Income Taxes	9 Months Ended
Jun. 30, 2015
Income Taxes
Income Taxes:	3. Income Taxes The income tax expense for the three and nine months ended June 30, 2015 was $3.3 million and $2.6 million, respectively, compared to a tax expense of $176,000 and $912,000 for the three and nine months ended June 30, 2014, respectively. The effective tax rate for the three months ended June 30, 2015 was (1,328.1%). The effective tax rate for the three months ended June 30, 2015 differs from the statutory rate primarily because of the unfavorable impact of a $3.3 million deferred tax asset valuation allowance recorded by the Company for tax benefits previously realized that may not currently be realized in future periods. The effective tax rate for the three months ended June 30, 2014 was 26%. The effective tax rate for the three months ended June 30, 2014 differs from the statutory rate primarily because of the R&D Tax Credit and the Domestic Production Activities Deduction (“DPAD”). The 2014 fiscal year estimated annual effective income tax rate reflects the benefit from the R&D Tax Credit for only the three months ended December 31, 2013, as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2013. The effective tax rate for the nine months ended June 30, 2015 was (380.8%) primarily reflecting a valuation allowance recorded in the three month period ended June 30, 2015 for those deferred tax assets that may not be realized in future periods. The effective tax rate for the nine months ended June 30, 2014 was 28%. The effective tax rate differs from the statutory rate for the nine months ended June 30, 2014 primarily because of the R&D Tax Credit and the DPAD. In the three month period ended June 30, 2015, a valuation allowance was recorded on the majority of the federal and state deferred tax assets, net of liabilities, due to the uncertainty on the Company’s ability to generate sufficient future taxable income to realize its deferred tax assets. The remaining amount of the deferred tax assets recognized are attributable to tax planning strategies and the ability to carry-back federal tax losses to claim a tax refund. The Company will continue to maintain the balance of the valuation allowance until the Company generates a sufficient level of profitability to warrant a conclusion that it no longer is more likely than not that these net state deferred tax assets will not be realized in future periods On September 13, 2014, the U.S. Treasury Department and the IRS issued final regulations that addressed cost incurred in acquiring, producing, or improving tangible property (the “tangible property regulations”). The tangible property regulations were generally effective for tax years beginning on or after January 1, 2014 and required the Company to make additional tax accounting method changes as of October 1, 2014. However, the impact of these changes to the Company’s consolidated financial statements was immaterial as of and for the nine months ended June 30, 2015.

3. Income Taxes

The income tax expense for the three and nine months ended June 30, 2015 was $3.3 million and $2.6 million, respectively, compared to a tax expense of $176,000 and $912,000 for the three and nine months ended June 30, 2014, respectively.

The effective tax rate for the three months ended June 30, 2015 was (1,328.1%). The effective tax rate for the three months ended June 30, 2015 differs from the statutory rate primarily because of the unfavorable impact of a $3.3 million deferred tax asset valuation allowance recorded by the Company for tax benefits previously realized that may not currently be realized in future periods.

The effective tax rate for the three months ended June 30, 2014 was 26%. The effective tax rate for the three months ended June 30, 2014 differs from the statutory rate primarily because of the R&D Tax Credit and the Domestic Production Activities Deduction (“DPAD”). The 2014 fiscal year estimated annual effective income tax rate reflects the benefit from the R&D Tax Credit for only the three months ended December 31, 2013, as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2013.

The effective tax rate for the nine months ended June 30, 2015 was (380.8%) primarily reflecting a valuation allowance recorded in the three month period ended June 30, 2015 for those deferred tax assets that may not be realized in future periods. The effective tax rate for the nine months ended June 30, 2014 was 28%. The effective tax rate differs from the statutory rate for the nine months ended June 30, 2014 primarily because of the R&D Tax Credit and the DPAD.

In the three month period ended June 30, 2015, a valuation allowance was recorded on the majority of the federal and state deferred tax assets, net of liabilities, due to the uncertainty on the Company’s ability to generate sufficient future taxable income to realize its deferred tax assets. The remaining amount of the deferred tax assets recognized are attributable to tax planning strategies and the ability to carry-back federal tax losses to claim a tax refund. The Company will continue to maintain the balance of the valuation allowance until the Company generates a sufficient level of profitability to warrant a conclusion that it no longer is more likely than not that these net state deferred tax assets will not be realized in future periods

On September 13, 2014, the U.S. Treasury Department and the IRS issued final regulations that addressed cost incurred in acquiring, producing, or improving tangible property (the “tangible property regulations”). The tangible property regulations were generally effective for tax years beginning on or after January 1, 2014 and required the Company to make additional tax accounting method changes as of October 1, 2014. However, the impact of these changes to the Company’s consolidated financial statements was immaterial as of and for the nine months ended June 30, 2015.