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Income Taxes (Tables)
12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Summary of Income Tax Benefit (Expense) During the years ended September 30, 2019, 2018, and 2017, the Company recorded income tax benefit (expense) as follows:

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Current income tax benefit (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(1,841

)

 

$

(16,449

)

 

$

(10,078

)

State

 

 

(372

)

 

 

(2,858

)

 

 

(813

)

Deferred income tax benefit (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

2,431

 

 

 

(2,245

)

 

 

1,503

 

State

 

 

608

 

 

 

387

 

 

 

151

 

 

 

$

826

 

 

$

(21,165

)

 

$

(9,237

)

Reconciliation of Income Tax Provision at Federal Statutory Income Tax Rate and Effective Tax Rate

 

A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Federal statutory income tax rate

 

 

21.0

%

 

 

24.5

%

 

 

35.0

%

State taxes, net of federal benefit

 

 

1.8

 

 

 

2.6

 

 

 

2.7

 

Federal research and development tax credit

 

 

(12.8

)

 

 

(5.2

)

 

 

(7.4

)

Remeasurement of net deferred tax assets

 

 

 

 

 

4.2

 

 

 

 

Share-based compensation

 

 

(6.7

)

 

 

(2.8

)

 

 

4.5

 

Foreign-derived intangible income

 

 

(3.2

)

 

 

 

 

 

 

Other

 

 

(1.9

)

 

 

(0.6

)

 

 

(0.5

)

Effective income tax rate

 

 

(1.8

%)

 

 

22.7

%

 

 

34.3

%

 

Net Deferred Tax Assets and Liabilities

Net deferred tax assets as of September 30, 2019 and 2018 consisted of the following:

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Share-based compensation

 

$

9,901

 

 

$

7,372

 

Other temporary differences

 

 

915

 

 

 

828

 

Accrued compensation

 

 

821

 

 

 

696

 

Tax credit carryforwards

 

 

763

 

 

 

 

Accrued expenses

 

 

150

 

 

 

60

 

Capitalized research and development expenses

 

 

 

 

 

223

 

Unrealized loss

 

 

 

 

 

139

 

Total deferred tax assets

 

 

12,550

 

 

 

9,318

 

Valuation allowance

 

 

 

 

 

 

Net deferred tax assets

 

 

12,550

 

 

 

9,318

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Depreciation

 

 

(1,027

)

 

 

(798

)

Prepaid expenses

 

 

(148

)

 

 

(145

)

Unrealized gain

 

 

(34

)

 

 

 

Total deferred tax liabilities

 

 

(1,209

)

 

 

(943

)

Net deferred income tax assets (liabilities)

 

$

11,341

 

 

$

8,375

 

 

Schedule of Reconciliation of Uncertain Tax Positions A reconciliation of the beginning and ending amount of uncertain tax positions is summarized as follows:

 

 

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

 

 

(in thousands)

 

Beginning Balance

 

$

1,679

 

 

$

1,175

 

Additions based on tax positions for the current period

 

 

156

 

 

 

563

 

Reductions for tax positions due to lapse of statute of limitations

 

 

(87

)

 

 

 

Reductions for tax positions of prior periods

 

 

(98

)

 

 

(59

)

Ending Balance

 

$

1,650

 

 

$

1,679