Note 13 - Income Taxes

9 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 13 – Income Taxes

The Company accounts for income taxes using the liability method, which requires the recognition of deferred tax assets or liabilities for the tax-effected temporary differences between the financial reporting and tax bases of its assets and liabilities, and for net operating loss (NOL) and tax credit carryforwards.

A reconciliation of income tax expense, which is zero as a result of the Company’s full valuation allowance for deferred tax assets, and the amount computed by applying the U.S. statutory rate of 21% to loss from continuing operations is as follows:

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2025			2024			2025			2024
Income tax benefit at U.S. federal statutory rates	$	(1,537,851	)	$	(2,171,412	)	$	(3,566,933	)	$	(5,609,213	)
State income tax benefit, net of federal benefit		(403,409	)		(168,129	)		(560,518	)		(434,313	)
Non-deductible expenses		58,150			2,000			78,763			2,708
U.S. research and development tax credit		6,722			1,109,784			(421,986	)		692,784
Effect of change in effective tax rate		554,430			—			554,430			—
Change in valuation allowance		1,321,958			1,227,757			3,916,244			5,348,034
Income tax expense	$	—		$	—		$	—		$	—