Accrued expenses |  |  | 168 |  |  |  | — |
Inventory |  |  | 836 |  |  |  | 1,201 |
Accrued compensation |  |  | 127 |  |  |  | 120 |
Net operating loss |  |  | 508 |  |  |  | 2,429 |
Tax credits |  |  | 540 |  |  |  | 489 |
Stock compensation |  |  | 1,466 |  |  |  | 2,290 |
Intangibles |  |  | (2,491 | ) |  |  | (1,753 | )
Property & equipment |  |  | (4,822 | ) |  |  | (5,476 | )
Right of use assets |  |  | (7,616 | ) |  |  | (8,341 | )
Lease liabilities |  |  | 9,136 |  |  |  | 9,525 |
Payroll protection program loans |  |  | — |  |  |  | 1,335 |
Other |  |  | 188 |  |  |  | 51 |
Less: Valuation allowance |  |  | (851 | ) |  |  | (1,096 | )
Total deferred income tax asset (liability) |  | $ | (2,796 | ) |  | $ | 1,021 |
The Company has federal and state net operating loss carryforwards of no ne and approximately $7.3 million, respectively, as of September 30, 2021. State net operating loss amounts begin to expire in 2034. The Company has state tax credit carryforwards as of September 30, 2021 of approximately $0.7 million. The 2017 through 2020 tax years are open to examination by the various federal and state jurisdictions. The Company was under IRS examination for the September 30, 2017 tax year, however, the matter was closed with no proposed adjustments. The Company evaluates all available evidence to determine if a valuation allowance is needed to reduce its deferred tax assets. Management has concluded that it is more likely than not that a portion of its existing tax benefits will not be realized. Accordingly, the Company has recorded a valuation allowance of approximately $0.8 million at September 30, 2021 to reduce its deferred tax assets. The Company annually conducts an analysis of its tax positions and has concluded that it has no uncertain tax positions as of September 30, 2021. The Company’s policy is to record uncertain tax positions as a component of income tax expense.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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