Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Schedule of Components of Income Tax Expense


	Year ended September 30,
	2020		2019		2018
Current:
Federal tax (benefit) expense	$	(34)	$	220	$	668
State tax expense	446		189		351
Deferred:
Federal tax benefit	(3,018)		(487)		(685)
State tax (benefit) expense	(189)		(99)		3
Income tax (benefit) expense	$	(2,795)	$	(177)	$	337

Schedule of Effective Income Tax Rate Reconciliation

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


	Year ended September 30,
	2020				2019				2018
Expected U.S. federal income taxes at statutory rate	$	(792)	21.0	%	$	81	21.0	%	$	(1,139)	24.6	%
Partnership income not taxed at federal level	85		(2.3)	%	(1,007)		(260.9)	%	294		(6.4)	%
Valuation allowance	(2,694)		71.4	%	251		65.0	%	965		(20.9)	%
State and local income taxes, net of federal benefit	244		(6.5)	%	104		26.9	%	295		(6.4)	%
Nondeductible expenses and other permanent items	496		(13.1)	%	582		150.8	%	66		(1.4)	%
Revaluation of debt and other debt transaction differences	222		(5.9)	%	(189)		(49.0)	%	332		(7.2)	%
Federal tax rate change	—		—	%	—		—	%	(471)		10.2	%
Change in liability for uncertain tax positions	108		(2.9)	%	—		—	%	—		—	%
Federal tax credits	(431)		11.4	%	—		—	%	—		—	%
Other	(33)		0.9	%	1		0.3	%	(5)		0.1	%
Income tax (benefit) expense	$	(2,795)	74.1	%	$	(177)	(45.9)	%	$	337	(7.3)	%

Schedule of Deferred Tax Assets and Liabilities

Net deferred taxes spanning multiple jurisdictions as of September 30, 2020 and 2019 were as follows:


	September 30,
	2020		2019
Deferred tax assets:
Investment in partnership	$	47,897	$	40,880
Stock-based compensation	1187		811
Deferred revenue	525		564
Accrued expenses	181		110
Net operating loss carryforwards	10,969		6,360
Section 163j carryforward	2,498		2,006
Federal tax credits	901		—
Other	73		42
Gross deferred tax assets	64,231		50,773
Valuation allowance	(20,230)		(16,609)

Deferred tax liabilities:
Intangible assets	$	(9,167)	$	(6,257)
Other	(291)		(285)
Net deferred tax asset	$	34,543	$	27,622

Summary of Components of Uncertain Tax Positions

The components of the Company’s liability for uncertain tax benefits are as follows:


Gross unrecognized tax benefits as of September 30, 2019	$	—
Increase in current year tax positions	108
Increase in prior year tax positions	76
Gross unrecognized tax benefits as of September 30, 2020	$	184