INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2012

Components of provision for income taxes

Significant components of the provision for income taxes at the consolidated level, which includes Continuing and Discontinued Operations, are as follows:

	Year ended September 30,
(in thousands)	2012		2011			2010
Current income tax (benefit) provision:
State – Continuing Operations	$	54	$	24		$	30
Federal – Continuing Operations		—		21			—
Total provision for Continuing Operations		54		45			30

State – Discontinued Operations		—		(124	)		—
Federal – Discontinued Operations		—		124			—
Total provision for Discontinued Operations		—		—			—
Total provision for taxes	$	54	$	45		$	30

Effective tax rate reconciliation

The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows:

	Year ended September 30,
	2012			2011			2010
U.S. statutory federal tax rate		34.0	%		34.0	%		34.0	%
State taxes, net of federal tax benefit		(0.6	)%		3.3	%		4.4	%
Non-deductible expenses		(0.7	)%		(0.4	)%		(0.7	)%
Valuation allowance		(28.7	)%		(34.7	)%		(34.7	)%
Stock-based compensation		(4.3	)%		(2.8	)%		(3.7	)%
Other		(0.5	)%		0.1	%		—
Effective tax rate		(0.8	)%		(0.6	)%		(0.7	)%

Components of deferred income tax assets and liabilities

Deferred income taxes reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows:

	September 30,
(in thousands)	2012			2011
Deferred tax assets:
Accrued expenses	$	817		$	1,177
Depreciation		458			262
Accounts receivable allowance		65			143
Intangibles		2,703			1,951
Other deferred tax assets		1,133			936
Net operating loss carryforward		49,104			44,449
Valuation allowance		(52,195	)		(46,965	)
Total deferred tax assets		2,085			1,953

Deferred tax liabilities:
Other deferred tax liabilities	$	2,085		$	1,953
Total deferred tax liabilities		2,085			1,953

Net deferred tax assets (liabilities)	$	—		$	—