| Reconciliation of Income Tax Expense (Benefit) |
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Three Months Ended
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December 31,
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2020
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2019
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Income tax expense (benefit) at U.S. federal statutory rates
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$
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3,634,260
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$
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(710,188)
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State income tax expense (benefit), net of federal expense (benefits)
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281,396
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(55,000)
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Effect of stock options exercised
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(64,290)
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—
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Effect of common stock purchase warrants exercised
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(2,038,919)
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—
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Effect of Paycheck Protection Program funds
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(95,886)
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—
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Effect of foreign income tax rates
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(32,570)
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42,554
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Effect of global intangible low taxed income
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125,145
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50,451
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Change in valuation allowance
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(1,732,786)
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592,710
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Other, net
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1,952
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2,730
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Income tax expense (benefit)
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$
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78,302
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$
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(76,743)
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| Significant Components of Deferred Tax Assets and Liabilities |
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December 31,
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September 30,
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2020
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2020
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Deferred tax assets:
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Federal net operating loss carryforwards
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$
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7,677,224
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$
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8,759,589
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State net operating loss carryforwards
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1,606,045
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1,682,104
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Foreign net operating loss carryforwards – U.K.
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11,618,351
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11,655,853
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Foreign capital allowance – U.K.
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113,522
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113,522
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Share-based compensation
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1,005,282
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1,255,983
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Interest expense
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—
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850,248
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Other, net – U.K.
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93,739
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93,739
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Other, net – U.S.
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528,251
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374,942
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Gross deferred tax assets
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22,642,414
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24,785,980
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Valuation allowance for deferred tax assets
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(12,341,954)
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(14,074,740)
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Net deferred tax assets
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10,300,460
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10,711,240
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Deferred tax liabilities:
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In-process research and development
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(882,427)
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(882,427)
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Developed technology
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—
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(369,237)
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Covenant not-to-compete
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(45,791)
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(49,832)
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Other, net – Malaysia
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(11,297)
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(11,297)
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Other, net – U.S.
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(6,371)
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(6,371)
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Net deferred tax liabilities
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(945,886)
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(1,319,164)
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Net deferred tax asset
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$
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9,354,574
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$
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9,392,076
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| Schedule of Deferred Tax Amounts Classified in Balance Sheets |
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December 31,
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September 30,
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2020
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2020
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Deferred tax asset – U.K.
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$
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9,429,298
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$
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9,466,800
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Total deferred tax asset
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$
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9,429,298
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$
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9,466,800
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Deferred tax liability – U.S.
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$
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(63,427)
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$
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(63,427)
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Deferred tax liability – Malaysia
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(11,297)
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(11,297)
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Total deferred tax liability
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$
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(74,724)
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$
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(74,724)
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