Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Summary of Company's Activity

The Company’s activity was as follows:

	Fiscal Years Ended September 30,
	2020		2019
	(In thousands)
Beginning year balance	$	608	$	353
Decrease related to prior year tax positions		—		—
Increase related to current year tax positions		—		255
Settlements		—		—
Lapse of statutes of limitations		—		—
Ending year balance	$	608	$	608

Provision for Income Taxes

The Company’s income tax expense was as follows:

	Fiscal Years Ended September 30,
	2020		2019
	(In thousands)
Current
Federal	$	1,321	$	2,216
State		552		724
		1,873		2,940
Deferred
Federal		904		1,049
State		343		255
		1,247		1,304
Total	$	3,120	$	4,244

Principal Reasons for Differences from Federal Statutory Rate

The principal reasons for the differences from the federal statutory income tax rate and the Company’s effective tax rate were as follows:

	Fiscal Years Ended September 30,
	2020			2019
Federal statutory income tax rate		21.0	%		21.0	%
State income taxes, net of federal benefit		4.3			3.9
Permanent and other differences		0.2			0.2
Difference due to executive compensation		1.1			—
Adjustment to beginning deferred taxes		1.4			0.4
Uncertain tax position allowance		0.4			1.9
Amendment of prior period tax return		(1.5	)		(1.3	)
Stock-based compensation		1.6			1.3
Other		—			0.4
Effective income tax rate		28.5	%		27.8	%

Tax Effects of Temporary Differences of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows:

	Fiscal Years Ended September 30,
	2020			2019
	(In thousands)
Deferred tax assets
Accrued compensation	$	47		$	81
Stock compensation		13			14
State taxes		245			200
Capital loss carryforward		7			7
Gross deferred tax assets		312			302
Disallowed capital loss		(7	)		(7	)
Net deferred tax assets		305			295
Deferred tax liabilities
Property and equipment		(28	)		(42	)
Management contracts		(11,793	)		(10,522	)
Total deferred tax liabilities		(11,821	)		(10,564	)
Net deferred tax liabilities	$	(11,516	)	$	(10,269	)