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INCOME TAXES | 12 Months Ended
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Sep. 30, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 21 – INCOME TAXES The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act reduces the maximum U.S. federal corporate tax rate from 35% to 21%, allows net operating losses incurred in 2018 and beyond to be carried forward indefinitely, allows alternative minimum tax carryforwards to be partially refunded, beginning in 2018, and fully refunded by 2021, and creates new taxes on certain foreign sourced earnings. At September 30, 2024, the Company had approximately $15,052,834 of federal, $5,209,518 of state, and $1,646,625 of foreign net operating loss carryforwards. The net operating loss carryforwards, if not utilized, will begin to expire in 2030 for federal purposes and in 2026 for state purposes. The company is currently reviewing net operating losses for Section 382 limitation purposes and will make any required adjustments to the net operating losses at the completion of the study. The following is a geographical breakdown of loss before the provision for income taxes. SCHEDULE OF (LOSS) INCOME BEFORE PROVISION FOR TAX
|  | 2024 |  |  | 2023 |
|  | Year ended September 30, |
|  | 2024 |  |  | 2023 |
Domestic |  | $ | (7,090,508 | ) |  | $ | (6,279,077 | )
Foreign |  |  | (385,841 | ) |  |  | 277,964 |
Loss before provision for income taxes |  | $ | (7,476,349 | ) |  | $ | (6,001,113 | )
The provision for income taxes consisted of the following. SCHEDULE OF PROVISION FOR INCOME TAXES
|  | September 30, 2024 |  |  | September 30, 2023 |
Current (benefit)/provision |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State |  |  | 165,093 |  |  |  | 319,427 |
Foreign |  |  | 37,187 |  |  |  | 74,845 |
Total current (benefit)/provision |  |  | 202,280 |  |  |  | 394,272 |
Deferred provision |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State |  |  | - |  |  |  | - |
Foreign |  |  | - |  |  |  | - |
Total deferred provision |  | $ | - |  |  | $ | - |
Total (benefit)/provision for income taxes |  | $ | 202,280 |  |  | $ | 394,272 |
The following is a reconciliation of the effective income tax rate to the federal and state statutory rates. SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION
|  | For the Fiscal Year |  |  | For the Fiscal Year |
|  | Ended |  |  | Ended |
|  | September 30, 2024 |  |  | September 30, 2023 |
U.S. statutory rate |  |  | 21.00 | % |  |  | 21.00 | %
State taxes, net of federal |  |  | -1.74 | % |  |  | -4.21 | %
Foreign tax rate differential |  |  | -0.23 | % |  |  | -0.45 | %
Change in valuation allowance |  |  | -13.23 | % |  |  | -22.51 | %
Return to provision |  |  | -1.44 | % |  |  | 0.98 | %
State Rate Change |  |  | -0.50 | % |  |  | 0.00 | %
Goodwill impairment |  |  | -1.49 | % |  |  | 0.00 | %
Write-Off of Related Party Note with Majority Owner |  |  | -2.35 | % |  |  | 0.00 | %
Issuance Costs - Equity Financing |  |  | -2.80 | % |  |  | 0.00 | %
Fair Value Adjustments on Warrants |  |  | 1.64 | % |  |  | 0.00 | %
Global intangible income |  |  | 0.00 | % |  |  | -0.97 | %
Other permanent differences |  |  | -1.56 | % |  |  | -0.42 | %
Effective Tax Rate |  |  | -2.71 | % |  |  | -6.57 | %
The components of our deferred tax assets and liabilities are summarized as follows. SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
|  | September 30, 2024 |  |  | September 30, 2023 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Net operating Loss carryforwards |  | $ | 21,908,977 |  |  | $ | 20,375,296 |
Inventory and other reserves |  |  | 1,363,737 |  |  |  | 1,221,903 |
Allowance for bad debt |  |  | 32,919 |  |  |  | 32,633 |
Interest Expense Limitation |  |  | 4,751,442 |  |  |  | 4,193,177 |
Accruals |  |  | 439,996 |  |  |  | 293,956 |
Capitalized R&D |  |  | 852,417 |  |  |  | 27,359 |
Warranty reserve |  |  | 27,287 |  |  |  | 476,045 |
Other |  |  | 15,270 |  |  |  | 6,927 |
Total gross deferred taxes |  |  | 29,392,045 |  |  |  | 26,627,296 |
Valuation allowance |  |  | (28,127,540 | ) |  |  | (24,744,527 | )
Net deferred tax assets |  |  | 1,264,505 |  |  |  | 1,882,769 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Deferred revenue |  |  | (296,090 | ) |  |  | (363,423 | )
Prepaid expenses |  |  | (132,685 | ) |  |  | (127,852 | )
Goodwill amortization |  |  | (10,020 | ) |  |  | (512,702 | )
Depreciation |  |  | (825,710 | ) |  |  | (878,792 | )
Total deferred tax liabilities |  |  | (1,264,505 | ) |  |  | (1,882,769 | )
Total deferred tax assets (liabilities) |  | $ | - |  |  | $ | - |
Management has concluded that it is more likely than not that the deferred tax assets will not be realized and has reduced the asset by a valuation allowance.

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