Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.3
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of provision for income tax
The income tax (benefit) provision for the years ended September 30, 2025 and 2024 consists of the following:
(in thousands) Years Ended September 30,
2025 2024
Current:
Federal $ (1) $ 99 
State (3) 34 
Total current (4) 133 
Deferred:
Federal (37,327) 2,260 
State (9,428) 616 
Valuation allowance 8,336  1,588 
Total deferred (38,419) 4,464 
Income tax (benefit) provision $ (38,423) $ 4,597 
Schedule of income tax provision attributable to income from continuing operations
Income tax (benefit) provision attributable to income before income taxes differed from the amount computed by applying the statutory federal income tax rate of 21% to (loss) income before income taxes for each of the years ended September 30, 2025 and September 30, 2024, respectively, as a result of the following:
(in thousands) Years Ended September 30,
2025 2024
Amount Tax Rate Amount Tax Rate
Income tax (benefit) provision at the statutory federal rate $ (39,018) 21.0 % $ 2,300  21.0 %
Increase (decrease) resulting from:
State income taxes, net of federal benefit (8,010) 4.3 % 514  4.7 %
Permanent reconciling items, net 196  (0.1 %) 13  0.1 %
Officer life insurance 11  % (16) (0.1 %)
Non-Controlling Interest - Citree 37  % 130  1.2 %
Valuation allowance 8,336  (4.6 %) 1,588  14.5 %
Other 25  % 68  0.6 %
Income tax (benefit) provision $ (38,423) 20.6 % $ 4,597  42.0 %
Schedule of deferred tax assets and liabilities
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2025, and 2024 are presented below:
(in thousands) September 30,
2025 2024
Deferred tax assets:
Goodwill $ 7,141  $ 8,986 
Inventories 235  194 
Stock compensation 161  190 
Accrued bonus 195  145 
Intangibles 232  288 
Charitable contribution carryforward 5,804  5,800 
Net operating loss 11,377  4,576 
Interest expense limitation 2,681  1,605 
Other 34  115 
Total deferred tax assets 27,860  21,899 
Deferred tax liabilities:
Property and equipment 15,117  55,954 
Investment in Citree 907  846 
Prepaid insurance 197  215 
Total deferred tax liabilities 16,221  57,015 
Valuation allowance 14,094  5,757 
Net deferred income tax liabilities $ (2,455) $ (40,873)