Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 consists of, in thousands:

	Year Ended		Three Months Ended		Year Ended
	December 31,		December 31,		September 30,
	2022		2021		2021
Current	$	8	$	—	$	(53)
Deferred	—		—		—
Total provision (benefit) for income taxes	$	8	$	—	$	(53)

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 year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021:

	Year Ended		Three Months Ended		Year Ended
	December 31,		December 31,		September 30,
	2022		2021		2021
Statutory tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of U.S. federal tax benefit	(3.2)	%	1.9	%	5.4	%
Return to accrual adjustment	—	%	—	%	5.8	%
Change in rate	(4.1	%)	—	%	—	%
Permanent differences	(14.5)	%	—	%	—	%
Valuation allowance	20.5	%	(21.4	%)	(32.7	%)
Other exclusions	(18.0)	%	(1.5)	%	1.3	%
Company’s effective tax rate	1.7	%	0.0%		0.8	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences related to deferred taxes at December 31, 2022, 2021, and September 30, 2021 consist of the following, in thousands:

	December 31,		December 31,		September 30,
	2022		2021		2021
Deferred tax assets:
Net operating loss carryforwards	$	6,376	$	6,382	$	5,895
Accounts receivable	72		69		69
Inventory	1,071		994		966
Intangibles	2,079		2,320		2,370
Accrued expenses	312		271		334
Stock options	—		5		5
Other	64		64		64
Total deferred tax assets	9,974		10,105		9,703
Deferred tax liabilities:
Financial basis in excess of tax basis of certain assets	803		855		815
Other	120		294		365
Total deferred tax liabilities	923		1,149		1180
Less valuation allowance	9,051		8,956		8,523
Net deferred taxes	$	—	$	—	$	—

Schedule 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 December 31, 2022	—
Transition period ended December 31, 2021	2,100	No expiry
Year ended September 30, 2021	9,500	No expiry
Year ended September 30, 2020	9,270	No expiry
Year ended September 30, 2019	1,495	No expiry