Income Taxes

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Federal and State filings remain subject to examination by tax authorities for tax periods ending after September 30, 2018.

The income tax provision for the years ended September 30, 2023, 2022 and 2021 consists of the following:

(in thousands)	Years Ended September 30,
	2023		2022		2021
Current:
Federal income tax	$	(18)	$	3,884	$	7,347
State income tax	(2)		1,061		1,971
Total current	(20)		4,945		9,318
Deferred:
Federal income tax	630		(5,943)		2,144
State income tax	330		(2,242)		105
Valuation allowance	(139)		4,309		—
Total deferred	821		(3,876)		2,249
Income tax provision	$	801	$	1,069	$	11,567

Income tax provision attributable to income before income taxes differed from the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes for each of the years ended September 30, 2023, September 30, 2022 and September 30, 2021, respectively, as a result of the following:

(in thousands)	Years Ended September 30,
	2023				2022				2021
	Amount		Tax Rate		Amount		Tax Rate		Amount		Tax Rate
Income tax at the statutory federal rate	$	516	21.0	%	$	2,560	19.8	%	$	9,741	21.0	%
Increase (decrease) resulting from:
State income taxes, net of federal benefit	265		10.8	%	120		0.9	%	1,645		3.5	%
Permanent and other reconciling items, net	27		1.1	%	44		0.3	%	41		0.1	%
Land Donation – Bargain Sale	—		—	%	(6,279)		(48.5	%)	—		—	%
Valuation allowance	(139)		(5.7	%)	4,309		33.3	%	—		—	%
Other	132		5.4	%	315		2.4	%	140		0.3	%
Income tax provision	$	801	32.6	%	$	1,069	8.3	%	$	11,567	24.9	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2023, and 2022 are presented below:

(in thousands)	September 30,
	2023		2022
Deferred tax assets:
Goodwill	$	10,836	$	12,623
Inventories	1,307		5,577
Stock compensation	279		198
Accrued bonus	29		—
Intangibles	345		399
Charitable contribution carryforward	5,809		5,776
Net operating loss	3,762		—
Interest expense limitation	1,599		—
Other	129		108
Total deferred tax assets	24,095		24,681
Deferred tax liabilities:
Property and equipment	55,163		55,007
Investment in Citree	943		740
Prepaid insurance	229		214
Total deferred tax liabilities	56,335		55,961
Valuation allowance	4,170		4,309
Net deferred income tax liabilities	$	(36,410)	$	(35,589)

The Company has a federal net operating loss carryforward of $17,400 thousand and state net operating loss carryforward of $2,400 thousand at September 30, 2023, which resulted in deferred tax assets of $3,657 thousand and $105 thousand, respectively. Both federal and state net operating losses have an indefinite life.

The Company has established a partial valuation allowance on our charitable contribution carryforward as of September 30, 2022, as the amount of expected future taxable income is not likely to support the use of the deferred tax asset before it expires. The valuation allowance at September 30, 2023 and 2022 was $4,170 thousand and $4,309 thousand, respectively.