Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The benefit for income taxes for the years ended September 30, 2021 and 2020 consists of, in thousands:

	2021		2020
Continuing operations:
Current	$	(53)	$	(1,249)
Deferred	—		—
	(53)		(1,249)
Discontinued operations – current	—		—
Total benefit for income taxes	$	(53)	$	(1,249)

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, 2021 and 2020:

	2021		2020
Statutory tax rate	21.0	%	21.0	%
State income taxes, net of U.S. federal tax benefit	5.4	%	4.8	%
Return to accrual adjustment	5.8	%	—	%
Tax credits	—	%	—	%
Charges without tax benefit	—	%	0.1	%
Valuation allowance	(32.7	%)	(19.4	%)
Other exclusions	1.3	%	0.1	%
Company’s effective tax rate	0.8	%	6.6	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences related to deferred taxes at September 30, 2021 and 2020 consist of the following, in thousands:

	2021		2020
Deferred tax assets:
Net operating loss carryforwards	$	5,895	$	4,659
Accounts receivable	69		69
Inventory	966		883
Intangibles	2,370		1,259
Accrued expenses	334		132
Stock options	5		14
Investment in equity method investee	—		100
Other	64		—
Total deferred tax assets	9,703		7,116
Deferred tax liabilities:
Financial basis in excess of tax basis of certain assets	815		416
Other	365		323
Total deferred tax liabilities	1,180		739
Less valuation allowance	8,523		6,377
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, 2021	9,500	No expiry
Year ended September 30, 2020	9,270	No expiry
Year ended September 30, 2019	1,605	No expiry