Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Income Tax Benefit (Provision)

Income before income taxes for the twelve months ended September 30, 2022, 2021, and 2020 is comprised of the following (amounts in thousands):

	2022		2021		2020
Domestic	$	10,619	$	10,966	$	11,071
Foreign	(7,882)		(2,164)		(1,662)
Total	$	2,737	$	8,802	$	9,409

For the twelve months ended September 30, 2022, 2021, and 2020 the income tax benefit (provision) was as follows (amounts in thousands):

	2022		2021		2020
Current:
Federal	$	(187)	$	—	$	—
State	(303)		(78)		(46)
Foreign	(1,799)		(1,119)		(436)
Total current provision for income taxes	(2,289)		(1,197)		(482)
Deferred:
Federal	(1,264)		(1,387)		(2,182)
State	512		457		67
Foreign	3,336		1,303		1,002
Total deferred provision for income taxes	2,584		373		(1,113)
Total tax benefit (expense)	$	295	$	(824)	$	(1,595)

Schedule Significant Components of Net Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2022 and 2021 are as follows (amounts in thousands):

	2022		2021
Deferred tax assets:
Stock-based compensation	$	1,793	$	1,864
Net operating loss carryforwards	6,656		5,669
Research credit carryforwards	7,882		7,322
Lease liability	859		856
Other, net	1,117		—
Total deferred assets	18,307		15,711
Deferred tax liabilities:
Right of use asset	(633)		(570)
Intangibles	(18,693)		(8,019)
Other, net	—		1
Total deferred liabilities	(19,326)		(8,588)
Valuation allowance for net deferred tax assets	(2,868)		(729)
Net deferred tax asset (liability)	$	(3,887)	$	6,394

Schedule of Income Taxes Computed Using Federal Income Tax Rate

The difference between the income tax benefit (provision) and income taxes computed using the U.S. federal income tax rate was as follows for the twelve months ended September 30, 2022, 2021, and 2020 (amounts shown in thousands):

	2022		2021		2020
Amount computed using statutory rate	$	(575)	$	(1,849)	$	(1,977)
Net change in valuation allowance for net deferred tax assets	(1,702)		(19)		221
Other net deferred tax adjustments	1,606		—		—
Foreign rate differential	267		13		86
Non-deductible items	(64)		(141)		(178)
Transaction costs	(411)		—		—
State income tax	273		(276)		(205)
Research and development credits	1,166		1,248		897
Foreign income tax	—		(15)		10
Contingent consideration	285		—		—
Uncertain tax positions	(318)		—		—
Stock compensation, net	(232)		215		(449)
Income tax provision (expense)/benefit	$	295	$	(824)	$	(1,595)

Schedule of Reconciliation of Unrecognized Tax Benefits

The following table reconciles the beginning and ending amount of unrecognized tax benefits for the twelve months ended September 30, 2022, 2021, and 2020 (amounts shown in thousands):

	2022		2021		2020
Gross unrecognized tax benefits at the beginning of the year	$	2,114	$	1,810	$	1,607
Additions from tax positions taken in the current year	484		268		203
Additions from tax positions taken in prior years	66		36		—
Gross unrecognized tax benefits at end of the year	$	2,664	$	2,114	$	1,810