Income Taxes

9 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

For the three and nine months ended June 30, 2022, the Company recorded an income tax benefit of $447 due to release of a state tax reserve during the period. For the three and nine months ended June 30,2021, the Company recorded an income tax benefit of $9,384 and $19,788, respectively, due to the Company’s ability and intent to carryback its 2021 fiscal year tax loss under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was signed into law in March 2020. As of June 30, 2022, the Company recorded an income tax receivable of $28,728 consisting of an estimated federal net operating loss carryback for fiscal 2021 for which the Company has filed for a refund.

As of June 30, 2022, the Company has recorded a valuation allowance against all of its net deferred tax assets. The Company continues to believe it more likely that it will not have sufficient taxable income in the future that will allow it to realize all of its existing deferred tax assets. This is due to the fact the Company’s expenses are increasing as it continues to progress its wholly-owned research and development programs, while its royalty revenues from the AbbVie Agreement are not increasing.