v3.22.2.2
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Summary of Company's Activity
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  
    
 
 
    
 
 
 
Provision for Income Taxes
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  
    
 
 
    
 
 
 
Principal Reasons for Differences from Federal Statutory Rate
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%
 
    
 
 
   
 
 
 
 
Tax Effects of Temporary Differences of Deferred Tax Assets and Liabilities
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