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Note 11 - Income Taxes
 9 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

11.  Income Taxes

 

Income tax expense consists of the estimated liability for state income taxes owed by the Company.  Net operating loss carryforwards are estimated to be sufficient to offset any potential taxable income for all periods presented. During the three months ended June 30, 2022 and 2021, the Company recognized an income tax expense of $4 and ($1,176), respectively, and during the nine months ended June 30, 2022 and 2021, the Company recognized an income tax expense of $12 and ($1,175), respectively.

 

During the year ended June 30, 2021, the acquisition of Hawk Search, Inc. (see Note 14) resulted in the recognition of deferred tax liabilities of approximately $1,181, related to intangible assets. Prior to the business combination, the Company had a full valuation allowance on its net deferred tax assets. The deferred tax liabilities generated from the business combination netted against the Company’s pre-existing deferred tax assets. Consequently, the impact of such resulted in the release of $1,181 of the pre-existing valuation allowance against the deferred tax assets and corresponding deferred tax benefit recognized during the three and nine months ended June 30, 2021.