Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.24.3
Income Taxes
 12 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
Note 8. 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, 2024 and 2023 consists of the following:

(in thousands) Years Ended September 30,
2024 2023
Current:
Federal income tax $ 99  $ (18)
State income tax 34  (2)
Total current 133  (20)
Deferred:
Federal income tax 2,260  630 
State income tax 616  330 
Valuation allowance 1,588  (139)
Total deferred 4,464  821 
Income tax provision $ 4,597  $ 801 
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, 2024 and September 30, 2023, respectively, as a result of the following:
(in thousands) Years Ended September 30,
2024 2023
Amount Tax Rate Amount Tax Rate
Income tax at the statutory federal rate $ 2,300  21.0  % $ 516  21.0  %
Increase (decrease) resulting from:
State income taxes, net of federal benefit 514  4.7  % 265  10.8  %
Permanent reconciling items, net 13  0.1  % 16  0.7  %
Officer life insurance (16) (0.1  %) 11  0.4  %
Non-Controlling Interest - Citree 130  1.2  % 37  1.5  %
Valuation allowance 1,588  14.5  % (139) (5.7  %)
Other 68  0.6  % 95  3.9  %
Income tax provision $ 4,597  42.0  % $ 801  32.6  %
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, 2024, and 2023 are presented below:
(in thousands) September 30,
2024 2023
Deferred tax assets:
Goodwill $ 8,986  $ 10,836 
Inventories 194  1,307 
Stock compensation 190  279 
Accrued bonus 145  29 
Intangibles 288  345 
Charitable contribution carryforward 5,800  5,809 
Net operating loss 4,576  3,762 
Interest expense limitation 1,605  1,599 
Other 115  129 
Total deferred tax assets 21,899  24,095 
Deferred tax liabilities:
Property and equipment 55,954  55,163 
Investment in Citree 846  943 
Prepaid insurance 215  229 
Total deferred tax liabilities 57,015  56,335 
Valuation allowance 5,757  4,170 
Net deferred income tax liabilities $ (40,873) $ (36,410)
The Company has a federal net operating loss carryforward of $20,013 and state net operating loss carryforward of $8,321 at September 30, 2024, which resulted in deferred tax assets of $4,203 and $372, respectively. Both the federal and state net operating losses have an indefinite life.
The Company has a partial valuation allowance on our charitable contribution carryforward as of September 30, 2024 and 2023. The valuation allowance at September 30, 2024 and 2023 was $5,757 and $4,170, respectively.