Provision for Income Taxes

12 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Provision for Income Taxes

The significant components of provision for income taxes from continuing operations are summarized as follows for the years ending September 30, 2024 and 2023 (in thousands):

	2024		2023
Current expense	$	3,525	$	3,823
Deferred expense	(3,175)		(4,464)
Income tax expense (benefit)	$	350	$	(641)

The following table presents the significant differences between our income taxes at the federal statutory rate and the Company's effective tax rate for continuing operations for the years ending September 30, 2024 and 2023 (in thousands):

	2024		2023
Income taxes at the federal statutory rate	$	1,654	$	187
State taxes, net	(200)		(536)
Other permanent items	(1,104)		(292)
Income tax expense (benefit)	$	350	$	(641)

An analysis of the Company's deferred tax assets and liabilities at September 30, 2024 and 2023 is as follows (in thousands):

	2024		2023
Deferred tax assets:
Net operating loss carry forwards, net	$	1,903	$	855
Stock based compensation	732		708
Accrued compensation	2,204		2,094
Capitalized transaction costs	532		973
Right-of-use	1,682		1,669
Interest limitation	6,313		2,601
Total deferred tax assets	$	13,366	$	8,900
Less: valuation allowance	(1,894)		(847)
Total deferred tax assets, net	$	11,472	$	8,053
Deferred tax liabilities:
Depreciation on fixed assets	(402)		(418)
Amortization on identified intangibles and goodwill	(4,364)		(4,050)
Accrued expenses	(461)		(515)
Total deferred tax liabilities	$	(5,227)	$	(4,983)
Net deferred tax assets	$	6,245	$	3,070