v3.26.1
Note 13 - Income Taxes
 6 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 13 – Income Taxes

 

The Company accounts for income taxes using the liability method, which requires the recognition of deferred tax assets or liabilities for the tax-effected temporary differences between the financial reporting and tax bases of its assets and liabilities, and for net operating loss (NOL) and tax credit carryforwards.

 

A reconciliation of income tax expense, which is zero as a result of the Company’s full valuation allowance for deferred tax assets, and the amount computed by applying the U.S. statutory rate of 21% to loss from continuing operations is as follows:

 

  

Three Months Ended

  

Six Months Ended

 
  

March 31,

  

March 31,

 
  

2026

  

2025

  

2026

  

2025

 
                 

Income tax benefit at U.S. federal statutory rates

 $(649,435) $(1,649,002) $(1,769,276) $(2,029,082)

State income tax benefit, net of federal benefit

  (102,054)  (127,680)  (278,029)  (157,109)

Non-deductible expenses

  18,946   19,874   20,596   20,613 

U.S. research and development tax credit

  (137,696)  (197,911)  (254,453)  (428,708)

Other

  5,255   —   13,407   — 

Change in valuation allowance

  864,984   1,954,719   2,267,755   2,594,286 

Income tax expense

 $—  $—  $—  $—