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Income Taxes | 12 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes The provision for income taxes consists of the following:
|  | Year Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (in thousands) |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | (39 | )
State |  |  | 560 |  |  | 231 |  |  | 202 |
|  | $ | 560 |  |  | $ | 231 |  |  | $ | 163 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  |  | (7,392 | ) |  |  | (47,879 | ) |  |  | 4,494 |
State |  |  | (1,913 | ) |  |  | (4,342 | ) |  |  | 1,171 |
|  | $ | (9,305 | ) |  | $ | (52,221 | ) |  | $ | 5,665 |
(Benefit) provision for income taxes |  | $ | (8,745 | ) |  | $ | (51,990 | ) |  | $ | 5,828 |
The reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows:
|  | Year Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (in thousands) |
Income tax (benefit) provision at federal statutory rate |  | $ | (26,555 | ) |  | $ | (49,280 | ) |  | $ | 4,707 |
(Reduction) increase in income taxes resulting from: |  |  |  |  |  |  |  |  |
State taxes, net of federal tax benefit |  |  | (2,062 | ) |  |  | (3,953 | ) |  | 669 |
Nondeductible stock compensation expenses |  |  | 313 |  |  | 251 |  |  | (241) |
Permanent items |  |  | 225 |  |  | 206 |  |  | 292 |
Change in valuation allowances |  |  | 18,201 |  |  | (22) |  |  | (140) |
162(m) limitation |  |  | 285 |  |  | 11 |  |  | 12 |
Impact of changing rates on deferred tax assets |  |  | 499 |  |  | (247) |  |  | 509 |
Expired tax attributes |  |  | 200 |  |  | 964 |  |  | 152 |
Other |  |  | 149 |  |  | 80 |  |  |  | (132 | )
Income tax (benefit) provision |  | $ | (8,745 | ) |  | $ | (51,990 | ) |  | $ | 5,828 |
The components of the Company's deferred taxes as of September 30, 2023 and 2022 are as follows:
|  | Year Ended September 30, |
|  | 2023 |  |  | 2022 |
|  | (in thousands) |
Net operating loss carryforwards |  | $ | 125,306 |  |  | $ | 131,897 |
Deferred credits |  |  | 1,057 |  |  |  | 703 |
Other accrued expenses |  |  | 1,234 |  |  |  | 1,769 |
Prepaids and other |  |  | 556 |  |  |  | 1,175 |
Warrant liabilities |  |  | 5,748 |  |  |  | 5,725 |
State alternative minimum tax |  |  | — |  |  |  | 1 |
Other reserves and estimated losses |  |  | 937 |  |  |  | 873 |
Operating lease liabilities |  |  | 2,991 |  |  |  | 8,012 |
Deferred revenue |  |  | 4,829 |  |  |  | 5,506 |
Interest expense carryforward |  |  | 6,457 |  |  |  | — |
Gross deferred tax assets |  | $ | 149,115 |  |  | $ | 155,661 |
Less: valuation allowance |  |  | (21,102 | ) |  |  | (2,901 | )
Total net deferred tax assets |  | $ | 128,013 |  |  | $ | 152,760 |
Intangible assets |  |  | — |  |  |  | (877 | )
Operating lease right-of-use assets |  |  | (2,475 | ) |  |  | (2,055 | )
Property and equipment |  |  | (131,805 | ) |  |  | (166,586 | )
Unrealized gain on equity investments |  |  | (2,148 | ) |  |  | (961 | )
Total deferred tax liabilities |  | $ | (136,427 | ) |  | $ | (170,479 | )
Net deferred tax liabilities |  | $ | (8,414 | ) |  | $ | (17,719 | )
The Company has federal and state income tax net operating losses (“NOL”) carryforwards of $562.6 million and $233.5 million, which expire in fiscal years 2027-2038 and 2023-2043, respectively. Approximately $194.2 million of our federal NOL carryforwards are not subject to expiration. These NOL carryovers are only available to offset 80% of taxable income in years in which they are utilized due to tax law changes as a result of the Tax Cuts and Jobs Act. The Company also has $29.1 million of interest expense carryovers as a result of 163j limitations as of September 30, 2023. The Company cannot conclude that it is more likely than not that the benefit from certain federal and state NOL carryforwards will not be realized. In recognition of this uncertainty, the Company has provided a valuation allowance of $21.1 million as of September 30, 2023 and $2.9 million as of September 30, 2022 on the deferred tax assets related to these state NOL carryforwards. If or when recognized, the tax benefits related to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of income tax expense. The federal and state NOL carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those NOLs are presented net of these unrecognized tax benefits. Because of the change of ownership provisions of the Tax Reform Act of 1986, use of a portion of our NOL and tax credit carryforwards may be limited in future periods. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. The Company determined it had an ownership change in February of 2009. Based on the study conducted at that time, a portion of the federal NOLs were determined to be limited by IRC Section 382, resulting in the Company writing off a portion of its NOLs at that time. Additionally, the Company’s initial public offering in August of 2018 resulted in a change in ownership under Section 382 of the Internal Revenue Code. The Company completed an update to the analysis of any potential limitation on the use of its net operating losses under Section 382 for the fiscal year ended September 30, 2023. Based on such analysis, the Company does not believe any ownership changes during the review period will further limit its ability to use its current net operating losses to offset future taxable income, if any. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
|  | Year Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (in thousands) |
Unrecognized tax benefits — October 1 |  | $ | 4,866 |  |  | $ | 4,866 |  |  | $ | 4,866 |
Gross decreases — tax positions in prior period |  |  | — |  |  |  | — |  |  |  | — |
Gross increases — tax positions in prior period |  |  | — |  |  |  | — |  |  |  | — |
Unrecognized tax benefits — September 30 |  | $ | 4,866 |  |  | $ | 4,866 |  |  | $ | 4,866 |
The Company’s unrecognized tax benefits of $4.9 million, $4.9 million and $4.9 million as of September 30, 2023, 2022, and 2021, respectively, is included as an offset to the net deferred tax asset balance. If recognized, the balance of the uncertain tax benefits would impact the effective tax rate. We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. We have not recorded accrued penalties or interest related to the unrecognized tax benefits noted above as the amounts would result in an adjustment to NOL carryforwards. We are subject to taxation in the United States and various states. As of September 30, 2023, the Company is no longer subject to U.S. federal or state examinations by taxing authorities for fiscal years prior to 2003.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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