Income Taxes

12 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

Income Tax (Benefit) Provision

The components of (loss) income before (benefit) provision for income taxes are as follows, in thousands:

	Years Ended September 30,
	2025			2024
Domestic	$	(32,790	)	$	(9,563	)
Foreign		4,798			2,052
	$	(27,992	)	$	(7,511	)

The components of the provision for income taxes are as follows, in thousands:

	Years Ended September 30,
	2025			2024
Current:
Domestic federal	$	56		$	(49	)
Foreign		2,295			793
Foreign withholding taxes		814			279
Domestic state		19			36
Total current		3,184			1,059
Deferred:
Domestic federal		—			—
State		—			—
Foreign		(850	)		(84	)
Total deferred		(850	)		(84	)
Total provision	$	2,334		$	975

A reconciliation of actual income taxes to income taxes at the expected U.S. federal corporate income tax rate is as follows, in thousands, except percentages:

	Years Ended September 30,
	2025					2024
Tax (benefit) expense at the federal statutory rate	$	(5,878	)	21.0	%	$	(1,577	)	21.0	%
Effect of permanent book-tax differences		101		-0.4	%		152		-2.0	%
State tax provision		(168	)	0.6	%		18		-0.3	%
Valuation allowance for net deferred tax assets		2,496		-8.9	%		1,179		-15.7	%
Tax rate differential		279		-1.0	%		301		-4.0	%
Goodwill impairment		4,089		-14.6	%		1,334		-17.8	%
Withholding taxes		814		-2.9	%		279		-3.7	%
Other items		601		-2.1	%		(711	)	9.5	%
	$	2,334		-8.3	%	$	975		-13.0	%

Deferred Income Taxes and Valuation Allowance

Deferred income taxes reflect the tax effects of temporary differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to be realized. The components of deferred tax assets and deferred tax liabilities are as follows, in thousands:

	September 30,
	2025			2024
Deferred tax assets:
Net operating loss carryforwards	$	18,785		$	17,699
Accruals and reserves		2,653			1,983
Income tax credits		3,255			2,163
Operating lease liabilities		4,361			4,150
Research and development costs		1,427			1,531
Foreign service fee		745			1,579
Other assets		940			878
Total deferred tax assets		32,166			29,983
Valuation allowance		(25,088	)		(22,658	)
Deferred tax assets, net of valuation allowance		7,078			7,325
Deferred tax liabilities:
Goodwill and identifiable intangible assets		(212	)		(1,124	)
Property and equipment, net		(1,494	)		(1,860	)
Operating lease, right-of-use assets		(4,136	)		(3,987	)
Prepaid assets		(213	)		(169	)
Total deferred tax liabilities		(6,055	)		(7,140	)
Total deferred tax assets, net	$	1,023		$	185

Changes in the deferred tax valuation allowance are as follows, in thousands:

	Years Ended September 30,
	2025		2024
Balance at the beginning of the year	$	22,658	$	21,506
Additions to valuation allowance		2,430		1,152
Balance at the end of the year	$	25,088	$	22,658

The deferred tax valuation allowance increased by $2.4 million and $1.2 million for the years ended September 30, 2025 and 2024, respectively.

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future income and tax planning strategies in making this assessment. We have established valuation allowances on all net U.S. deferred tax assets, after considering all of the available objective evidence, both positive and negative, historical and prospective, with greater weight given to historical objective evidence, and determined it is not more likely than not that these assets will be realized.

We intend to permanently reinvest undistributed earnings of our foreign subsidiaries. It is not practicable to estimate the amount of tax that might be payable on the undistributed amounts.

Net Operating Losses

As of September 30, 2025, we have federal net operating loss carryforwards of approximately $10.0 million that expire at various times between 2032 and 2035. The utilization of those federal net operating losses is limited to approximately $0.8 million per year. Additionally, we have federal net operating loss carryforwards of approximately $74.3 million that have an indefinite carryforward period. The utilization of those federal net operating losses is limited to 80% of taxable income. We have no foreign net operating loss carryforwards as of September 30, 2025. We have approximately $19.1 million of state net operating loss carryforwards, with various expiration dates and limitations on utilization, depending on the state. As of September 30, 2025, we have approximately $2.7 million of Foreign Tax Credit carryforwards that expire at various times between 2030 and 2035 and approximately $0.6 million of Federal and State Research and Development credits that expire at various times between 2035 and 2045.

Uncertain Tax Positions

For the years ended September 30, 2025 and 2024 we had no unrecognized tax benefit.

Tax Return Matters

We file income tax returns in China, Singapore, Malaysia and the UK, as well as the U.S. and various states in the U.S. We have not signed any agreements with the Internal Revenue Service, any state or foreign jurisdiction to extend the statute of limitations for any fiscal year. As such, the number of open years is the number of years dictated by statute in each of the respective taxing jurisdictions. U.S. Federal tax returns generally have a 3-year statute of limitations. Therefore, U.S. federal returns for tax years ending on or after September 30, 2022 remain open for examination. In addition, the IRS may adjust attribute carryforwards utilized in an open year even though the year the attributes originated may be closed. State and foreign statutes are generally 3 to 5 years but vary by jurisdiction. These open years contain certain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenues and expenses, or the sustainability of income tax positions of Amtech and our subsidiaries.