Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense

The provision for income tax expense consists of:

	Year Ended September 30,
	2019		2018
Current:
Federal	$	2,297,000	$	1,483,000
State		148,000		130,000
Total current		2,445,000		1,613,000
Deferred:
Federal		52,000		631,000
State		131,000		126,000
Total deferred		183,000		757,000
Income tax expense	$	2,628,000	$	2,370,000

Reconciliation of the Federal Statutory Tax Rate to the Total Tax Provision

A reconciliation of the federal statutory tax rate to the total tax provision is as follows:

	Year Ended September 30,
	2019			2018
Federal income taxes computed at the statutory rate		21.0	%		24.3	%
State income taxes, net of federal benefit		1.6	%		1.4	%
Change in current tax rate		—			(2.9	%)
Change in deferred tax rate		—			(2.3	%)
Research & development tax refunds & credits		(1.9	%)		(1.8	%)
Dividend received deduction		(0.6	%)		(0.9	%)
Domestic production activities deduction		—			(1.2	%)
Incentive stock options		0.2	%		(1.0	%)
Other, net		0.2	%		0.1	%
Effective income tax rate		20.5	%		15.7	%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following:

	September 30,
	2019			2018
Deferred Tax Assets:
Accrued liabilities and reserves	$	344,000		$	218,000
Allowance for doubtful accounts		104,000			71,000
Inventory		98,000			212,000
R&D tax credits carryforwards		—			87,000
Stock-based compensation		82,000			104,000
Net operating losses carryforwards		7,000			57,000
Gross Deferred Income Tax Assets		635,000			749,000
Deferred and Other Tax Liabilities:
Domestic international sales corporation		(464,000	)		(543,000	)
Percentage of completion		(2,048,000	)		(1,717,000	)
Property and equipment		(1,080,000	)		(904,000	)
Unrealized gain on investments		(265,000	)		(75,000	)
Unrecognized tax benefits		(150,000	)		(150,000	)
Gross Deferred and Other Income Tax Liabilities		(4,007,000	)		(3,389,000	)
Net Deferred and Other Income Tax Assets (Liabilities)	$	(3,372,000	)	$	(2,640,000	)