v3.25.2
INCOME TAXES
 9 Months Ended
Jun. 30, 2025
INCOME TAXES  
INCOME TAXES

11.  INCOME TAXES

The components of income taxes are as follows:

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​

Three Months Ended

​

Nine Months Ended

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June 30, 2025

    

June 30, 2024

    

June 30, 2025

    

June 30, 2024

Federal

 

​

  

 

​

  

 

​

  

 

​

  

Current

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$

—

​

$

4,634,449

​

$

—

​

$

4,909,486

Deferred

​

 

89,756

​

 

63,072

​

 

(1,303,205)

​

 

320,800

Total

​

​

89,756

​

​

4,697,521

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(1,303,205)

​

 

5,230,286

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​

 

​

​

 

​

​

 

​

​

 

  

State

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​

​

 

​

​

 

​

​

 

  

Current

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​

58,613

​

​

1,324,128

​

​

147,788

​

 

1,402,710

Deferred

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(10,382)

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18,021

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(457,301)

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91,657

Total

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​

48,231

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​

1,342,149

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(309,513)

​

 

1,494,367

Total income tax (benefit) expense

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$

137,987

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$

6,039,670

​

$

(1,612,718)

​

$

6,724,653

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The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best estimate of current and future taxes to be paid. Significant judgments and estimates are required in the determination of the consolidated income tax expense. The Company’s provision for income taxes is computed by applying a federal rate of 21.0% and a blended state rate of approximately 5.0% to 6.0% to taxable income or loss after consideration of non-taxable and non-deductible items.

The effective income tax rate for the three months ended June 30, 2025 was 6.2%, as compared to 25.6%, for the same period in 2024. The effective income tax rate for the nine months ended June 30, 2025 was (29.5)%, as compared to 26.7%, for the same period in 2024. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses.

Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses.

The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows:

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June 30, 2025

    

September 30, 2024

Deferred tax liabilities

 

​

  

 

​

  

Property and equipment

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$

9,543,124

​

$

7,437,645

Other

​

 

1,621,785

​

 

1,509,487

Total deferred tax liabilities

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$

11,164,909

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$

8,947,132

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​

 

​

​

 

​

Deferred income tax assets

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​

​

 

​

Accruals & Other

​

$

2,908,231

​

$

2,325,671

Net operating loss carry forward-Federal

​

​

2,830,323

​

​

—

Net operating loss carryforward-States

​

​

1,222,123

​

​

663,548

Net operating loss valuation allowance-States

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​

(532,975)

​

​

(532,975)

Total deferred tax assets

​

$

6,427,702

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$

2,456,244

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​

 

​

​

 

​

Total net deferred tax liabilities

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$

4,737,207

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$

6,490,888

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Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company had $13.5 million and $0 million of federal net operating loss carryforwards at June 30, 2025 and September 30, 2024, respectively. The Company had $84.5 million and $20.5 million of state net operating loss carryforwards at June 30, 2025 and September 30, 2024, respectively. The state net operating loss carryforwards begin to expire in 2025. The increases in federal and state NOL carryforwards were primarily due to a temporary difference resulting from bonus depreciation on equipment obtained as part of the Tribute acquisition.

The Company does not believe that it has any unrecognized tax benefits included in its consolidated financial statements that require recognition. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in general and administrative expenses.