As of the end of each of fiscal years 2022 and 2021, the Company’s gross liability for unrecognized tax benefits related to uncertain tax positions was $0.4 million and $0.6 million, respectively. If the tax benefits of such amounts were recognized, $0.3 million and $0.5 million of such amounts, respectively, would decrease the Company’s effective income tax rate. The Company’s net liability for accrued interest and penalties was $0.3 million as of

each of

September 30, 2022, and September 30, 2021. The Company has elected to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the years ended September 30, 2022, and September 30, 2021, the Company recognized approximately $0.02 million and $0.03 million in interest and penalties, respectively.

The Company’s activity was as follows:


	Fiscal Years Ended September 30,
	2022			2021

	(In thousands)

Beginning year balance	$	608		$	608
Decrease related to prior year tax positions		(255	)		—
Increase related to current year tax positions		—			—
Settlements		—			—
Lapse of statutes of limitations		—			—

Ending year balance	$	353		$	608

The total amount of unrecognized tax benefits can change due to final regulations, audit settlements, tax examinations activities, lapse of applicable statutes of limitations, and the recognition and measurement criteria under the guidance related to accounting for uncertainly in income taxes. The Company is unable to estimate what this change could be within the next 12 months, but does not believe it would be material to its financial statements.

The Company’s income tax expense was as follows:


	Fiscal Years Ended September 30,
	2022			2021

	(In thousands)
Current
Federal	$	855		$	1,545
State		(149	)		513

Total Current		706			2,058

Deferred
Federal		888			752
State		162			169

Total Deferred		1,050			921

Total	$	1,756		$	2,979

The principal reasons for the differences from the federal statutory income tax rate and the Company’s effective tax rate were as follows:


	Fiscal Years Ended September 30,
	2022		2021
Federal statutory income tax rate		21.0%		21.0%
State income taxes, net of federal benefit		3.9		4.3
Permanent and other differences		0.4		0.2
Difference due to executive compensation		1.0		1.1
Tax return to provision adjustments		(1.3)		(0.1)
Uncertain tax position allowance		(3.0)		0.4
Stock-based compensation		0.1		1.6

Effective income tax rate		22.1%		28.5%

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows:


	Fiscal Years Ended September 30,
	2022			2021

	(In thousands)
Deferred tax assets
Accrued compensation	$	40		$	60
Stock compensation		20			2
State taxes		175			266
Capital loss carryforward		7			7
ROU asset/lease liability		(1	)		(1	)

Gross deferred tax assets		241			334
Disallowed capital loss		(7	)		(7	)

Net deferred tax assets		234			327
Deferred tax liabilities
Property and equipment		(35	)		(33	)
Management contracts		(13,687	)		(12,731	)

Total deferred tax liabilities		(13,722	)		(12,764	)

Net deferred tax liabilities	$	(13,488	)	$	(12,437	)