Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)

The components of income before income tax expense, income tax expense (benefit), and deferred income tax are comprised of the following:

	For the Years Ended
	September 30,
	2022		2021
	(Amounts in thousands)
Income (loss) before income tax expense1
U.S.	$	417	$	1,316
Foreign		1,522		(173)
	$	1,939	$	1,143
Income tax expense (benefit):
Current:
Federal	$	—	$	(674)
State		50		(30)
	$	50	$	(704)
Deferred:
Federal	$	—	$	1,148
Total income tax expense	$	50	$	444

¹ FY 2021 consists of $678 thousand from continuing operations and $465 thousand from discontinued operations totaling $1,143 thousand.

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differed from the statutory federal income tax rate due to the following:

	For the Years Ended September 30,
	2022				2021
	(Dollar amounts in thousands)
Computed “expected” tax expense	$	407	21.0	%	$	240	21.0	%
Increases (reductions) in taxes resulting from:
State income taxes, net of federal tax benefit		27	1.5	%		(38)	(3.3)	%
Foreign rate differential		(30)	(1.5)	%		13	1.1	%
Exclusion of PPP Loan Forgiveness Income		—	—	%		(458)	(40.1)	%
Exclusion of the UK's Gain on Sale of Disc Ops Entity		—	—	%		(98)	(8.6)	%
Permanent differences		(19)	(1.0)	%		(22)	(1.9)	%
Change in valuation allowance		(226)	(11.5)	%		1,598	139.8	%
Research and development credit		(131)	(6.8)	%		(116)	(10.1)	%
Benefit of US Federal NOL carryback		—	—	%		(359)	(31.4)	%
Return to Provision Adjustments		14	0.7	%		(394)	(34.5)	%
Other items		8	0.2	%		78	6.8	%
Income tax expense	$	50	2.6	%	$	444	38.8	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's net deferred tax assets and liabilities as of September 30, 2022 and 2021 are as follows:

	September 30,		September 30,
	2022		2021
	(Amounts in thousands)
Deferred tax assets:
Pension	$	373	$	1,006
Intangibles		29		61
Other reserves and accruals		596		628
Inventory reserves and other		244		232
Federal and state tax credits		1,273		1,141
Federal and state net operating loss carryforwards		151		123
Foreign net operating loss carryforwards		2,693		2,333
Gross deferred tax assets		5,359		5,524
Less: valuation allowance		(5,029)		(5,334)
Realizable deferred tax asset	$	330	$	190
Deferred tax liabilities:
Depreciation and amortization	$	(121)	$	(190)
Pension		(209)		—
Realizable deferred tax liabilities	$	(330)	$	(190)
Net deferred tax assets	$	—	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

	For the Year Ended		For the Year Ended
	September 30, 2022		September 30, 2021
	(Amounts in thousands)
Balance, beginning of year	$	433	$	343
Additions for tax positions of current year		68		60
Additions for tax positions of prior years		1		30
Balance, end of period	$	502	$	433