Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense

The provision for income tax expense consists of:

	Year Ended September 30,
	2021			2020
Current:
Federal	$	992,000		$	3,430,000
State		189,000			346,000
Total current		1,181,000			3,776,000
Deferred:
Federal		(269,000	)		(2,436,000	)
State		(83,000	)		(190,000	)
Total deferred		(352,000	)		(2,626,000	)
Income tax expense	$	829,000		$	1,150,000

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,
	2021			2020
Federal income taxes computed at the statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		1.6	%		1.3	%
Research & development tax refunds & credits		(5.1	%)		(6.3	%)
Dividend received deduction		(1.9	%)		(1.2	%)
Other, net		(3.1	%)		2.4	%
Effective income tax rate		12.5	%		17.2	%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following:

	September 30,
	2021			2020
Deferred Tax Assets:
Accrued liabilities and reserves	$	276,000		$	340,000
Allowance for doubtful accounts		72,000			98,000
Inventory		1,783,000			369,000
Stock-based compensation		79,000			81,000
Net operating losses carryforwards		20,000			5,000
Gross Deferred Income Tax Assets		2,230,000			893,000
Deferred and Other Tax Liabilities:
Domestic international sales corporation		(236,000	)		(329,000	)
Property and equipment		(1,943,000	)		(1,158,000	)
Unrealized gain on investments		(295,000	)		(2,000	)
Unrecognized tax benefits		(150,000	)		(150,000	)
Gross Deferred and Other Income Tax Liabilities		(2,624,000	)		(1,639,000	)
Net Deferred and Other Income Tax Assets (Liabilities)	$	(394,000	)	$	(746,000	)