Income Taxes (Tables)
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9 Months Ended |
Jun. 30, 2021 |
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| Income Taxes [Abstract] |
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| Reconciliation of Income Tax Expense (Benefit) |
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Three Months Ended |
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Nine Months Ended |
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June 30, |
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June 30, |
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2021 |
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2020 |
|
2021 |
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2020 |
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Income tax (benefit) expense at U.S. federal statutory rates |
$ |
(1,168,845) |
|
$ |
(584,825) |
|
$ |
1,872,314 |
|
$ |
(1,493,179) |
State income tax (benefit) expense, net of federal (benefit) expense |
|
(90,502) |
|
|
(45,268) |
|
|
144,971 |
|
|
(115,615) |
Non-deductible expenses |
|
(2,807) |
|
|
332,230 |
|
|
(2,807) |
|
|
335,869 |
Effect of stock options exercised |
|
53,011 |
|
|
— |
|
|
— |
|
|
— |
Effect of common stock purchase warrants exercised |
|
— |
|
|
— |
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|
(2,038,919) |
|
|
— |
Effect of Paycheck Protection Program funds |
|
8,784 |
|
|
— |
|
|
(113,442) |
|
|
— |
U.S. research and development tax credit |
|
(919,415) |
|
|
— |
|
|
(919,415) |
|
|
— |
Effect of foreign income tax rates |
|
(3,716,935) |
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|
(16,478) |
|
|
(3,744,512) |
|
|
49,908 |
Effect of global intangible low taxed income |
|
78,626 |
|
|
85,522 |
|
|
148,383 |
|
|
101,642 |
Change in valuation allowance |
|
2,834,482 |
|
|
415,449 |
|
|
1,828,730 |
|
|
1,097,900 |
Other, net |
|
50,538 |
|
|
53,872 |
|
|
51,626 |
|
|
54,094 |
Income tax (benefit) expense |
$ |
(2,873,063) |
|
$ |
240,502 |
|
$ |
(2,773,071) |
|
$ |
30,619 |
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| Significant Components of Deferred Tax Assets and Liabilities |
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June 30, |
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September 30, |
|
2021 |
|
2020 |
Deferred tax assets: |
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|
|
|
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Federal net operating loss carryforwards |
$ |
8,269,223 |
|
$ |
8,759,589 |
State net operating loss carryforwards |
|
1,647,082 |
|
|
1,682,104 |
Foreign net operating loss carryforwards – U.K. |
|
15,259,909 |
|
|
11,655,853 |
Foreign capital allowance – U.K. |
|
149,371 |
|
|
113,522 |
U.S. research and development tax credit carryforwards |
|
919,415 |
|
|
— |
Share-based compensation |
|
770,598 |
|
|
1,255,983 |
Interest expense |
|
1,165,193 |
|
|
850,248 |
Change in fair value of derivative liabilities |
|
654,354 |
|
|
195,265 |
Other, net – U.K. |
|
123,341 |
|
|
93,739 |
Other, net – U.S. |
|
187,644 |
|
|
179,677 |
Gross deferred tax assets |
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29,146,130 |
|
|
24,785,980 |
Valuation allowance for deferred tax assets |
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(15,903,470) |
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|
(14,074,740) |
Net deferred tax assets |
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13,242,660 |
|
|
10,711,240 |
Deferred tax liabilities: |
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In-process research and development |
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(882,427) |
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|
(882,427) |
Developed technology |
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— |
|
|
(369,237) |
Covenant not-to-compete |
|
(37,711) |
|
|
(49,832) |
Other, net – Malaysia |
|
(11,297) |
|
|
(11,297) |
Other, net – U.S. |
|
(6,371) |
|
|
(6,371) |
Net deferred tax liabilities |
|
(937,806) |
|
|
(1,319,164) |
Net deferred tax asset |
$ |
12,304,854 |
|
$ |
9,392,076 |
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| Schedule of Deferred Tax Amounts Classified in Balance Sheets |
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June 30, |
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September 30, |
|
2021 |
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2020 |
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Deferred tax asset – U.K. |
$ |
12,379,578 |
|
$ |
9,466,800 |
Total deferred tax asset |
$ |
12,379,578 |
|
$ |
9,466,800 |
|
|
|
|
|
|
Deferred tax liability – U.S. |
$ |
(63,427) |
|
$ |
(63,427) |
Deferred tax liability – Malaysia |
|
(11,297) |
|
|
(11,297) |
Total deferred tax liability |
$ |
(74,724) |
|
$ |
(74,724) |
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