Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.23.3
Income Taxes
 12 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Federal and State filings remain subject to examination by tax authorities for tax periods ending after September 30, 2018.
The income tax provision for the years ended September 30, 2023, 2022 and 2021 consists of the following:

(in thousands) Years Ended September 30,
2023 2022 2021
Current:
Federal income tax $ (18) $ 3,884  $ 7,347 
State income tax (2) 1,061  1,971 
Total current (20) 4,945  9,318 
Deferred:
Federal income tax 630  (5,943) 2,144 
State income tax 330  (2,242) 105 
Valuation allowance (139) 4,309  — 
Total deferred 821  (3,876) 2,249 
Income tax provision $ 801  $ 1,069  $ 11,567 
Income tax provision attributable to income before income taxes differed from the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes for each of the years ended September 30, 2023, September 30, 2022 and September 30, 2021, respectively, as a result of the following:


(in thousands) Years Ended September 30,
2023 2022 2021
Amount Tax Rate Amount Tax Rate Amount Tax Rate
Income tax at the statutory federal rate $ 516  21.0  % $ 2,560  19.8  % $ 9,741  21.0  %
Increase (decrease) resulting from:
State income taxes, net of federal benefit 265  10.8  % 120  0.9  % 1,645  3.5  %
Permanent and other reconciling items, net 27  1.1  % 44  0.3  % 41  0.1  %
Land Donation – Bargain Sale —  —  % (6,279) (48.5  %) —  —  %
Valuation allowance (139) (5.7  %) 4,309  33.3  % —  —  %
Other 132  5.4  % 315  2.4  % 140  0.3  %
Income tax provision $ 801  32.6  % $ 1,069  8.3  % $ 11,567  24.9  %
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, 2023, and 2022 are presented below:
(in thousands) September 30,
2023 2022
Deferred tax assets:
Goodwill $ 10,836  $ 12,623 
Inventories 1,307  5,577 
Stock compensation 279  198 
Accrued bonus 29  — 
Intangibles 345  399 
Charitable contribution carryforward 5,809  5,776 
Net operating loss 3,762  — 
Interest expense limitation 1,599  — 
Other 129  108 
Total deferred tax assets 24,095  24,681 
Deferred tax liabilities:
Property and equipment 55,163  55,007 
Investment in Citree 943  740 
Prepaid insurance 229  214 
Total deferred tax liabilities 56,335  55,961 
Valuation allowance 4,170  4,309 
Net deferred income tax liabilities $ (36,410) $ (35,589)
The Company has a federal net operating loss carryforward of $17,400 thousand and state net operating loss carryforward of $2,400 thousand at September 30, 2023, which resulted in deferred tax assets of $3,657 thousand and $105 thousand, respectively. Both federal and state net operating losses have an indefinite life.
The Company has established a partial valuation allowance on our charitable contribution carryforward as of September 30, 2022, as the amount of expected future taxable income is not likely to support the use of the deferred tax asset before it expires. The valuation allowance at September 30, 2023 and 2022 was $4,170 thousand and $4,309 thousand, respectively.