Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The benefit for income taxes for the years ended September 30, 2020 and 2019 consists of, in thousands:

	2020		2019
Continuing operations:
Current	$	(1,249)	$	(13)
Deferred	—		—
	(1,249)		(13)
Discontinued operations – current	—		8
Total benefit for income taxes	$	(1,249)	$	(5)

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes the differences between the U.S. federal statutory rate and the Company’s effective tax rate for continuing operations financial statement purposes for the years ended September 30, 2020 and 2019:

	2020		2019
Statutory tax rate	21.0	%	21.0	%
State income taxes, net of U.S. federal tax benefit	4.8	%	6.6	%
Return to accrual adjustment	—	%	(0.6	%)
Tax credits	—	%	—	%
Charges without tax benefit	0.1	%	(5.3	%)
Valuation allowance	(19.4	%)	(22.1	%)
Other exclusions	0.1	%	0.7	%
Company’s effective tax rate	6.6	%	0.3	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences related to deferred taxes at September 30, 2020 and 2019 consist of the following, in thousands:

	2020		2019
Deferred tax assets:
Net operating loss carryforwards	$	4,659	$	2,632
Accounts receivable	69		41
Inventory	883		393
Intangibles	1,259		707
Accrued expenses	132		53
Stock options	14		109
Investment in equity method investee	100		112
Other	—		—
Total deferred tax assets	7,116		4,047
Deferred tax liabilities:
Financial basis in excess of tax basis of certain assets	416		705
Other	323		95
Total deferred tax liabilities	739		800
Less valuation allowance	6,377		3,247
Net deferred taxes	$	—	$	—

Summary of Operating Loss Carryforwards

The Company’s U.S. Federal net operating loss (“NOL”) carryforwards consist of the following, in thousands:

	NOL carryforward		Year Expires
Year ended September 30, 2020	$	10,100,000	No expiry
Year ended September 30, 2019	$	2,569,000	No expiry
Year ended September 30, 2018	$	2,431,000	No expiry
Year ended September 30, 2016	$	82,820	2036