INCOME TAXES

9 Months Ended

Jun. 30, 2026

INCOME TAXES

INCOME TAXES

12.  INCOME TAXES

The components of income taxes are as follows:

	Three Months Ended				Nine Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Federal
Current	$	207,911	$	—	$	250,542	$	—
Deferred		656,032		89,756		1,585,909		(1,303,205)
Total		863,943		89,756		1,836,451		(1,303,205)
State
Current		178,476		58,613		303,690		147,788
Deferred		(297,378)		(10,382)		(64,755)		(457,301)
Total		(118,902)		48,231		238,935		(309,513)
Total income tax expense (benefit)	$	745,041	$	137,987	$	2,075,386	$	(1,612,718)

The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best estimate of current and future taxes to be paid. Significant judgments and estimates are required in the determination of the consolidated income tax expense. The Company’s provision for income taxes is computed by applying a federal rate of 21.0% and a blended state rate of approximately 5.0% to 6.0% to taxable income or loss after consideration of non-taxable and non-deductible items.

The effective income tax rate for the three months ended June 30, 2026 was 18.5%, as compared to 6.2%, for the same period in 2025. The effective income tax rate for the nine months ended June 30, 2026 was 25.1%, as compared to 29.5%, for the same period in 2025. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses.

Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses.

The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows:

	June 30, 2026		September 30, 2025
Deferred tax liabilities
Property and equipment	$	10,231,370	$	10,057,004
Other		1,413,889		1,483,362
Total deferred tax liabilities	$	11,645,259	$	11,540,366
Deferred income tax assets
Accruals & Other	$	3,043,687	$	3,215,102
Net operating loss carryforward-Federal		144,541		1,451,126
Net operating loss carryforward-States		470,665		824,539
Net operating loss valuation allowance-States		(288,314)		(703,928)
Total deferred tax assets	$	3,370,579	$	4,786,839
Total net deferred tax liabilities	$	8,274,680	$	6,753,527

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company had $688,000 and $6.9 million of federal net operating loss carryforwards at June 30, 2026 and September 30, 2025, respectively. The Company had $31.9 million and $41.9 million of state net operating loss carryforwards at June 30, 2026 and September 30, 2025, respectively. The state net operating loss carryforwards begin to expire in 2026.

The Company does not believe that it has any unrecognized tax benefits included in its consolidated financial statements that require recognition. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in general and administrative expenses.