v3.26.1
Income Taxes
 6 Months Ended
Mar. 31, 2026
Income Taxes [Abstract]  
Income Taxes

NOTE 11: Income Taxes

 

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 losses and projections for future taxable losses over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will not realize the benefits of these deductible differences. Accordingly, we have maintained a full valuation allowance against its net deferred tax assets as of March 31, 2026. As a result of the full valuation allowance, no material income tax benefit was recognized in the consolidated statements of operations, and no net deferred tax asset or liability recorded on the consolidated balance sheets for the three and six months ended March 31, 2026 and 2025.

 

The table below presents the effective income tax rate for the following periods:

 

      Six Months Ended
March 31,  		  
      2026       2025  
Effective Tax Rate     -       -  

 

The Company was taxed as a corporation for federal, state and local income tax purposes for the six months ended March 31, 2026 and March 31, 2025. The effective tax rate for the six months periods ended March 31, 2026 and March 31, 2025 differ from the U.S. federal income tax rate of 21.0% primarily due to the full valuation allowance maintained against the Company’s deferred tax assets.

 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. We have assessed its impact on our financial statements and OBBBA did not have a material impact on our financial statements.