v3.26.1
Note 13 - Income Taxes
 9 Months Ended
Jun. 30, 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

  

Nine Months Ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 
                 

Income tax benefit at U.S. federal statutory rates

 $(1,467,554) $(1,537,851) $(3,236,830) $(3,566,933)

State income tax benefit, net of federal benefit

  (230,616)  (403,409)  (508,645)  (560,518)

Non-deductible expenses

  52,054   58,150   72,650   78,763 

U.S. research and development tax credit

  (704,711)  6,722   (959,164)  (421,986)

Effect of change in effective tax rate

  —   554,430   —   554,430 

Change in estimated unrecognized tax benefit

  703,833   —   717,240   — 

Change in valuation allowance

  1,646,994   1,321,958   3,914,749   3,916,244 

Income tax expense

 $—  $—  $—  $—