Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)

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

	For the Years Ended
	September 30,
	2023		2022
	(Amounts in thousands)
Income (loss) before income tax expense
U.S.	$	5,202	$	417
Foreign		(467)		1,522
	$	4,735	$	1,939
Income tax expense:
Current:
Federal	$	1,551	$	—
State		326		50
	$	1,877	$	50
Deferred:
Federal	$	(1,971)	$	—
State		(375)		—
		(2,346)		—
Total income tax (benefit) expense	$	(469)	$	50

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,
	2023				2022
	(Dollar amounts in thousands)
Computed “expected” tax expense	$	994	21.0	%	$	407	21.0	%
Increases (reductions) in taxes resulting from:
State income taxes, net of federal tax benefit		106	2.2	%		27	1.5	%
Foreign rate differential		9	0.2	%		(30)	(1.5)	%
Employee Retention Credit		(134)	(2.8)	%		—	—	%
Permanent differences		(7)	(0.2)	%		(19)	(1.0)	%
Change in valuation allowance		(1,746)	(36.8)	%		(226)	(11.5)	%
Research and development credit		(112)	(2.4)	%		(131)	(6.8)	%
Deferred Tax True Ups		322	6.8	%		—	—	%
FIN 48 Reserves		166	3.5	%		—	—	%
Return to Provision Adjustments		(64)	(1.3)	%		14	0.7	%
Other items		(3)	(0.1)	%		8	0.2	%
Income tax (benefit) expense	$	(469)	(9.9)	%	$	50	2.6	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's net deferred tax assets and liabilities as of September 30, 2023 and 2022 are as follows:

	September 30,		September 30,
	2023		2022
	(Amounts in thousands)
Deferred tax assets:
Pension	$	321	$	373
Intangibles		—		29
Capitalized research and development expenses		651		—
Other reserves and accruals		1,118		596
Inventory reserves and other		278		244
Federal and state tax credits		771		1,273
Federal and state net operating loss carryforwards		—		151
Foreign net operating loss carryforwards		2,945		2,693
Lease Liability		239		—
Gross deferred tax assets		6,323		5,359
Less: valuation allowance		(3,283)		(5,029)
Realizable deferred tax asset		3,040		330
Deferred tax liabilities:
Depreciation and amortization		(84)		(121)
ROU Asset		(235)		—
Pension		(372)		(209)
Intangibles		(3)		—
Realizable deferred tax liabilities		(694)		(330)
Net deferred tax assets	$	2,346	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

	For the Year Ended		For the Year Ended
	September 30, 2023		September 30, 2022
	(Amounts in thousands)
Balance, beginning of year	$	502	$	433
Additions for tax positions of current year		22		68
(Subtractions) additions for tax positions of prior years		(201)		1
Balance, end of period	$	323	$	502