INCOME TAXES

9 Months Ended

Jun. 30, 2022

INCOME TAXES

INCOME TAXES

10.  INCOME TAXES

The components of income taxes are as follows:

	Three Months Ended
	June 30, 2022		June 30, 2021
Federal
Current	$	100,000	$	(433,621)
Deferred		408,087		390,724
Total		508,087		(42,897)
State
Current		—		(120,532)
Deferred		143,309		109,585
Total		143,309		(10,947)
Total income tax expense (benefit)	$	651,396	$	(53,844)

	Nine Months Ended
	June 30, 2022		June 30, 2021
Federal
Current	$	100,000	$	(917,344)
Deferred		637,268		559,471
Total		737,268		(357,873)
State
Current		—		(258,738)
Deferred		207,948		157,799
Total		207,948		(100,939)
Total income tax expense (benefit)	$	945,216	$	(458,812)

The effective income tax rate for the three months ended June 30, 2022, was 28.7%, as compared to (0.60)% for the same period in 2021. The effective income tax rate for the nine months ended June 30, 2022, was 30.0 %, as compared to (6.7)% for the same period in 2021. 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.

On June 16, 2021, the Company received notice that the SBA had granted forgiveness and repaid $9.8 million of Paycheck Protection Program (“PPP”) borrowings to its lender. The forgiveness was recorded as “other nonoperating income” for the three and nine months ended June 30, 2021. According to the CARES Act passed by Congress in March 2020, PPP loan forgiveness is not taxable. In accordance with the Consolidated Appropriations Act, 2021, the Company’s PPP related expenditures in fiscal year 2020 were considered deductible expenses for federal income tax purposes. The PPP forgiveness had a significant impact on the effective income tax rate for the three and nine months ended June 30, 2021, as taxable income was decreased by $9.8 million.

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

	June 30,		September 30,
	2022		2021
Deferred tax liabilities
Property and equipment	$	4,980,722	$	4,883,398
Other		2,863		37,582
Total deferred tax liabilities	$	4,983,585	$	4,920,980
Deferred income tax assets
Other	$	314,633	$	358,400
Net operating loss carryforward		1,790,303		2,529,147
Total deferred tax assets	$	2,104,936	$	2,887,547
Total net deferred tax liabilities	$	2,878,649	$	2,033,433

The Company and all subsidiaries file a consolidated federal and various state income tax returns on a fiscal year basis. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years ended prior to September 30, 2018.

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 selling and administrative expenses.