v3.26.1
Income Taxes
 12 Months Ended
Sep. 30, 2025
Income Taxes [Abstract]  
Income Taxes

NOTE 10: Income Taxes

 

The Company’s financial statements include a total federal deferred tax benefit of $108 and state tax expense of $2 on a loss before income taxes of approximately $49 for the years ended September 30, 2025. A reconciliation of the difference between the (expense)/benefit for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows (in thousands, except amounts pertaining to rate which are shown as a percentage):

 

    Years Ended
September 30,
2025		  
Federal Statutory Rate     21.00 %
Effect of:        
Change in Valuation Allowance     (22.94 )%
RTP & Deferred True-up     (0.01 )%
Change in Rate     0.07 %
State Tax Benefit (Net of Fed)     1.90 %
M&E     (0.03 )%
Liability instrument issuance costs     (0.08 )%
Others     0.31 %
Total provision effective rate     0.22 %

 

The components of deferred tax assets and liabilities are as follows (in thousands): 

 

    September 30,
2025		  
Deferred tax assets relating to:      
Net Operating loss carryforwards   $ 4,044  
Research & development tax credit carryforward     7  
174 Expenses     1,070  
Right of Use Liability     169  
Other deferred tax assets     6,843  
Total gross deferred tax assets     12,133  
Deferred tax liabilities relating to:        
Right of Use Asset     169  
Fixed Asset     18  
Other deferred tax liabilities     -  
Total Gross deferred tax liabilities     186  
Deferred assets less liabilities     11,946  
Less: valuation allowance     (11,946 )
Net deferred tax asset (liability)   $ -  

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income (losses) and projections for future taxable income (losses) over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences in the future. The Company had the following federal net operating loss carryforward and research activities credits as of September 30, 2025 (in thousands): 

 

Year incurred   Net
Operating
Loss		     Research
Activities
Credit		  
2023   $ 219       7.33  
2024     6,588       -  
2025     10,938