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10. INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Schedule of income tax provision

The Company’s provision (benefit) for income taxes consists of the following United States federal and state, and foreign components:

 

   For the Fiscal Years Ended 
   September 30, 
   2019   2018 
Current:        
      Federal  $(4,162)  $– 
      State   –    – 
      Foreign   –    – 
           
 Deferred:          
      Federal   (713,066)   1,602,329 
      State   (127,140)   152,603 
      Foreign   (45,471)   9,234 
    (889,839)   1,764,166 
Change in valuation allowance   885,677    (2,511,318)
Income tax benefit  $(4,162)  $(747,152)
Schedule of deferred income taxes

The Company’s deferred tax assets and liabilities are comprised of the following:

 

   September 30, 
   2019   2018 
 Deferred tax assets:          
Net operating losses  $2,310,746   $1,919,260 
Capital loss carryforwards   38,120    36,705 
Share-based compensation   168,462    114,317 
Alternative minimum tax credit   9,165    99,757 
Excess tax over book basis in inventory   32,273    25,975 
Reserves and other   534,444    28,938 
Deferred rent   19,291    – 
Accrued compensation   8,832    – 
Accrued expenses   151,444    – 
Depreciation   27,272    – 
Charitable contributions   813    – 
    3,300,862    2,224,952 
Valuation allowance   (2,665,672)   (1,602,725)
Net deferred tax assets   635,190    622,227 
           
Deferred tax liabilities:          
Prepaid insurance   (140,951)   (15,960)
Intangible assets   (298,280)   (324,572)
481 Election (IPS)   (195,959)   (248,570)
Excess book over tax basis in fixed assets   –    (33,125)
    (635,190)   (622,227)
           
Total  $–   $– 
Reconciliation of effective tax rate

The significant elements contributing to the difference between the United States federal statutory tax rate and the Company’s effective tax rate are as follows:

 

   For the Fiscal Years Ended 
   September 30, 
   2019   2018 
US federal statutory rate   21.0%    21.0% 
State tax rate, net of federal benefit   2.8%    2.8% 
Share-based compensation   0.0%    (2.2%)
Foreign rate differential   1.4%    0.5% 
Other   1.9%    2.6% 
Change in tax credits   (0.1%)   0.0% 
Effect of federal tax rate change   0.0%    208.2% 
Effect of repatriating Swiss earnings   0.0%    16.2% 
Capital loss - expiration   0.0%    30.0% 
Change in valuation allowance   (26.6%)   (397.2%)
Federal Alternative Minimum Taxes (AMT)   0.1%    0.0% 
Permanent differences   (0.4%)   0.0% 
           
Income tax benefit   0.1%    (118.2%)